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Buxton Resources outperforms the ASX, shares climb 26% on the day

Buxton Resources outperforms the ASX, shares climb 26% on the day

Buxton Resources (ASX: BUX) has bucked the market trend, jumping nearly 26% to an intra-day high of A$0.22 on a day when the broader Australian market is down.

The share price increase was spurred on by a high trading volume of 1.5 million shares as of 2.32pm (AEST) today.

Today’s rise maintains the momentum of Buxton’s shares over the past two months, with shares now up 132% since mid-June, when the company was trading at a low of $0.095.

The company has released a couple of announcements since then that have contributed to the upwards trajectory.

In June Buxton announced its foray into the extremely hot graphite market, with the proposed acquisition of an 85% stake in Montezuma Mining Company’s (ASX: MZM) Yalbra Graphite Project in Western Australia.

The company has exercised an option to acquire 85% of the project in exchange for 1 million Buxton shares. 

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 has set an exploration target for the project of between 8 and 12 million tonnes at 7% to 11% carbon.

Meanwhile, the company also revealed earlier this month it had identified multiple nickel targets at its Widowmaker Project, along strike from Sirius Resources’ (ASX: SIR) new Nova discovery in Fraser Range.

Airborne magnetic data indicates that the broad mafic-ultramafic lithological package that hosts the Nova discovery extends north-eastwards into Buxton’s Widowmaker Project area, and corresponds with some of the nickel-copper-platinum group elements calcrete surface anomalies.

Around 20 kilometres of strike length of the favourable lithological host-rock package is interpreted to underlie the Widowmaker Project, which covers an area of about 225 square kilometres.

The exploration licence E28/2201 is currently under application but is expected to be granted by the end of August 2012.

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