Double Magic Ni-Cu Project Exploration Update

Buxton Resources Limited
  Dear Visitor,

 

ASX Release                                                                                      27th September 2017

DOUBLE MAGIC Ni-Cu project

EXPLORATION UPDATE

 

  • 14m of nickel-copper mineralisation discovered 310m downhole including;
    • 1.7m brecciated massive sulphide
    • 4.6m net-textured
    • >7m disseminated                                                                                     
  • Brecciated massive sulphides confirms  proposed genetic model for presence of a large, high-grade magmatic sulphide
  • Mineralised system continues to grow and open
  • Intersection coincident with previously reported DHEM anomaly
  • Further complex down-hole EM anomalies identified in area
  • Assays pending – expected in coming weeks
  • Geophysical work continuing

 

Figure 1 – Brecciated massive sulphide mineralisation in Ruins Dolerite intersected in DMDD0014, photo is of uncut HQ core, 318.5m to 319m downhole

 

Buxton Resources Limited (ASX: BUX & BUXO) is pleased to provide an update on drillhole DMDD0014, targeting the previously-reported highly conductive DHTEM anomaly identified off hole DMDD0012 (ASX 20/9/17).

 

DMDD0014 has intersected a broad mineralised zone of 14m (from 310m down-hole) that includes 2 metres of brecciated massive Ni-Cu sulphides (Fig 1) and 5 metres of associated net-textured Ni-Cu sulphide mineralisation (Fig 2). This intercept coincides with the previously-reported modelled DHTEM plate off DMDD0012, is approximately 65m down dip/plunge from the stringer and massive sulphide vein intersected in that hole, and is approximately 290m below the topographic surface.

 

With 32 holes now completed in this current program, drilling has been suspended to allow time for receipt of further assays, completion of downhole EM (DHTEM) surveying and modelling, and the approval of further drill pad clearing (POWs).  Due to these variables and the late stage of the 2017 field season, at this stage the Company is unable to advise an immediate likely date for recommencement of drilling.

 

Figure 2 – Net-textured or matrix Ni-Cu sulphide mineralisation in Ruins Dolerite intercepted in DMDD0014, photo is of uncut HQ core, 311.40m to 311.60m downhole

 

For a plan of drill hole locations, see Figure 3. For a cross-section through the centre of Merlin and showing location of brecciated massive sulphides, see Figure 4. A bridged summary log of DMDD0014 is provided as Table 1 and location details of DMDD0014 drill hole is listed in Table 2.

 

 

Figure 3 - Plan of previous and 2017 drillhole locations

 

Figure 4 – Cross-section of the central Merlin area

 

Technical Discussion and Emerging Targets

Massive sulphide Ni-Cu mineralisation has been intersected several times previously at the Merlin Prospect, most notably in August 2015 (DMRC0003). However, this new and substantial intersection in DMDD0014 exhibits the first direct evidence at Merlin of brecciation within a mineralised zone.

The presence of brecciated sulphides indicates forceful injection or re-working of sulphides in a high-energy magmatic environment, something usually considered an essential part of the processes involved in forming large, high-grade magmatic sulphide deposits. This discovery of brecciated sulphides at Merlin is therefore a very strong confirmation of the genetic model, and consequent prospectivity, of the Merlin mineralised system.

High-power DHTEM surveying and modelling is presently being undertaken on DMDD0014 using three differently-configured transmitter loops. Initial results are complex, indicating a conductor or possible series of conductors with complex geometry, orientation, and/or extents.

Given the depth, variable drillhole deviation already noted, and apparent complex geometry and/or orientation of conductors, Buxton has elected to suspend drilling until all possible down-hole surveys have been completed, geophysical modelling is finalised, and results have been assessed in the context of the geological and genetic models.

 

 

Table 1. DMDD0014 Geological log

 

From (m)

To     (m)

Thickness (m)

Mineralisation               description

Sulphides % estimation

sulphide species identified

305

310.8

5.8

disseminated sulphides

1% - 5%

po, cp

310.8

315.4

4.6

net texture

20%-50%

po, pn, cp

315.4

318.1

2.7

disseminated

1% - 5%

po, cp

318.1

319.6

1.5

brecciated

>50%

po, pn, cp

319.6

320.6

1

disseminated sulphides

1% - 5%

po, cp

320.6

320.8

0.2

brecciated/ massive sulphides

>50%

po, pn, cp

320.8

325.6

4.8

disseminated sulphides

1% - 5%

po, cp

 

                                                                                                                                Key:        Pyrite                                      py

                                                                                                                                                Pyrrhotite                               po

                                                                                                                                                Chalcopyrite                         cp

                                                                                                                                                Pentlandite                           pn

 

Table 2, DMDD0014 Drilling Details

Hole Type

Hole ID

Easting

Northing

RL (m)

Azimuth

Inclination

EOH Depth

Diamond

DMDD0014

655584

8126747

102

010

-75

400

 

Figure 4Location of the Double Magic Ni-Cu Project in Western Australia. Also shown is the location of Panoramic’s Savannah Ni-Cu Mine.

