Buxton Resources (ASX: BUX) has two projects in southern Western Australia which it believes have the capability of delivering a world-class discovery. The key drivers for success will be rapid assessment using cost-effective innovative exploration techniques with accelerated funding directed to those projects which meet key decision points and exceed internal technical hurdles.
Buxton Resources (ASX: BUX) has continued recent good news with an exploration target for the Zanthus Magnetite Project in Western Australia of 0.7-1.3 billion tonnes at 22%-32% iron oxide across five prospects.
The target follows strong drill results during the quarter. An initial JORC resource is due for Cohen prospect, part of Zanthus in November / December.
A Scoping Study is scheduled to begin shortly.
The Zanthus project is located a couple of hundred kilometres east of Kalgoorlie.
Zanthus (and Buxton) is blessed with large potential project scale required for magnetite, good metallurgical characteristics and key close proximity to rail infrastructure - reducing capital costs relative to many other magnetite projects.
Zanthus is located just 25 kilometres south of the Trans Australian Railway and just 38 kilometres from the Zanthus Railway Siding and its connection to the Port of Esperance.
Preliminary metallurgical characteristics have also been found likely to result in coarse grind sizes and also imply potential substantial reductions in future capital and operating costs compared to many other magnetite projects.
Imbued with this, there may be potential for early cash flows for Buxton, earlier than most magnetite projects.
Exploration at the five prospects, Cohen, Marley Line, Zappa Dylan Line, Joplin-Hendrix Line and Southern Targets, has been carried out to varying degrees.
In addition, a Davis Tube metallurgical test work program is underway to optimise previous results that produced concentrate grades of 65%-85% iron oxide with low impurities.
At the Cohen prospect, which has an exploration target of 140-210 million tonnes at 26%-32% iron oxide, a total of 3,686 metres of reverse circulation drilling has been completed.
Drilling results show a coherent, wide zone of magnetite mineralisation over a combined strike length of at least 4 kilometres, with iron mineralisation open at depth.
Mining consultancy Runge has been engaged to undertake the Cohen resource estimate, which is expected to be completed in November.
The initial resource is not expected to approach the exploration target size since drilling at Cohen has not penetrated beneath about 150 metres depth on many sections.
At the Zappa-Dylan Line, Buxton is targeting 227-421 million tonnes at 22%-32% iron oxide.
The prospect is represented by a strong magnetic anomaly about 6 kilometres in length.
Drilling to date has confirmed the presence of mineralisation but not adequately tested the magnetic anomalies.
Using ground magnetic data, the thickness of the mineralised zones has been estimated at 30 metres, beneath about 50 metres of unmineralised overburden.
The Marley Line prospect has an exploration target of 151-181 million tonnes at 22%-32% iron oxide, represented by a moderate to strong magnetic anomaly about 4 kilometres in length.
Limited drilling at the prospect has intersected substantial widths of mineralisation near the interpreted antiformal hinge.
Based on ground magnetic and drilling data, thickness of the mineralisation has been estimated at 30 metres.
The Joplin-Hendrix line, with an exploration target of 151-281 million tonnes at 22%-32% iron oxide, is immediately adjacent to the Zappa Dylan Line.
Mineralisation has been estimated at 20 metres thickness but, like Zappa Dylan, is believed to lie under about 50 metres of unmineralised overburden.
Southern Prospects, with an exploration target of 76-140 million tonnes at 22%-32% iron oxide, has a weak to strong group of magnetic anomalies totalling about 9 kilometres strike length.
The prospect is directly along strike from the Joplin-Hendrix and Zappa-Dylan trends.
Although not enough ground geophysical data is available to model the geometries of the zones in detail, the company believes the anomalies could represent similar magnetite mineralisation to those at Joplin-Hendrix and Zappa-Dylan.
The Southern Prospects have not been drilled, however the company has estimated a single 20 metre unit over a 9 kilometre strike length down to 250 metres vertical depth.