Cassini Resources : West Musgrave Project Exploration Update

ASX Release (CZI)

19 December 2019

West Musgrave Project Exploration Update

HIGHLIGHTS

• Exploration programs for 2019 completed One Tree Hill
• Significantly improved geological and structural interpretation following high resolution aeromagnetics and step out drilling
• Priority target zone defined in interpreted fold-hinge

Succoth

• Infill drilling supports new geological interpretation more favourable for open-pit mining
• Evaluation of potential mineralisation extensions continuing

Cassini Resources Limited (ASX:CZI) ("Cassini" or the "Company") is pleased to announce results from recent drilling at the One Tree Hill Prospect and Succoth Deposit within the West Musgrave Project ("WMP" or the "Project") in Western Australia. The exploration program is funded as part of the JV Agreement ("JV" or "the Agreement") with OZ Minerals Limited (ASX:OZL) ("OZ Minerals"). The JV partners are currently undertaking a Pre-feasibility Study (PFS) on the Nebo-Babel deposits in conjunction with a regional exploration program across the WMP.

One Tree Hill Prospect

Since the last update in June, activities at One Tree Hill comprised a high-resolution aeromagnetic survey and two reverse circulation drill holes testing extensions to mineralisation east of CZD0099, together with geological and geophysical modelling.

The aeromagnetic survey was flown at 30m height and 40m line spacing, providing very high quality data. The new magnetic data has been critical in the latest structural and geological interpretation of the prospect, particularly given that the Giles Mineralised Intrusions and Giles Metagabbros appear to be clearly defined in the magnetic images. Furthermore, the latest geological and structural interpretation on long-section (Figure 1) correlates very closely with the interpretation of the magnetic data. This interpretation suggests that the mineralised intrusions at One Tree Hill are terminated against the Titan Fault to the southwest and are offset by the ENE trending Osborne Fault (Figure 2). Importantly, this indicates potential extensions of the Giles Mineralised Intrusions to the north of the existing drilling and to the south of the Osborne Fault, both of which remain untested.

Two RC drill holes have been completed for a total of 1,002m, stepping 200m east along strike from CZD0099 which returned several mineralised intercepts including 9m @ 2.56% Cu, 0.37% Ni, 0.06% Co

• 1.32g/t PGE from 344m within a broader disseminated zone of 40m @ 1.16% Cu from 343m.

The best result is 18m @ 0.35% Cu, 0.05% Ni & 0.38g/t PGE from only 52m in CZC0696, much closer to surface than previous intercepts, but correlating with "Zone A" in hole CZD0099 (see ASX announcement 18 June 2019). A full list of results can be found in Table 1.

Figure 1. Long section of the One Tree Hill Prospect, showing significant intercepts and fold hinge target zone. Note the section is tilted into the plane of CZD0099.

The latest geological and geochemical interpretation suggests the mineralised intrusions and country rock are folded along an east-west trending fold plane. The interpreted position of the fold hinge is approximately 100m to the west of CZD0099 and associated with a magnetic anomaly that is plausibly

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due to a higher abundance of magnetite and pyrrhotite within the mineralised units (Figure 2). Fold hinge zones are recognised as preferential positions within which massive sulphides may have accumulated and/or been preserved in metamorphosed and structurally complex mineralised systems. An interpreted fold hinge, west of CZD0099 therefore represents a priority target for further drill testing in 2020.

Figure 2. Plan view of One Tree Hill drill hole collars over Reduced to Pole magnetics.

Table 1. One Tree Hill Prospect Significant Drill Intercepts1.

									INTERSECTIONS
HOLE ID	East	North	RL	Dip	Azi	EOH	From	Width	Cu	Ni	Co	PGE
						(m)	(m)	(m)	%	%	%	g/t
CZC0696	360698	7102898	468	-60	180	502	52	18.0	0.35	0.05	0.01	0.38
							460	6.0	0.33	0.03	0.01	0.31
CZC0698	360800	7102898	468	-60	180	500	118	2	0.85	0.01	0.01	<0.01
							272	2	1.25	0.01	0.01	<0.01
							494	2	1.77	0.01	0.01	<0.01

Notes: 1. Widths are downhole width. There is insufficient drilling to determine true widths of the host intrusions or the higher-grade massive sulphides.

