Hi Rick,
This certainly does appear like a Tantric ritual weapon, and I am inclined to think Tibetan. The symbolic elements of the motif as mentioned suggest the standard Buddhist/Hindu Tantric forms, the wheel (twelve spokes, nidana in Sanskrit, tendrel in Tibetan), the fish, the lotus.
The axe type blade resembles the 'kattrka', a Tibetan ritual chopper which is used to symbolically 'cut off ignorance' (wouldn't this concept work well these days!!!
The typical form of this ritual weapon however has the semi-circular blade but a handle centrally positioned at the back of the blade. Possibly this may be a more recent, as you note 20th c. , version used as a votive object in ceremonies. Your suggestion of use in dancing or related activity in ritual seems plausible, or sound making rattles or bells also may have been attached.
You really do find unusual objects there Indy!!!
All the best,
Jim