Caspin Resources’ maiden tin resource points to potential major mine at Bygoo

• Caspin defines maiden resource of 3.94Mt grading 0.5% tin at Kelpie deposit within the Bygoo project
• Company also defines exploration target of 12-20Mt, which could more than double the current resource
• Further growth potential as Kelpie represents just 5% of 20km prospective granite horizon with many other targets to be tested

Special Report: Caspin Resources has taken a big leap towards demonstrating the commercial viability of its flagship Bygoo tin project in NSW by defining a maiden resource.

Using a large database of historical and recent drilling totalling 275 holes for more than 20,000m, the company defined 3.94Mt grading 0.5% tin, or 19,300t of contained tin, within an open pit constraint at the Kelpie deposit.

While this provides a strong first look of what’s present at Bygoo, it is by no means all that is present within the project.

Caspin Resources (ASX:CPN) notes the current resource is constrained only by drilling and has established a large exploration target of between 12Mt and 20Mt at a grade range of 0.35-0.5% tin.

This exploration target could deliver resource growth with more drilling.

To top it off, this only considers extensions to Kelpie with the company pointing out that Kelpie represents just 5% of the ~20km prospective granite horizon throughout the project area, with additional prospects being investigated.

“The maiden resource estimate and massive upside shown by the exploration target demonstrates the Bygoo tin project has the potential to be a major new tin project in Australia,” managing director Greg Miles said.

“As an open pit mineable deposit with mineralisation from surface, the grade of the Kelpie deposit is a standout. 

“This milestone has been achieved by leveraging the extensive legacy database, new strategic drilling by Caspin and the outstanding work by the team to understand the geological setting and therefore the potential to grow this resource much, much bigger.”

Kelpie resource and exploration target

Along with historical drilling, CPN has drilled ~2000m to date and invested considerable time to build a geological model for the Kelpie deposit, which has been estimated within an optimised pit shell and demonstrates reasonable prospects for eventual economic extraction.

Notably, the deposit is in three distinct parts, which the company believes is an artefact of the distribution of drilling.

With mineralisation believed to be continuous along the entire granite contact horizon, this concept forms the basis of the 12-20Mt exploration target, which could more than double the current resource.

While this target is conceptual in nature, it nonetheless provides a clear direction for the company to pursue further exploration along strike and down dip of Kelpie.

Beyond Kelpie

The exploration target isn’t the only target for growth.

While it presents the range of potential outcomes at Kelpie, it doesn’t include the potential for new discoveries and extensions beneath historical workings, which extend over 1000m to the north and 2000m to the southwest.

These workings have not seen any kind of exploration drilling despite mapping and sampling showing extensive mineralisation.

CPN’s reconnaissance mapping has found an extensive network of historical workings within a 2km radius of the Kelpie deposit.

Rock chip sampling of these workings returned many assay results of >0.1% tin and up to 0.82% tin as well as other pathfinders such as bismuth, tungsten, copper, lead, zinc and silver.

Adding further interest, the historical workings appear to have been constrained largely by the relatively sparse occurrence of basement outcrop.

This indicates the footprint of alteration and mineralisation could be much bigger.

The company will complete further detailed surface mapping of hydrothermal alteration, mineralisation and structural geology to prioritise exploration of targets in the region.

“The Kelpie deposit is constrained only by drilling with considerable room for growth as mineralisation remains open along strike and at depth,” Miles added. 

“In fact, Kelpie appears to be just a small part of a very large mineralised system, as demonstrated by the vast extent of historical mining in the area. There is almost no modern effective exploration to test these potential extensions.”

This article was developed in collaboration with Caspin Resources, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.