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Succoth Deposit

Cassini reported a new geological interpretation at Succoth Deposit in February 2019 (see ASX announcement 18 February 2019) following completion of detailed infill drilling on a single geological section in the central part of the deposit. The new interpretation had significant positive implications for potential resource increases and mining economics, although additional drilling was required to validate this new interpretation beyond a single section line. The Company has now completed a further four diamond drill holes for 1,793m on two infill sections located 200m and 400m west of the first detailed infill section (Figure 3). The three sections (Figures 4-6) now cover 400m strike extent of the deposit with drill hole spacing on the section line at 50m to 100m, whereas the drill hole spacing on section across rest of the deposit is >200m. A full list of results can be found in Table 2.

Results from the latest drilling support the folded geometry model at Succoth. The latest geometry, if extrapolated across the currently defined strike extent of the deposit, has implications for the scale of the resource, resource extensions, potential mining strip ratio and further economic considerations. Mineralisation remains open laterally, as well as at depth, and between broad-spaced drill holes outside of the three main drill sections.

Figure 3. Succoth Drill hole location plan showing relationship between recent drilling, mineralisation and structure

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Figure 4. Succoth cross section (XS-04).

An aeromagnetic survey was also flown over a relatively small block covering Succoth Deposit to assist with geological interpretation and targeting. The new magnetic data has helped to delineate existing mineralisation within a fault-bounded package of relatively magnetic lithologies. The east-west trending fault at the southern extent of Succoth has been intersected in sections XS-04 and XS-12. Although, mineralisation on those sections is truncated by the fault, it is not necessarily closed-off as some drill holes have interested mineralisation across the fault to the south. Mineralisation at Succoth remains open along a broad northeast-southwest trending corridor and potentially laterally. Broad drill hole spacing in particular to the north-east, means that further infill and extensional drilling could delineate zones of disseminated mineralisation broadly similar to those on section XS-20.

The Company is continuing to evaluate the resource potential of Succoth and the impact it may have on Nebo-Babel development options.

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Figure 5. Succoth cross section (XS-12).

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Figure 6. Succoth cross section (XS-20).

Table 2. Succoth Deposit Significant Drill Intercepts1.

																		INTERSECTIONS
	HOLE ID			East		North			RL		Dip		Azi		EOH
										From	Width	Cu	Ni	PGE
															(m)		(m)	(m)	%	%	g/t
	CZD0100	385139	7117777		483	-60	315	411.8		151.15	14.1	0.34	0.03	0.09
																	383.1	3.0	0.35	0.05	0.11
	CZD0101	385543	7117657		481	-60	315	528.3		299.0	8.8	0.22	0.02	0.03
																	319.0	89.5	0.68	0.07	0.16
	CZD0119	385270	7117626		480	-60	315	379		40.0	2.0	0.46	0.03	0.09
																	62.5	1.5	1.01	0.15	0.07
																	72.0	9.4	0.51	0.07	0.10
																	309.0	21.0	0.36	0.03	0.08
	CZD0120	385328	7117576		481	-60	315	474.4		103.0	21.0	0.69	0.08	0.08
																	202.15	9.5	0.43	0.05	0.11

Notes: 1. Widths are downhole width.

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For further information, please contact:

Richard Bevan

Managing Director

Cassini Resources Limited

Telephone: [phone]

E-mail:[e-mail]

About the Company

Cassini Resources Limited (ASX: CZI) is a base and precious metals developer and explorer based in Perth. In April 2014, Cassini acquired its flagship West Musgrave Project (WMP), located in Western Australia. The Project is a new mining camp with three existing nickel and copper sulphide deposits and a number of other significant regional exploration targets already identified. The WMP is the largest undeveloped nickel - copper project in Australia.

In August 2016, Cassini entered into a three-stage $36M Farm-in/Joint Venture Agreement with prominent Australian mining company OZ Minerals Ltd (ASX: OZL). The Joint Venture provides a clear pathway to a decision to mine and potential cash flow for Cassini.

