Cassini Resources, a small Perth-based mining exploration company, says it is acquiring some of BHP’s Western Australian nickel and copper assets that lie close to the state’s border with the Northern Territory and South Australia.
The 1,000 square kilometre prospect in the West Musgrave region contains as much as 1.5 million tonnes of nickel and 1.56 million tonnes of copper. BHP wants to exit what it considers marginal deposits as they cannot produce 15,000 tonnes of minerals annually for 15 years.
Richard Bevan, Cassini’s managing director, said the company will pay BHP $250,000 in cash for the West Musgrave prospect. Cassini will owe BHP a further $10 million and a 2 per cent royalty, paid per quarter, once successful production begins at the site, he said.
Mr Bevan wants to embark on a drilling program over the next six to 12 months at West Musgrave that will assist in a planned high-grade mining operation.
Listed on the ASX in January 2012, Cassini has other prospects in the West Musgrave region as well as gold prospects in Nevada.