PERTH (miningweekly.com) – Junior Cassini Resources has told shareholders that an updated scoping study on its West Musgrave joint venture (JV), in Western Australia, will take the rising cobalt prices into consideration.
Responding to shareholder queries, Cassini on Wednesday said the company had initiated a review of the West Musgrave project in light of the recent rise in the cobalt price and the implications thereof for the project.
The most significant of the West Musgrave opportunities was the large amount of contained cobalt in the Nebo-Babel deposit, with the cobalt to be produced as a by-product of nickel and copper production.
Cassini noted that the Nebo-Babel deposit is estimated to contain some 30 000 t of cobalt.
“The emerging theme of speciality metals associated with electric vehicles and other new technologies has gained substantial support over the last 12 to 24 months,” said Cassini MD Richard Bevan.
“In response to this, we have received significant inquiry from shareholders and the investment community on Cassini’s exposure to cobalt. While Cassini remains focused on developing the nickel and copper resources at the West Musgrave project, the company is well placed to benefit from increasing prices in cobalt.”
Bevan said the company was able to differentiate itself from competitors by already having a large resource that is extractable using conventional processing technologies.
“Our well-defined feasibility and development timeline should provide investors with confidence that Cassini will reap the benefits of rising cobalt prices in the short to medium term.”
Further scoping study work currently under way will include new mine optimisation and financial modelling.
ASX-listed Oz Minerals is earning a 70% interest in the West Musgrave project by sole funding a minimum of A$36-million on development and exploration. The JV agreement includes continued studies on the Nebo-Babel deposit to progress it to a decision to mine, as well as regional exploration spend of up to A$8-million to assist in identifying additional value-adding opportunities.