Cassini is also progressing its Mt Squires Gold Project (100%), and the Yarawindah Nickel - Copper - Cobalt Project (CZI 80%), both located in Western Australia.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled or reviewed by Mr Greg Miles, who is an employee of the company. Mr Miles is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Miles consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The Company is not aware of any new information or data, other than that disclosed in this report, that materially affects the information included in this report and that all material assumptions and parameters underpinning Exploration Results, Mineral Resource Estimates and Production Targets as reported in the market announcements dated 7 December 2015, 28 November 2018, 18 February 2019 and 18 June 2019 continue to apply and have not materially changed.

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ANNEXURE 1:

The following Tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of the Exploration Results at the One Tree Hill Prospect and Succoth Deposit.

Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections)

	Criteria			JORC Code explanation		Commentary
	Sampling techniques			Nature and quality of sampling (eg cut channels,		Samples comprise half core in HQ3 core and quarter
				random chips, or specific specialised industry		core in PQ3 core. Sample lengths are nominally 1m to
				standard measurement tools appropriate to the		lengths no longer than 2m and separated by
				minerals under investigation, such as down hole		geological boundaries where appropriate. Portable
				gamma sondes, or handheld XRF instruments,		XRF has been used to confirm the presence of nickel
				etc). These examples should not be taken as		and copper mineralisation but is not considered
				limiting the broad meaning of sampling.		suitable for public release.
				Include reference to measures taken to ensure		Drill hole locations were surveyed by handheld GPS
				sample representivity and the appropriate		units which have an accuracy of ±5m. Sampling has
				calibration of any measurement tools or systems		been carried out under Cassini protocols and QAQC
				used.		procedures as per industry best practice.
				Aspects of the determination of mineralisation that		Diamond drilling was used to obtain approximately 1m
				are Material to the Public Report. In cases where		(or smaller where appropriate) samples which have
				'industry standard' work has been done this would		been crushed and from which approximately 3 kg is
				be relatively simple (eg 'reverse circulation drilling		pulverised (total prep) to produce a sub sample for
				was used to obtain 1 m samples from which 3 kg		analysis. XRF fusion was used to determine Al2O3, As,
				was pulverised to produce a 30 g charge for fire		BaO, CaO, Co, Cr, Cu, Fe2O3, K2O, MgO, Na2O,Nb,
				assay'). In other cases more explanation may be		Ni,P2O5, Pb, S, SiO2, Sn, Sr, TiO2,, V, Zn, ZrO2. ,Other
				required, such as where there is coarse gold that		elements of interest have been determined by four
				has inherent sampling problems. Unusual		acid digest with an ICP/MS finish. Au, Pt and Pd have
				commodities or mineralisation types (eg submarine		been analysed by fire assay process (40 gm) and
				nodules) may warrant disclosure of detailed		determined by ICP/MS.
				information.
	Drilling techniques			Drill type (e.g. core, reverse circulation, open-hole		Diamond drilling accounts for 100% of the drilling
				hammer, rotary air blast, auger, Bangka, sonic etc)		completed by Cassini and comprises PQ3 and HQ3
				and details (e.g. core diameter, triple of standard		diameter core samples.
				tube, depth of diamond tails, face-sampling bit or
				other type, whether core is orientated and if so, by
				what method, etc).
	Drill sample recovery			Method of recording and assessing core and chip		Overall core recoveries are >95% and there has been
				sample recoveries and results assessed.		no significant sample recovery problems
				Measures taken to maximise sample recovery and		Samples are routinely checked for recovery.
				ensure representative nature of the samples.
				Whether a relationship exists between sample		No sample bias has been observed.
				recovery and grade and whether sample bias may
				have occurred due to preferential loss/gain of
				fine/coarse material.
			Whether core and chip samples have been		All core has been geologically logged and the level of
	Logging
				geologically and geotechnically logged to a level of		understanding of geological variables increases with
				detail to support appropriate Mineral Resource		the maturity of the prospect. The level of
				estimation, mining studies and metallurgical		understanding is considered sufficient to include in
				studies.		future resource estimates.
				Whether logging is qualitative or quantitative in		Logging at the West Musgrave Project records
				nature. Core (or costean, channel, etc)		lithology, mineralogy, mineralisation, weathering,
				photography.		colour and other relevant features of the samples.
						Logging of core is both qualitative (e.g. colour) and
						quantitative (e.g. mineral percentages).
				The total length and percentage of the relevant		All drillholes have been logged in full.
				intersections logged.
	Sub-sampling			If core, whether cut or sawn and whether quarter,		Half core in HQ3 and quarter core in PQ3 has been
	techniques and			half or all core taken.		used for all samples sent for analysis.
	sample preparation

