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Cassini Resources Ltd attracts broker spotlight with Speculative Buy

Hartleys has assigned a 12-month target price of $0.14 per share.
Cassini Resources Ltd attracts broker spotlight with Speculative Buy
Cassini is in a JV with Oz Minerals

Cassini Resources Ltd (ASX:CZI) has received a Speculative Buy from broker Hartleys, who have assigned a 12-month target price of $0.14 per share.

The target is two-and-a-half times higher than the last traded price of $0.054 per share. The following is an extract from the report.

Nebo extending with new massive sulphides reported

Cassini Resources (CZI) has reported further resource extensions to the Nebo deposit, part of the West Musgrave JV Project (OZL earning up to 70%).

The recently completed resource extensional program is expected to update the resource model and mine plan for Nebo, and will be used in the Further Scoping Study (FSS), which is due for release in early Q4 CY17.

The Company doesn’t anticipate the resource estimate for Nebo to vary significantly from the 2015 estimate and already contains 28.9Mt grading 0.53% Ni, 0.46% Cu and 217ppm Co, with 89% of the resource Indicated.

Though, recently completed drilling intersected a new massive sulphide zone (3m @ 1.8% Ni, 0.21% Cu, 0.06% Co and 0.21g/t PGE from 215m) in the eastern parts of the deposit which coincides with an EM conductor.

The EM conductor, which extends some 150m to the east, is expected to be followed up with more drilling.

This is a high-grade result for Nebo, well above the average resource grade of 0.53% Ni, and highlights potential for higher grade zones outside the current resource envelop.

In addition, the Sugar Lode at Nebo, which was discovered by CZI in 2014 continues to extend at good-grade, with a recent drill highlight of 7m @ 1.0% Ni, 1.45% Cu, 0.02% Co and 0.93g/t PGE from 198m.

Sugar Lode is located in the north-western parts of the deposit, with the “roll-over” zone also containing some of the highest grade PGE results seen to date.

The Sugar Lode, has long been considered to be a potential “sweetener” for Nebo and the project development.

Importantly the system remains open to the west and east and at depth (down-plunge).

Further drill-testing is also planned. Assays from resource drilling at Babel are anticipated soon.

Nebo-Babel FSS due for release in early Q4

Exploration activities in the West Musgrave continues to be fully funded by JV partner OZ Minerals (OZL), who can earn up to 70% interest in the project through total expenditure of A$36M over a staged 3½ year period.

CZI retains a free-carried 30% interest in the project through to a decision to mine, and will operate the JV through to the release of the project DFS.

During the first 12 months of the earn-in period, OZL will sole fund A$3m on completing the FSS (essentially an update to the Nebo-Babel Scoping Study).

In addition to updated resources and mine plan, a new geo-metallurgical model for Nebo-Babel will be constructed, and the energy, infrastructure and logistics study fine-tuned to determine the appropriate operational scale and infrastructure solution to undertake the project.

One Tree Hill follow-up in Q3; Maintain a Speculative Buy

Further drilling and detailed geophysics (DHEM and ground EM) are expected to be completed in the SepQ at the One Tree Hill prospect, located ~13km SW of Babel.

Previous drilling at One Tree Hill confirmed a significant magmatic copper, nickel, cobalt and PGE discovery (3.2m @ 2.16% Cu, 0.58% Ni, 0.10% Co & 1.0 g/t PGE, within a broad sulphide zone), considered a similar mineralisation style to large Succoth deposit (156Mt @ 0.5% Cu).

Importantly mineralisation remains open in all directions. We maintain our Speculative Buy recommendation on CZI with price target of 14 cps. We estimate a current cash position of just under A$2M.

View full CZI profile View Profile

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