BUXTON RESOURCES LTD (BUX)
Priority off-hole conductor being drill-tested at Merlin
Buxton (BUX) continues with nickel-copper exploration activities within its 100%-owned Double Magic Project in the West Kimberley region of WA.
The Company has now completed some 30 drill holes (9 diamond, 20 reverse circulation (RC) and 1 diamond tail) at the Merlin prospect since drilling commence in mid-July. Assays have been received for 13 of the completed holes, with further widespread nickel-copper sulphide mineralisation intersected, with assays (to date) largely from disseminated zones grading up to 0.5% Ni and 0.2% Cu in parts. Pleasingly visible sulphides have been intersected in all but one hole drilled thus far from the current program, providing further confirmation a very large magmatic sulphide system which spans over 1.5km of strike and extends down to depths in excess of 600m.
HP target within 65m of confirmed vein of Massive Ni Sulphide
Systematic exploration has seen key drill holes surveyed by down-hole electromagnetics (DHEM), with a strong off-hole conductor now being drill-tested ~450m south-east of Conductor D. The drill-testing of Conductor D in August 2015, led to the discovery of massive and net-textured nickel-copper sulphides returning 8m @ 3.05% Ni, 1.88% Cu from 50m (DMRC003).
The new highly conductive (~12,000–28,000S) anomaly has modelled dimensions of ~50m x 150m with target depth anticipated to be reached in the coming days. What upgrades this target in our view is the intersection of a stringer and massive sulphide vein (over ~1m) in diamond hole DMDD0012, which was the platform for the DHEM to generate this high-priority (HP) conductor located ~65m down-dip. Assays are pending for DMDD0012, which is considered the best intercept (thus far) in the current program, and included a 10cm vein of massive (nickel-copper bearing) sulphide.
We look forward to the drilling of this target which remains well located within the Ruins Dolerite (mafic host), represents a higher intensity anomaly then the original Conductor D (which reported conductance of 10,000–15,000S), is good size feature (~50m x 150m) and the absence of graphite (to date) within the area, all bodes well for target-testing in our view. It should be noted, all EM conductors (airborne, ground and down-hole) drill-tested to date at Merlin have proven to be related to nickel-copper sulphide mineralisation.
Highly successful program getting more exciting – Spec Buy
BUX was originally planning to complete ~30 holes for up to 10,000m of drilling at Merlin in the 2017 field season. The aim of the program was to step out from known near-surface mineralisation, and test deeper geological and geophysical targets which included a large chargeable Induced Polarisation (IP) anomaly identified in 2016. The drill program has been highly successful in regards to intersecting sulphides (both visually and confirmed through assays) with the large system now appearing to highlight a potential highly conductive accumulation of nickel-copper sulphides (massive) to the south-east of the original discovery zone.
These higher grade massive nickel-copper sulphides, are the big prize potential, but to delineate in economic accumulations (if present) may take some time. The Company’s current cash position (est) remains a healthy ~A$3.6M. We maintain our Speculative Buy, with an EV of ~$12.5M, we see a very good risk-reward profile especially with high-impact drilling underway.
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