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	Criteria		JORC Code explanation		Commentary
			If non-core, whether riffled, tube sampled, rotary		Not applicable.
			split, etc and whether sampled wet or dry.
			For all sample types, the nature, quality and		The sample preparation of diamond samples at One
			appropriateness of the sample preparation		Tree Hill follows industry best practice in sample
			technique.		preparation involving oven drying, followed by primary
					crushing of the whole sample, secondary crushing,
					riffle splitting to obtain a subsample for pulverisation
					(total prep) using Essa LM5 grinding mills to a grind
					size of 90% passing 75 micron.
			Quality control procedures adopted for all sub-		Field QC procedures involve the use of certified
			sampling stages to maximise representivity of		reference material (CRM) as assay standards and
			samples.		blanks along with field duplicates. The insertion rate of
					these will average 1:20 with an increased rate in
					mineralised zones.
			Measures taken to ensure that the sampling is		Quarter core duplicate sampling will be 1-2% of total
			representative of the in situ material collected,		sampling.
			including for instance results for field
			duplicate/second-half sampling.
			Whether sample sizes are appropriate to the grain		Sample sizes are considered appropriate for the rock
			size of the material being sampled.		type, style of mineralisation (massive and
					disseminated sulphides), the thickness and
					consistency of the intersections, the sampling
					methodology and percent value assay ranges for the
					primary elements within the West Musgrave Project.
	Quality of assay data		The nature, quality and appropriateness of the		The analytical techniques used fused bead XRF for
	and laboratory tests		assaying and laboratory procedures used and		base metals and all other major and trace elements of
			whether the technique is considered partial or		interest. Au, Pt and Pd were determined by FA/AAS
			total.		finish (40 gram). Mixed acid digest and ICP/MS finish
					for other elements of interest e.g. Ag, Mo.
			For geophysical tools, spectrometers, handheld		Hand held assay results have not been reported.
			XRF instruments, etc, the parameters used in
			determining the analysis including instrument
			make and model, reading times, calibrations
			factors applied and their derivation, etc.
			Nature of quality control procedures adopted (eg		Sample preparation for fineness were carried by the
			standards, blanks, duplicates, external laboratory		laboratory as part of their internal procedures to
			checks) and whether acceptable levels of accuracy		ensure the grind size of 90% passing 75 micron was
			(ie lack of bias) and precision have been		being attained. Laboratory QAQC involves the use of
			established.		internal lab standards using certified reference
					material, blanks, splits and replicates as part of the in-
					house procedures.
					Certified reference materials, having a good range of
					values, are inserted blindly and randomly.
					Repeat or duplicate analysis for samples will be reviewed.
	Verification of		The verification of significant intersections by		Diamond core has been viewed by contract geologist,
	sampling and		either independent or alternative company		consultants/technical experts and Cassini staff.
	assaying		personnel.
			The use of twinned holes.		The reported drill holes have not been twinned.
			Documentation of primary data, data entry		Primary data collected for the West Musgrave Project
			procedures, data verification, data storage		using a set of standard Field Marshal templates on
			(physical and electronic) protocols.		laptop computers using lookup codes. The information
					was sent to Geobase Australia for validation and
					compilation into a SQL database server.
			Discuss any adjustment to assay data.		No assay data has been adjusted.