 

For further information regarding Buxton Resources Limited please contact:

 

Sam Wright

Company Secretary

sam@buxtonresources.com.au

 

Competent Persons

 

The information in this report that relates to Exploration Results is based on information compiled by Mr. Mark Glassock, Member of the Australasian Institute of Mining and Metallurgy, and Mr. Eamon Hannon Fellow of the Australian Institute of Geoscientists. Mr. Glassock is a Consultant to Buxton Resources Limited and Mr. Hannon is a full-time employee. Mr. Glassock and Mr. Hannon have sufficient experience which is relevant to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2012 edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Glassock and Mr. Hannon consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

 

 

JORC Table: Section 1 – Sampling Techniques and Data

 

Criteria

JORC Code explanation

Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down-hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Early stage exploration drilling at the Double Magic project has been undertaken utilizing a Reverse Circulation Percussion (RC) rig, and an HQ diamond core wireline rig equipped with core orientation equipment.

The drillhole locations are picked up by handheld GPS. Surveying by licensed surveyor will take place at the end of the program, previous drill programs holes have been surveyed by licensed surveyors. Sampling was carried out under Buxton protocols and QAQC procedures are per industry best practice. 

RC drilling was sampled on 1m intervals. A rig mounted cyclone and cone splitter was used to provide a bulk sample and a representative split sample for assay. Core sample lengths vary up to 1 metre, quarter HQ core submitted for analysis.

Samples have been submitted to Intertek Genalysis in Perth for analysis. A standard dry, crush and pulverize was followed by a four-acid digestion finished with ICP-MS for a suite of 48 elements.    

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

The 2017 drilling drill programs are being drilled By Core Drilling.  Reverse Circulation drilling is using a Schramm T685 drilling rig with Auxiliary and Booster using a 150 mm face hammer.  Diamond drilling is using an EDM 2000 truck mounted rig, drilling HQ core from surface. RC hole DMRC0035 was extended with NQ core. All core orientated using a TruCore orientation device on each drill run. All drill holes have been  by downhole gyro to determine accurate hole trajectories.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

The RC ‘s sample recovery and moisture are routinely recorded.  All samples show good recovery and are dry. It is not believed that any bias has occurred due to loss or gain of sample.

All core was measured on-site, recoveries calculated and reconciled with driller’s plods.

 

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

All drill holes are geologically logged in real time by qualified and experienced geologists, recording relevant data to a set template. All logging included lithological features, mineral assemblages and estimated mineralisation percentages. All data was codified to a set of company code systems. All core is orientated, RQD logged, all structural data measured and recorded. All chips and core are photographed.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

All RC 1m intervals were split with a rig mounted cone splitter. All HQ core was sawn at a constant angle to orientation markings, sampled to geological boundaries, up to a maximum of 1 metre in length. Quarter core submitted for assay. Sample preparation is consistent with industry best practice. Field QC procedures involved the use of certified reference material assay standards, blanks and duplicates for company QC measures, and laboratory standards, replicate assaying and barren washes for laboratory QC measures. The insertion rate of each of these QAQC measures averaged 1:20. The sample size is deemed appropriate for the material and analysis method.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

The exploration samples will be analysed at Intertek Genalysis in Perth, Australia. Sample preparation included drying, crushing, splitting and pulverizing. A four acid digest followed by a 48 element MS.  Previous drill used a 4 acid digest with an OE finish and a 25 g fire assay for Pt and Pd.

 

Metallurgical flotation testing was carried out by ALS on three 12 kg samples on ¼ and or ½ core from the 2015 drilling.  Core was crushed and ground to 106um with natural pH with excess collector Sodium Ethyl Xanthate (SEX) and A3477 with MIBC (frother) added as froth stability required.

 

The laboratories procedures are considered to be appropriate for reporting according to industry best practice.

 

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Not applicable.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Not applicable.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Significant mineralisation has been verified by consultants and alternative company personnel.

The use of twinned holes.

Two RC holes for the 2015 drill program (DMRC0003 and 17) have been twinned by HQ diamond core holes DMDD0001 and 2 respectively, confirming mineralisation in both cases. Core has been logged but not sawn for sampling as geological work is ongoing.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All data is collected initially on paper and handheld GPS. This data is hand entered to spread sheets and validated by Company geologists. This data is then imported into the company database and extra validation is carried out. Physical data sheets are stored at the company office. Digital data is securely archived on and off-site.

