The West Musgrave project area includes the Nebo and Babel sister deposits, the Succoth advanced copper exploration prospect as well as several prospective exploration targets.
The Nebo-Babel nickel-copper sulphide deposit has a current inferred resource of 446 million tonnes (Mt) grading at 0.33% nickel and 0.35% copper, for 1.47Mt of contained nickel and 1.56Mt of contained copper.
Western Mining first identified Nebo-Babel in 2000, when the discovery hole intersected 26.55m at 2.45% nickel, 1.78% copper, and 0.74g per tonne of platinum elements with gold.
BHP Billiton acquired Western Mining in 2005 and retained the Nebo-Babel deposits to perform work that was focused on a large-scale, low-grade production model.
Cassini Resources managing director Richard Bevan said Nebo-Babel was a prominent discovery for Western Mining in the early 2000s and that it is regarded as a world-class deposit.
"As a smaller company, we can apply a different, innovative approach to these assets, focusing on higher-grade opportunities, with the aim of progressing their development to production as a priority," Bevan said.
Apart from Nebo-Babel and Succoth, the acquisition includes a drilling and geochemical database, which confirms regional exploration prospectivity.
Under the terms of the agreement, Cassini will make a A$250, 000 cash payment to BHP, of which 10% has already been paid.
Cassini will also provide a 2% net smelter royalty on all net proceeds from future production, as well as a production milestone payment of A$10m, due 12 months after the first production.
Cassini said it will now look to undertake resource definition drilling to infill known higher-grade zones, to build a higher-grade subset to the overall Nebo-Babel mineral resource.
The company noted that the outcomes of the programme will determine future development scenarios.
Image: BHP Billiton’s West Musgrave project identifying major deposits and prospects. Photo: courtesy of Cassini Resources.