Buxton Resources Sets New Record with Graphite Intersection at Graphite Bull Project
BUX (BUX) Share Update October 2024 Wednesday 23rd
Buxton Resources Announces Record Graphite Intersection at Graphite Bull Project
Buxton Resources Ltd (ASX:BUX) has announced a significant milestone at its Graphite Bull Project in Western Australia, reporting a record-setting graphite intersection that promises to enhance the project's resource potential.
Instant Summary:
- Record 124m @ 16.6% TGC intersection from recent drilling.
- Intersections found outside existing 4Mt Inferred Resource.
- Complete RC assays expected by mid-November 2024.
- Potential for significant resource size increase by December 2024.
Drilling Results and Record Intersection
Buxton Resources has received assays from seven holes of its recent drilling program at the Graphite Bull Project. The standout result was a 124-meter intersection at 16.6% Total Graphitic Carbon (TGC) from 44 meters in drill hole GB012RC. This intersection surpasses the previous project record from 2014, which was 127 meters at 13.4% TGC.
These new intersections are particularly noteworthy as they were discovered outside the existing 4 million tonne Inferred Resource, which is graded at 16.2% TGC with a 7% cutoff.
Future Prospects and Resource Update
Buxton Resources is expecting to receive the remaining RC assays by mid-November, which will pave the way for a Mineral Resource update in December 2024. The company is optimistic about a potential significant increase in the resource size at Graphite Bull.
Preliminary results from structural geologic studies have provided additional confidence in the resource modeling, and rehabilitation works have been completed alongside the collection of bulk samples for ongoing qualification testwork.
CEO's Comments and Strategic Direction
Marty Moloney, CEO of Buxton Resources, expressed confidence in the project's future, citing the thick intersections and excellent continuity of mineralization. He emphasized the company's ongoing efforts to cement its position in the anode material supply chain, with qualification testwork continuing with major anode manufacturers.
The record-setting intersection at Graphite Bull is likely to boost Buxton Resources' stock as it indicates a potential increase in the project's resource size. This could attract more investor interest, particularly given the growing demand for graphite in lithium-ion battery production.
Investor Reaction:
Analysts are expected to react positively to the news, as the record intersection suggests strong potential for resource expansion. The strategic location of the Graphite Bull Project in a Tier 1 mining jurisdiction adds further appeal.
Conclusion:
Investors should keep an eye on Buxton Resources' upcoming Mineral Resource update and consider the potential long-term benefits of the Graphite Bull Project's expansion. The company's efforts to integrate into the anode material supply chain could provide significant opportunities in the growing battery market.