Caspin Resources books multiple targets for new Yarawindah Brook drill run

Fri 11 Nov 22, 4:26pm (AEST)
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Key Points

  • Caspin will start drilling at Yarawindah over the next 5 months using both RC and Diamond drill rigs
  • Acreage prospective for nickel, as well as high-value rhodium
  • Bloomberg Intelligence expects platinum group elements (PGE) demand to grow into 2035

Caspin Resources (ASX:CPN) has today flagged its documentation of multiple promising drill targets ahead of the next stage of drilling to take place at the company’s Yarawindah Brook drill run. 

Yarawindah will be perforated by both an RC and diamond drill rig across the following leads: 

  • Upper Serradella target, where rhodium has been found 

  • Lower Seradella, where the company will define geology underground 

  • Infill drilling at the Vicia prospect

Caspin was one of the lucky companies funded by the WA government’s latest exploration incentive scheme. 

Yarawindah Brook, in which Casin holds an 80% interest, is a platinum group element (PGE) and nickel-copper play about 100km away from Perth, WA, give or take a few. 

The mine is located nearby Chalice Mining’s (ASX:CHN) world-class Julimar Project, giving Caspin’s exploration team no shortage of optimism ahead of the next stage of exploration. 

Minimal exploration has been conducted on site previously, according to the company’s website, and the exploration team perceives near-surface nickel and copper.

What’s this about rhodium? 

The company also today highlights new PGE assay results, with a particular focus on rhodium. Platinum and rhodium are often found together, along with iridium. 

Included today is: 

  • 01m @ 6.44g/t PGE (0.15g/t Rhodium) (YARCD0025)

Previous results have included: 

  • 17m @ 2.33/gt PGE & 0.17% nickel, including: 

    • 03m @ 6.04g/t PGE & 0.17% nickel (0.56g/t Rhodium) 

Rhodium was in May this year priced at US$15,450 per ounce, meaning a tonne of rhodium was valued over US$553m.

Rhodium, like platinum, is often used in catalytic converters in internal combustion engine vehicles, but it's also utilised in chemicals manufacturing, fibre optics, headlight reflectors, and used in some electrical parts.

Interestingly, platinum and rhodium can be used in electrolysis machines producing hydrogen, which is part of the reason platinum prices are expected to continue rising: not the platinum itself, but its byproduct iridium. 

Iridium, a byproduct metal of platinum, is a major component in electrolysers, the devices which use water and electricity to create hydrogen. 

Bloomberg Intelligence expects platinum demand to grow by 700,000oz a year by 2030 and potentially hit 1.7Moz a year by 2035.

In September, the World Platinum Investment Council (WPIC) adopted the same claim. 

Reinforcing prospectivity: Management 

“The final results from our earlier drilling campaign have provided additional targets across the project as well as reinforcing the prospectivity of our main targets at Serradella, which only two months ago provided the best drilling results in the project so far,” Caspin CEO Greg Miles said. 

“We’re now embarking on a substantial drill campaign to test the extensions of that mineralisation and ultimately consolidate the Serradella Discovery as a new PGE, nickel and copper resource of note and only the second in the West Yilgarn.”

The next stage of drilling will take place over the next five months. 

Caspin's three month charts
Caspin's three month charts


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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