Location of data	Accuracy and quality of surveys used to locate drill
points	holes (collar and down-hole surveys), trenches,
	mine workings and other locations used in Mineral
	Resource estimation.

Reported holes have been located with a Garmin hand-held GPS and are assumed to be accurate to ±5m. This is considered appropriate for exploration drill holes.

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	Criteria			JORC Code explanation		Commentary
						Downhole surveys were completed using north-
						seeking gyroscopes after hole completion. Stated
						accuracy is ± 0.25° in azimuth and ± 0.05° in
						inclination.
				Specification of the grid system used.		The grid system for the West Musgraves Project is
						MGA_GDA95, Zone 52.
				Quality and adequacy of topographic control.		The tenement package exhibits subdued relief with
						undulating hills and topographic representation is
						sufficiently controlled.
	Data spacing and			Data spacing for reporting of Exploration Results.		The holes drilled were for exploration purposes and
	distribution					have not been drilled on a grid pattern. Drill hole
						spacing is considered appropriate for exploration
						purposes.
				Whether the data spacing and distribution is		Data continuity is not sufficient at the current time to
				sufficient to establish the degree of geological and		estimate resources.
				grade continuity appropriate for the Mineral
				Resource and Ore Reserve estimation
				procedure(s) and classifications applied.
				Whether sample compositing has been applied.		No compositing was applied.
	Orientation of data in			Whether the orientation of sampling achieves		The drill holes are drilled towards local grid north and
	relation to geological			unbiased sampling of possible structures and the		south at -70° dip to intersect the mineralised zones at
	structure			extent to which this is known, considering the		a close to perpendicular relationship for the bulk of the
				deposit type.		electromagnetic conductors.
				If the relationship between the drilling orientation		The orientation of drilling and key mineralised structure
				and the orientation of key mineralised structures is		is not considered to have introduced sampling bias.
				considered to have introduced a sampling bias,
				this should be assessed and reported if material.
	Sample security			The measures taken to ensure sample security.		Sample chain of custody is managed by Cassini.
						Samples for the West Musgraves Project are stored on
						site and delivered to Perth by recognised freight
						service and then to the assay laboratory by a Perth-
						based courier service. Whilst in storage the samples
						are kept in a locked yard.
			The results of any audits or reviews of sampling
	Audits or reviews				No reviews have been carried out to date.
				techniques and data.

Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

	Criteria	JORC Code explanation	Commentary
	Mineral tenement and	Type, reference name/number, location and	One Tree Hill is located within E69/1530. Through
	land tenure status	ownership including agreements or material issues	wholly owned subsidiary Wirraway Metals and Mining
		with third parties such as joint ventures,	Pty Ltd, Cassini holds 30% of the leases comprising the
		partnerships, overriding royalties, native title	West Musgrave Project (granted licences M69/0072,
		interests, historical sites, wilderness or national	M69/0073, M69/0074, M69/0075, E69/1505, E69/1530,
		park and environmental settings.	E69/2201, E69/2313, E69/3137, E69/3163, E69/3164,
			E69/3165, E69/3168, E69/3169) over which the
			previous operator retains a 2% NSR. OZ Minerals have
			earned 70% beneficial interest in the project having met
			the Stage 2 hurdle of their earn-in agreement.
			The tenement sits within Crown Reserve 17614.
		The security of the tenure held at the time of	All tenements are in good standing and have an
		reporting along with any known impediments to	existing Aboriginal Heritage Access Agreements in
		obtaining a licence to operate in the area.	place. No Mining Agreement has been negotiated.

Exploration done by	Acknowledgment and appraisal of exploration by
other parties	other parties.

Previous exploration has been conducted by BHP Billiton and WMC. The work completed by BHP Billiton and WMC is considered by Cassini to be of a high standard.

