Base metals: Buxton, Independence pick up more nickel-copper ground; shares get a kick
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Buxton Resources (ASX:BUX) had two declarations for its shareholders this morning that sent shares up 10 per cent.
The first was that its West Kimberley joint venture with the nearly $3 billion Independence Group (ASX:IGO) had added more ground to the partnership.
Buxton and Independence picked up another 560 sq km after they a struck a farm-in agreement with private explorer Baracus.
The second piece of news was that recently discovered sulphide bearing rocks at the Merlin project – which lies within the joint venture – actually do contain nickel, copper and cobalt. Recent results delivered grades of 0.25 per cent nickel and 0.11 per cent copper at the Quick Shears prospect in outcrop (a rock formation that is visible on the surface).
Buxton says ongoing mapping at Quick Shears points to an extensive outcropping nickel-copper sulphide system.
Buxton will be the non-contributing party and will own up to 16 per cent directly once these milestones are met. Independence will own 64 per cent and Baracus the remaining 20 per cent.
The project now spans 4,330 sq km and lies within the West Kimberley region of Western Australia.
Bosnia-focused Adriatic Metals (ASX:ADT) reported strong drill results from its Veovaca deposit. One hole returned a hit of 8.2 per cent zinc and 4.7 per cent lead. Another returned 3.6 per cent zinc and 2.3 per cent lead. “These drill hole results released today continue to demonstrate that the high-grade mineralisation continues north into the new concession area,” executive director Paul Cronin said. The new results will be included in resource update.
New Century Resources (ASX:NCZ) announced record June quarter zinc production of 20,450 tonnes. This was a 12 per cent increase from the March quarter. The company estimates it will produce 23,000-29,000 tonnes of zinc in the September quarter and will double the plant capacity this financial year.
Queensland based Red River Resources (ASX:RVR) also reported strong quarterly production figures — 9,057 tonnes of zinc, 3,369 tonnes of lead and 1,806 tonnes of copper.
Oakajee Corporation (ASX:OKJ) has been granted two licenses for its Northern Territory nickel project. The licences span 1,116 sq km. The area was surveyed earlier this decade by Independence with encouraging results, according to Oakajee. But by Oakajee’s own admission there is insufficient information to say whether or not it is a definitive symbol.