Montezuma Mining Company (ASX: MZM) has in excess of 3,000 km2 of exploration tenure in Western Australia, with multi-commodity prospectivity including gold, copper, nickel and uranium targets.
The company's Butcher Bird Project contains the historic Butcher Bird mine, a high grade near surface copper mine which targeted supergene copper mineralisation. The mine has recorded production of 8.46t of copper at an average grade of 22.6%.
Montezuma Mining Company (ASX: MZM) will retain exposure to its Yalbra Graphite Project in Western Australia through a 15% free-carried interest with Buxton Resources (ASX: BUX) exercising an option to acquire 85% of the project.
With demand for graphite heating up, Montezuma has picked a good time to realise the value of its graphite asset, while retaining exposure to the project in the long term.
To settle the deal Buxton will issue 1 million shares, which last traded at around $0.12 valuing the transaction at around $120,000.
Montezuma will retain a 15% free-carried interest up to a decision to mine, following which the company can elect to contribute on a pro-rata basis or dilute to a 1% gross revenue royalty.
Wide, high grade, near surface zones of graphite mineralisation have been identified over 4 kilometres of strike in historical trenches and drilling at Yalbra.
Buxton is planning a field work program to follow up on historical percussion drilling results, which include:
- 16.8 metres at 13.2% carbon from 15 metres, including 6.1 metres at 17.2% carbon;
- 23.5 metres at 19.5% carbon from 9 metres, including 15.2 metres at 25/2% carbon; and
- 39.6 metres at 10% carbon from 3 metres, including 12.2 metres at 23.6% carbon.
Buxton has set an exploration target for the project of between 8 and 12 million tonnes at 7% to 11% carbon.
Montezuma is focused on progressing the Butcherbird Manganese and Copper Project, along with the Peak Hill and Mt Padbury gold projects.
Earlier this year the company announced the successful definition of high grade copper mineralisation over 600 metres of strike at Butcherbird, with potential to extend this along strike and at depth.
Meanwhile, a Scoping Study for the development of the extensive manganese mineralisation at the Butcherbird has identified potential for robust economics.
The Scoping Study projected a net present value of up to A$376 million, with an internal rate of return of up to 59%, based on the Yanneri Ridge JORC Inferred Resource of 64.7 million tonnes at 11.2% manganese.
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