Cassini Resources Ltd (ASX:CZI) joint venture partner OZ Minerals Limited (ASX:OZL) has met its $22 million spending commitments to earn into a 51% stake of the West Musgrave project in Western Australia.
Exploration and development company Cassini reported OZ Minerals had served up $19 million for a pre-feasibility study (PFS) for the Nebo-Babel deposits at the large undeveloped nickel-copper project and for regional exploration.
OZ had already paid an initial $3 million, meaning all its earn-in milestones had been met.
Cassini managing director Richard Bevan reported today: “The pace with which OZ Minerals have met the earn-in hurdle is significant as it shows the partners desire to progress rapidly through the study stage and the potential of the project.”
Bevan spoke to Proactive Investors' Stocktube video channel this afternoon, saying: “They've actually met their spend commitment about six months earlier than required, and I think what that does show is their commitment to the project.
“A number of results that we're having through this pre-feasibility stage are really giving us, and Oz Minerals, some confidence about the project moving forward.
“It's a really positive outcome and we're really excited about the next six months.”
READ: Cassini Resources in a sweet spot as it focuses on nickel-copper with OZ Minerals
The PFS began in November 2017 and is expected to be completed in the June 2019 financial quarter.
Bevan said: “So far the outcomes from the PFS have been very positive and we look forward to continuing to share this information over the coming months.
“OZ Minerals has been an excellent partner for Cassini and we will both be working hard to progress the project to the end of the PFS and beyond.”
READ: Cassini Resources spins drill at new zinc targets
To take its West Musgrave stake to 70% per cent, OZ must spend another $14 million for Nebo-Babel studies and regional exploration.
The companies’ West Musgrave Joint Venture has had a number of drilling successes, claiming discoveries at Nebo, Babel and Yappsu
Cassini holds a number of tenements in WA and began a 2,000-metre reverse circulation (RC) drilling program at its 100%-owned West Arunta Zinc Project in northern Western Australia in September, with results due this quarter.
To hear more about the drilling program, listen to Bevan's interview.