big nickel laterite resource at musgrave

Thought it was very unusual for BHP to agree to a $25m JV to only earn 65% interest on the West Musgrave tenements.

Asked my father for the background - apparently INCO drilled out a 60mt laterite nickel resource at grades over 1% nickel way back in the 60's or early 70's. Resource is open, with potential for much more than that. There have been many many companies who have tried to get access to the tenement since then but have failed. The tenements lie over an Aboriginal Reserve.

I notice that GSE stated that in their quarterley reports that they were in the 'final stages' of having the tenement granted with meetings being held with representatives of the Anangu Pitjantjatjara in December.

If they do come to an agreement with the local Aboriginal people and the applications are granted it would be a massive boost for GSE. This land has been very highly sought after for years with many companies, including many large multinationals, being unsuccessful. BHP would only be after world class resources as well, so you can imagine they believe the laterite resource could be much bigger than INCO stated.

That said, many companies, including multinationals have tried before and failed, so nothing is guaranteed here.

If it is granted - BUY!!!! Definitely!!!