Buxton Resources reaps more from Double Magic with new thick nickel-cobalt-copper-PGE intercept

Buxton Resources (ASX: BUX) has pulled up a 40m intersection at its Double Magic project, with numerous higher-grade zones of cobalt, copper, platinum group element and nickel.

The overall 40m intersected graded 1% nickel equivalent from 304m at the Merlin prospect.

However, multiple higher-grade intervals were recorded with notable results of 6.6m at 3.23% nickel equivalent, 1.39% nickel equivalent and 2.98m at 2.40% nickel equivalent.

Separated out the highest individual mineral grades were 7.26% nickel, 1.73% copper, 0.18% cobalt and 11.7 grams per tonne platinum group elements.

According to Buxton, all holes from the recently completed drilling campaign have struck visible nickel-copper sulphide mineralisation.

Meanwhile, a downhole electromagnetic surveying program began last week and aims to pinpoint highly conductive massive nickel-copper sulphides, which will help the company firm up further drill targets.

Buxton is anticipating the survey results from the Conductor J target at Merlin, with mineralisation remaining open and one hole unearthing up to 7.1% nickel in May.

The company anticipates it will drill this conductor further but will await the survey results before deciding its final plan of attack.

Drilling is anticipated to resume in two weeks.

Double Magic nickel-cobalt-copper-PGE project

Buxton acquired Shallow Magic in 2015, with the project covering 93 square kilometres in WA.

Since it acquired Shallow Magic in 2015, Buxton has been actively exploring the tenements.

Last month, Hartleys released a speculative buy rating for Buxton.

Commenting on its rating the company said “Merlin contains all the right ingredients for significant nickel-copper sulphide deposit(s).”

The resources analyst noted that Buxton had a “tight” capital structure with 111 million shares on issue.

Hartleys also pointed out that Buxton has $2.4 million in cash and a “drill for equity” arrangement with DDHH1, which has helped it conserve cash.

Buxton is also eligible to receive the $150,000 grant from the WA Government under its exploration incentive scheme.

The analyst gave Buxton a speculative buy price target of $0.38 per share, which is a 111% gain on the company’s late afternoon Monday trading price of $0.18 and 153% higher than the company’s last closing price of $0.15.