Discuss any adjustment to assay data.

No adjustments to assay data have been made.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Handheld GPS (+/-5m) as well as reference to topographical and remote sensing data. Drillhole collars from the 2015 drill program were pickup by licensed surveyor.

Specification of the grid system used.

MGA51 (GDA94).

Quality and adequacy of topographic control.

A DEM (digital terrain model) was created from the altimeter data from the aerial magnetic survey and is deemed sufficient for this stage of exploration.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

The current drill program is reconnaissance and step out from the 2015 drilling program, spacing is deemed appropriate for this stage of exploration.

 

Not applicable – No Mineral Resource or Ore Reserve calculations have been performed.

 

The 2015 drilling had some RC composite samples taken in non mineralised material into 2 or 4 metre composites from one metre bags using a spear. No sample compositing has taken place in the 2017 drilling to date.  Metallurgical samples were composite samples from drill core.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Information from orientated core indicates that drillhole orientation is appropriate for disseminated and massive matrix mineralisation.

 

All mineralised intervals are down hole intervals, not true width.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Sample security

The measures taken to ensure sample security.

Samples were packaged and stored in secure storage from the time of gathering through to submission. Laboratory best practice methods were employed by the laboratory upon receipt. Returned pulps will be stored at a secure company warehouse.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No audits of the sampling techniques or data were carried out due to the early stage of exploration. It is considered by the Company that industry best practice methods have been employed at all stages of the exploration.

 

Section 2 – Reporting of Exploration Results

 

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The Double Magic Project is located in the Kimberley region of Western Australia and consists of four exploration licences (E04/1533, E04/2142, E04/2026 & E04/2060) held by Alexander Creek Pty Ltd. Alexander Creek Pty Ltd is a wholly (100%) owned subsidiary of Buxton Resources Limited.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The tenements are in good standing with the DMP and there are no known impediments for exploration on these tenements.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Data used during the appraisal of the Double Magic Project (previously known as the Alexander Creek Project, Clara Hills, Jack’s Hill, Limestone Springs & Maura’s Reward) has been collected by numerous exploration parties, including Alexander Creek Pty Ltd, Victory Mines Limited (ASX:VIC), Proto Resources and Investments Limited (ASX:PRW), and Ram Resources Limited (ASX:RMR). All geophysical data has been independently reviewed by Southern Geoscience Consultants. Any historical data presented has been previously reported under JORC 2004 and there has been no material change.

Geology

Deposit type, geological setting and style of mineralisation.

The Project area lies within the Palaeoproterozoic Hooper Province of the King Leopold Orogen in the Kimberley region of Western Australia. The geology of the Project is characterized by mica schists of the Marboo Formation which are intruded by thick sills of the Ruins Dolerite. The Ruins Dolerite is a medium- to fine-grained mafic-ultramafic intrusive that is host to the known nickel-copper sulphide mineralisation. This mineralisation is interpreted to represent primary orthomagmatic sulphide mineralisation, however there appears to be significant re-working and alteration of the mineralisation in places (in particular at the Jack’s Hill Gossan where the mineralisation is dominated by copper carbonates and contains limited nickel). Importantly the gossan at Jack’s Hill does not have an electromagnetic (EM) signature, whereas the EM targets tested to date all appear to be due to nickel and copper enriched sulphide mineralisation.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

See Tables in body of release.

 

o   easting and northing of the drill hole collar

 

o   elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

 

o   dip and azimuth of the hole

 

o   down hole length and interception depth

 

o   hole length

 

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

 

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

No weighting, truncations, aggregates or metal equivalents were used.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

The relationship between the true mineralisation width and intercept length is not known at this early stage of drilling, however true width of the intercepts in most holes is interpreted to be less than intercept length.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer to figures/tables in body of release.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All currently available exploration results have been reported.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Wireline Services Group have undertaken high powered downhole electromagnetic surveying (DHTEM) over Merlin at the Double Magic Project to assist with drill hole targeting.


DHTEM details
Loop sizes: 500x300m to 1050x1050m single turn

Stn spacing: 5-10m intervals with limited 2m infill

Transmitter: TEX3

Current: 70-80A

Receiver: DigiAtlantis system

Sensor: DigiAtlantis B-field Fluxgate ZXY Probe

Time base/frequency: 500ms time base/0.5Hz base frequency

Stacking/readings: 32-128 stacks, 2-3 repeatable readings

 

All data QAQC checks and modelling efforts have been performed using Maxwell.

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

See text in body of release.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

See modelled conductors in Figures within the text of this report. Additional zones of interest may be established based on geological information (such as drilling or downhole data). Regionally, the extensive land package containing significant exposure of the nickeliferous host lithology the Ruin’s Dolerite are of exploration interest.

 

 
 
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