BHP Options Aussie Project

Mega-miner BHP Billiton (bhp-n) has decided to exercise an option to earn into an Australian nickel-copper project held 50% by Toronto-based Goldstake Explorations (gxp-t).Goldstake and an Australian company entered into a preliminary agreement whereby a unit of BHP could earn a 75% interest in their project by spending $5 million over four years. The parties now intend to form a joint venture agreement whereby BHP Billiton can earn a 59% stake by spending $5 million.The property of interest, Prospect D, will be explored for nickel sulphide deposits. The property is situated in the Northern Territory near Barrow Creek.Goldstake notes that in the last quarter of 2003, a time domain electromagnetic (TEM) survey revealed the presence of two untested bedrock conductors, situated down-dip of known mineralization. The southern of the two anomalies has a strike extent of 300 metres, and is open to the south, while the northern anomaly has a strike length of 100 metres.The TEM anomalies are associated with a residual gravity high, suggestive of mafic rocks at depth. A larger gravity high (3 km by 6km) is interpreted to be the main intrusive source of the mineralized intrusive at Prospect D.An airborne electromagnetic survey will begin in early May, and will be followed by drilling to test existing and new targets.