Buxton Faces Funding Pressure Despite Strong Exploration Results
Buxton Resources reports robust drilling results at its Graphite Bull and Narryer projects, completes Stage 1 earn-in on Copper Wolf JV with IGO, and undertakes key board changes, positioning itself for an active 2025 exploration season.
- IGO completes Stage 1 earn-in, securing 51% of Copper Wolf JV
- Graphite Bull Project delivers high-grade assay results up to 37.3% TGC
- Narryer Project confirms significant graphite intersections with up to 9.06% TGC
- Strategic placement raises approximately AUD $600k to fund exploration
- Board refresh includes appointment of IGO-nominated director and search for new Chairman
Strong Momentum at Graphite Bull and Narryer Projects
Buxton Resources Limited (ASX: BUX) has reported a productive quarter ending December 2024, highlighted by exceptional drilling results at its flagship Graphite Bull Project in Western Australia. Assays from recent reverse circulation (RC) drilling revealed impressive high-grade graphite intersections, including 124 meters at 16.6% total graphitic carbon (TGC) starting from 44 meters depth, and a standout 10 meters at 37.3% TGC. These results underscore the project's potential to significantly expand its existing 4.0 million tonne inferred resource.
Meanwhile, the Narryer Project, also in Western Australia and wholly owned by Buxton, confirmed substantial graphite mineralisation with a 60-meter intersection grading 4.34% TGC, including a high-grade 20-meter section at 9.06% TGC. This discovery opens a new province-scale graphite play with a prospective strike length of 19.1 kilometers, positioning Buxton as a key player in the graphite sector.
Copper Wolf JV: IGO Earns 51% Stake
In Arizona, the Copper Wolf Joint Venture with IGO Limited reached a critical milestone as IGO completed the Stage 1 earn-in by spending AUD $350,000, thereby earning a 51% interest in the JV tenements. This progress validates the JV’s strategy to explore the largely underexplored Laramide porphyry copper-molybdenum system concealed beneath post-mineral cover. Buxton retains a 49% interest with IGO holding an option to increase to 70%, reflecting strong partner confidence in the project’s upside potential.
Additionally, the JV agreed to purchase a 33.62-acre surface parcel from Buxton, providing essential access and infrastructure rights and injecting AUD $257,000 in cash into Buxton’s coffers.
Advancing Testwork and New Project Developments
Buxton is progressing downstream qualification testwork on Graphite Bull ore with major anode manufacturer BTR, including spheroidisation and purification processes tailored for lithium-ion battery applications. Results from this program are anticipated in early 2025, potentially paving the way for commercial partnerships.
In the USA, Buxton is advancing the Matrix manganese project in Arizona, targeting maiden drilling in 2025 following a recent drone magnetic survey and permitting activities. The company also executed a Land Access and Mineral Exploration Agreement for its Royale and Shogun projects in Western Australia, setting the stage for exploration in 2025.
Corporate and Financial Position
Buxton completed a strategic placement in November 2024, raising approximately AUD $600,000 to support ongoing exploration and resource development. The company ended the quarter with a cash balance of around AUD $1.1 million, maintaining sufficient liquidity to fund its near-term activities.
On the governance front, Buxton refreshed its board with the retirement of two directors and the appointment of Jared Jacob, nominated by IGO, as a non-executive director. The company is actively searching for a new Chairman to complement the board’s expertise and guide the company through its next growth phase.
Exploration expenditure for the quarter was AUD $807,000, focused primarily on drilling programs and heritage surveys, reflecting disciplined capital deployment aligned with project milestones.
Outlook
With a robust pipeline of projects across graphite, copper, nickel, and manganese, Buxton is well-positioned to deliver further exploration success in 2025. The upcoming resource upgrade at Graphite Bull and ongoing testwork results will be key catalysts to watch, alongside developments in the Copper Wolf JV and new project advancements in both Australia and the USA.
Bottom Line?
Buxton’s solid drilling results and strategic partnerships set the stage for a pivotal year ahead, but funding and exploration execution remain critical to watch.
Questions in the middle?
- Will the upcoming Graphite Bull resource upgrade materially increase the project’s scale and grade?
- How will IGO’s option to increase its stake in Copper Wolf influence Buxton’s strategic direction?
- What are the timelines and expected outcomes for maiden drilling at the Matrix manganese project?