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		Criteria			JORC Code explanation		Commentary
		Geology			Deposit type, geological setting and style of		The project lies within the West Musgrave Province of
					mineralisation.		Western Australia, which is part of an extensive
							Mesoproterozoic orogenic belt. The Nebo-Babel and
							Succoth deposits lie within mafic intrusions of the Giles
							Complex (1068Ma) that has intruded into amphibolite
							facies orthogneiss country rock. Mineralisation is
							hosted within tubular chonolithic gabbronorite bodies
							and are expressed primarily as broad zones of
							disseminated sulphide and comagmatic or potentially
							remobilised accumulations of stronger mineralised,
							matrix to massive sulphides.
		Drill hole Information			A summary of all information material to the		Collar information for CZD0099 is published in the
					understanding of the exploration results including a		body of the report.
					tabulation of the following information for all
					Material drill holes:
					• easting and northing of the drill hole collar
					• elevation or RL (Reduced Level - elevation
					above sea level in metres) of the drill hole
					collar
					• dip and azimuth of the hole
					• down hole length and interception depth
					• hole length.
					If the exclusion of this information is justified on the		Not applicable, all information is included.
					basis that the information is not Material and this
					exclusion does not detract from the understanding
					of the report, the Competent Person should clearly
					explain why this is the case.
		Data aggregation			In reporting Exploration Results, weighting		Weighted averages for One Tree Hill mineralisation
		methods			averaging techniques, maximum and/or minimum		were calculated using parameters of a 0.25% Ni or Cu
					grade truncations (eg cutting of high grades) and		lower cut-off, no minimum reporting length, 6m
					cut-off grades are usually Material and should be		maximum length of consecutive internal waste and the
					stated.		minimum grade for the final composite of 0.25% Ni or Cu.
					Where aggregate intercepts incorporate short		Short lengths of high grade results use either a nominal
					lengths of high grade results and longer lengths of		1% Ni or Cu lower cut-off or a geological boundary
					low grade results, the procedure used for such		such as a massive sulphide interval, no minimum
					aggregation should be stated and some typical		reporting length and 2m maximum interval dilution and
					examples of such aggregations should be shown in		the minimum grade of the final composite of 1% Ni or Cu
					detail.
					The assumptions used for any reporting of metal		Metal equivalent values are not reported.
					equivalent values should be clearly stated.
		Relationship between			These relationships are particularly important in the		Mineralisation at One Tree Hill is poorly defined and
		mineralisation widths			reporting of Exploration Results. If the geometry of		orientations are approximate. Mineralisation is
		and intercept lengths			the mineralisation with respect to the drill hole		generally intersected obliquely to true-width and
					angle is known, its nature should be reported. If it is		approximations have been made based on geological
					not known and only the down hole lengths are		interpretations.
					reported, there should be a clear statement to this
					effect
					(eg 'down hole length, true width not known').
		Diagrams			Appropriate maps and sections (with scales) and		Refer to Figures in body of text.
					tabulations of intercepts should be included for any
					significant discovery being reported These should
					include, but not be limited to a plan view of drill hole
					collar locations and appropriate sectional views.
		Balanced reporting			Where comprehensive reporting of all Exploration		All results have been reported.
					Results is not practicable, representative reporting
					of both low and high grades and/or widths should

be practiced to avoid misleading reporting of Exploration Results.

	Other substantive		Other exploration data, if meaningful and material,
	exploration data		should be reported including (but not limited to):
			geological observations; geophysical survey
			results; geochemical survey results; bulk samples -

All relevant exploration data is shown on figures, in text and Annexure 1.

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	Criteria			JORC Code explanation		Commentary
				size and method of treatment; metallurgical test
				results; bulk density, groundwater, geotechnical
				and rock characteristics; potential deleterious or
				contaminating substances.
	Further work			The nature and scale of planned further work (eg		Cassini and its partner OZ Minerals are currently
				tests for lateral extensions or depth extensions or		undertaking pre-feasibility study (PFS) work at the
				large-scalestep-out drilling).		West Musgrave Project. Further resource definition
				Diagrams clearly highlighting the areas of possible		drilling is likely to be conducted during a PFS in
					conjunction with regional exploration programs
				extensions, including the main geological
					including reconnaissance drilling and geophysics.
				interpretations and future drilling areas, provided
				this information is not commercially sensitive.		All relevant diagrams and inferences have been
						illustrated in this report.

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