Cassini Resources Limited (ASX: CZI) ('Cassini' or the 'Company') is pleased to announce the first results of RC drilling at Cassini's 100%-owned Mount Squires Project in the Musgrave Province of Western Australia.
The project is an early stage exploration project, highly prospective for gold, located adjacent to the western border of the Company's West Musgrave JV Project with OZ Minerals Ltd.
This drilling program at the Handpump Prospect comprised 10 holes for 1,134m of RC. The program was designed to confirm mineralisation controls and extensions to previous drill intercepts which include a best result of 15m @ 2.30g/t Au from 31m. Cassini's drilling program represents the first drilling at the Handpump Prospect since 2011, prior to Cassini's ownership.
Cassini Managing Director Mr Richard Bevan commented 'We're really encouraged by these early results which confirm the presence of significant gold mineralisation at the Handpump Prospect and reinforce the prospectivity of our Mount Squires Gold Project. This is a new frontier for gold exploration in Australia with unrealised potential. Cassini is well positioned to exploit this opportunity through our understanding of the geology of the region and established operational capability. We look forward to receiving the results from the rest of the program.'
The results have confirmed the potential for economic mineralisation at surface and extending to shallow depths.
Exciting Start to Mount Squires Field Program
Results from the first three holes have been received and include a significant result of 20m @ 1.27g/t Au, including 7m @ 2.54g/t Au from 23m in MSC0003. The intersection included a peak result of 1m @ 4.98g/t Au from 26m, demonstrating the potential for high grade mineralisation. This intercept represents a new lode position, not intersected in previous drilling. Much of the historical drilling is oriented to the south, parallel to lodes, therefore not testing the mineralised positions effectively.
Mineralisation is hosted within a hydrothermal breccia at the stratiform contact of a rhyolite and overlying (predominantly barren) volcaniclastic unit. Mineralised lodes, defined by a 0.1g/t Au halo, strike E-W to ESE-WNW and are near vertical to steeply south dipping. Mineralisation is potentially controlled by the intersection of NW-SE and SW-NE trending structures. Interpretation of geology and assay results is continuing.
The hydrothermal breccia and mineralised veins are also largely obscured by the overlying volcaniclastic, however it is exposed at surface in some localities which has been confirmed by concurrent surface rock chip sampling by Cassini with maximum values of up to 0.59g/t Au. Historical rock chip sampling has also recorded values up to 1.73g/t Au at the prospect. Combining the historical drill results and surface rock chips samples indicates a potential mineralised strike of at least 600m which remains open down plunge.
Results for the remaining 7 holes are due over the next couple of weeks. The airborne magnetic survey has been completed and the data is now being processed. The potential for blind mineralisation has also been recognised, not only due to regolith masking the surface geochemistry, but also from the likely strong stratigraphic control on breccia formation. The new aeromagnetic data and interpretation provides an opportunity to target potentially blind mineralised positions. Also on a regional scale, the geochemistry database is being investigated to determine effectiveness and anomalism in conjunction with the new magnetic data, providing further targeting opportunities. The Company expects its understanding of the project potential to develop rapidly with the availability of these new datasets.
Gold prospectivity was first identified at Mount Squires by Western Mining Corporation (WMC) during geochemical surveying in the late 1990's. WMC's primary target was nickel and copper sulphide mineralisation, which returned poor results, however several gold anomalies were identified but were never followed-up and the tenements were later surrendered. Later exploration by Beadell Resources Ltd in the mid 2000's identified a number of gold prospects with further soil geochemistry, rock chip sampling and mapping. Drilling of these anomalies led to the discovery of gold mineralisation at the Handpump Prospect with significant intercepts of 15m @ 2.3g/t from 31m including 5m @ 4.7g/t from 34m and 12m @ 1.3 g/t including 5m @ 2.0g/t from 25m. Mineralisation is described as flat-lying, hosted in rhyolite breccias and appears to have epithermal style characteristics.
Beadell's exploration after the initial discovery was limited due to a change in corporate strategy and the project was later surrendered. Anglo American PLC has also explored the region, primarily for nickel and copper sulphide mineralisation, but their soil geochemical programs included a large multi-element analytical suite which provides critical data for targeting gold mineralisation. Anglo American surrendered their tenements following a decision to reduce global exploration expenditure. Cassini considers that the geological setting may have some affinity with intracontinental 'hot-spot' epithermal gold mineralisation, rather than the more common island arc setting found elsewhere along the Pacific Rim. Examples of this style are deposits in the northern Nevada region, including the Sleeper Deposit, with high, or 'bonanza', gold grades from shallow crustal emplacement.
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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, and the Yarawindah Nickel - Copper - Cobalt Project (CZI 80%), both located in Western Australia.