What the Brokers Say
WHAT THE BROKERS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.hartleys.com.au
Buxton Resources Limited (ASX: BUX)
Magmatic nickel-copper sulphide intersected at Zanthus
Buxton Resources recently completed RC drilling at the Zanthus project in the Fraser Range, confirming the presence of highly prospective mafic/ultramafic rocks and more importantly identified magmatic nickel-copper sulphide mineralisation through petrology and assay results.
No ore-grade intervals were reported but two holes returned nickel values around 0.12 per cent nickel within ultramafic rocks while testing conductive targets located within three kilometres of one another.
Prior to further exploration BUX plans to undertake a full technical review of the data collected over the project area.
Results to date clearly warrant further work in and around targets ZV10 and ZV07, which could involve more detailed geophysical surveys (magnetics and/or electromagnetics (EM)) and more drilling.
Western margin of intrusive structure upgraded by drilling
The aim of the first pass drilling program was to test 20 bedrock conductors originally identified through airborne EM surveys but followed up with ground EM prior to drilling.
A vast majority of the conductors tested were explained by graphitic rocks or iron sulphide accumulations, considered to be of low interest for magmatic nickel-copper mineralisation; however, the drilling of six targets intersected gabbro (mafic) and ultramafic rocks considered to be priority hosts.
Five of the six holes which intersected gabbro and/or ultramafic rocks are located along the western margin, a large interpreted intrusive structure which spans over 10kms of strike.
This zone or corridor may provide a focus for future exploration.
Target ZV10 – large conductor with confirmed nickel mineralisation
Out of all the drill results reported the standout hole is ZRC086, which returned 4m at 1,219ppm (0.12 per cent) nickel, 114ppm copper from 96m, contained within a 12m zone of ultramafic host rock.
The hole was drilled to test conductive target ZV10, defined by as strong conductor, coincident to some low tenor nickel geochemical anomalism.
The target has a north-south orientation and an approx. 1km strike extent, and was previously considered to be a moderate priority anomaly.
Petrographic analysis of the mineralised zones (from 96-100m) identified “definitively magmatic sulphide blebs of inter-grown iron sulphide (pyrrhotite), nickel sulphide (pentlandite) and minor copper sulphide (chalcopyrite) from within ultramafic”.
Fraser Range still the hottest address for nickel
The Zanthus project has been upgraded by the confirmation of magmatic nickel-copper sulphide mineralisation, but further work will be required to locate potential higher grade zones of mineralisation.
That Buxton has highly prospective ground within the Fraser Range has been validated by the drilling.
A full technical review will determine the level of next exploration within the project area.
Greenfield nickel exploration remains high risk but can be highly rewarding, especially within the Fraser Range.
Buxton has a tight capital structure, low market cap of around $12 million (EV of approx. $10 million), and has now confirmed magmatic nickel sulphides, which could translate to discovery success.
Website: www.breakawayresearch.com
Adelaide Resources (ASX: ADN)
All the hallmarks of a major copper discovery
Shallow aircore drilling at the Alford West prospect in South Australia has continued to return some of the most impressive drill intersections seen from any exploration company in recent times.
Four defined ‘zones’ of higher grade copper mineralisation have been modelled with each zone still open at depth.
A deeper drill program is planned for the second half of 2014 which will better quantify the known mineralisation and test likely depth extensions, whilst also providing a strong opportunity for a market re-valuation of the company.
Adelaide Resources continues to steadily advance its flagship Moonta project, located at the southern end of the ‘Olympic Copper Gold Province’ in the Moonta-Wallaroo district of South Australia’s Yorke Peninsula.
An extensive shallow aircore drill program targeting the previously defined 3.5 kilometre Alford West geochemical anomaly has now been largely completed.
Multiple impressive intersections have continued to flow following early standout hits of 20m at 4.2 per cent copper and 0.27g/t gold from 32m, and 45m at 1.56 per cent copper and 1.83g/t gold from 13m.
While these highlights often attract short lived market attention, it is the ‘big picture’ which appears to have been overlooked: Alford West is demonstrating all the hallmarks of a major discovery.
Adelaide has now defined four target zones which appear likely to contribute towards an eventual mineral resource.
While shallow aircore drill holes have been completed over these zones (with economic grades and widths reported), they are yet to be adequately tested below approx. 100 metres.
Evidence from nearby historical drill holes (and other deposits within the region) indicates that mineralisation commonly continues to significant depths.
The potential size of the Alford West prospect should not be underestimated.
The combined strike length now exceeds 3km with deeper RC and diamond drill programs set to begin testing the depth extent in the second half of 2014.
Positive news flow will likely soon follow providing significant opportunity for a company re-rating as the potential scale of the system is realised.
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.
The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.
The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.