Buxton Resources (ASX:BUX) has released assay results from the first diamond drillhole at the Dogleg Prospect in the West Kimberley Project, Western Australia, revealing high-grade nickel and cobalt sulphides, prompting conditional payments and underscoring the Project’s substantial potential.
Impressive Assay Results
The highlight of the recent exploration effort is the assay results from the first diamond drillhole, 23WKDD003, at the Dogleg Prospect.
The drillhole penetrated 13.85 metres (true width 13.24 metres) of mineralisation, yielding impressive grades of 4.35% Ni, 0.34% Cu, and 0.15% Co, starting from a depth of 177.34 metres.
This noteworthy intercept also includes a subsection of 5.86 metres (true width 5.60 metres) boasting even higher concentrations of 7.47% Ni, 0.31% Cu, and 0.25% Co, commencing at a depth of 179.08 metres.
This success indicates the potential for a high-grade nickel and cobalt resource within the West Kimberley Project, marking a significant milestone in the exploration and development of the area.
Table 1: Dogleg Prospect Significant Drill Intersections. Relationship of intercept length to estimated true width is 95.6% for 23WKDD003.
Electromagnetic Survey Enhances Prospects
In addition to the impressive assay results, the downhole electromagnetic (DHEM) survey conducted on drillhole 23WKDD003 showed strong in-hole responses.
The survey also identified additional focus areas outside the original moving-loop electromagnetic (MLEM) conductor, with this finding opening up new avenues for potential follow-up drilling, increasing the prospect’s allure for further exploration.
Figure 1: 23WKDD003 at 179.1 m – massive sulphide mineralisation with visually logged Ni and Cu sulphides (refer to BUX ASX announcement 4th October 2023).
Future Prospects and Conditional Payments
The promising results from the first diamond drillhole have triggered a conditional payment of $500,000 from joint venture partner IGO to Buxton Resources, enhancing the financial strength of the Project.
This payment comes in addition to the $2.35 million at the end of the last quarter, demonstrating a strong commitment to further exploration and development.
Buxton Resources CEO Marty Moloney expressed enthusiasm about these developments, highlighting the potential for the West Kimberley Project to host Nova-Bollinger style nickel sulphide deposits.
He emphasised the importance of these high-grade nickel and cobalt findings, making them notoriously difficult to find.
The Dogleg Prospect is strategically located within tenement E04/1972 of the Quick Shears Project, with a focus on Nova-style magmatic Ni-Cu sulphide mineralisation.
This area’s potential was initially identified based on magnetic data, suggesting it shares similarities with the magnetic features associated with the Merlin Ni-Cu-Co Prospect.
Figure 2: Location of Dogleg Prospect in relation to the Merlin Ni-Cu-Co Prospect.
The drilling program focused on a 280 by 75-metre conductor identified through MLEM geophysical surveys conducted in 2022.
The next phase of exploration includes the anticipation of lab assay results from 23WKDD004 within the next three to seven weeks. Subsequently, these findings will pave the way for defining a program of work, potentially encompassing additional drill testing at the Dogleg Prospect in 2024.
Buxton Resources CEO Marty Moloney commented the Buxton and IGO technical teams are extremely excited to report high grade nickel and cobalt mineralisation in sulphides from the first diamond hole at the Dogleg Prospect within our West Kimberley Project JV.
“This result, along with previous exploration success at the Merlin Prospect, validates our view that the West Kimberley Project has the potential to host Nova-Bollinger style nickel sulphide deposits,” he said.
“Such deposits are notoriously difficult to find but the success of the first two diamond holes at Dogleg, combined with highly anomalous down-hole EM responses, provide Buxton and our JV partner IGO with enormous encouragement.”
“We look forward to reporting the assays from the second hole in this program and hope to build on this momentum with future drilling programs designed to fully reveal the emerging exploration potential at Dogleg.”
BUX’s Australian Stock Exchange-listed share price has risen 31.71% today and is currently trading at 27 cents (10.30am UTC+ 8 hours).