Cassini Resources snaps up Nebo-Babel nickel-copper deposits from BHP Billiton
Cassini Resources (ASX:CZI) will trade significantly higher today after acquiring the West Musgrave Project in Western Australia from BHP Billiton (ASX:BHP).
Cassini intends to apply a new, innovative approach to the development of these assets with the goal of becoming a significant base metal producer in a relatively short timeframe.
In addition, Dr Jon Hronsky, ex Western Mining Corporation and BHP, is to join the Cassini board.
The Project area contains the Nebo and Babel sister deposits, the Succoth advanced copper exploration prospect as well as other prospective exploration targets.
Nebo-Babel was first discovered by Western Mining in 2000, where the discovery hole intersected 26.55 metres at 2.45% nickel, 1.78% copper, and 0.74g/t platinum elements with gold.
Following the acquisition of WMC by BHP in 2005, the Nebo-Babel deposits were retained and work was performed, focusing on a large-scale, low-grade production model.
Having conducted its own due diligence on the deposit, Cassini believes that Nebo-Babel has significant production potential as a smaller, higher-grade operation.
Located 13 kilometres to the north-east of Nebo-Babel, the Succoth prospect was a significant copper discovery and the subject of considerable market speculation during early 2013.
Succoth is characterised by its significant size and the continuity of mineralisation, which provides large-scale mining potential.
This potential is demonstrated by the limited drilling undertaken to date, which includes results such as 245.6 metres at 0.69% copper, 0.06% nickel, and 0.16g/t platinum with palladium from 64.4 metres.
Notably, the system remains open at depth.
Mineralisation at Succoth starts near surface, and a development scenario is likely to begin with open pit mining.
Other mineralised prospects include Yappsu, with intersections such as 45.6 metres at 0.5% nickel and 0.68% copper, and Esagila with 23 metres at 0.95% copper and 0.21% nickel.
Consideration payable involves $250,000 cash, with future payments contingent upon successful mineral production.
This de-risks the acquisition for the and allows a focus on assessing development options.
A 2% net smelter royalty is then payable to BHP, and a production milestone payment of $10 million due 12 months after production commences.
This is a remarkable acquisition by a $2 million company, and on very favourable terms to Cassini.
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