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BUXTON RESOURCES LIMITED Regulatory Filings 2014

Jul 16, 2014

64585_rns_2014-07-16_3a95b613-53f9-4861-8cdd-a0dea159dfd6.pdf

Regulatory Filings

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ASX Release

17[th ] July 2014

GROUND EM SURVEY IDENTIFIES NEW STRONG CONDUCTOR AT ZANTHUS

Highlights

  • Moving loop electromagnetic (MLTEM) survey defines new conductor at Oaktree North

  • Ultramafic rocks containing magmatic Ni-Cu sulphides previously identified at Oaktree South during previous RC drilling program

  • MLTEM response at Oaktree North is stronger than that at Oaktree South and could represent massive or semi-massive Ni-Cu sulphides

  • ~1,000m RC drill program planned to test the newly defined conductor plus additional encouraging anomalies confirmed during Buxton’s maiden Ni-Cu drill program

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Figure 1. Oaktree Prospect (previously ZV10) showing MLTEM lines from 2013 & 2014, location of drill hole ZRC086 that intersected magmatic nickel-copper sulphides, MLTEM Z component Channel 25 (18msec) contours, over MLTEM Z component Channel 34 (125msec) image showing the strong bedrock conductor at Oaktree North.

Summary

In early July, the Company completed a new MLTEM survey to cover the ~1km strike length of the VTEM/MLTEM conductors associated with magmatic nickel-copper sulphides at Oaktree (Figure 1). The survey identified a higher conductivity response to the north that could represent massive or semi-massive nickel-copper sulphides.

PO Box 9028

Suite 1, First Floor 14-16 Rowland Street Subiaco WA 6008

Tel: 08-9380 6063 Fax: 08-9381 4056

www.buxtonresources.com.au [email protected]

Subiaco WA 6008

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Modelling of MLTEM data shows two possible conductor geometries at Oaktree North. The Company plans to test the newly defined conductor(s) at Oaktree with ~1,000m of RC drilling in the coming months. Additional encouraging targets identified during Buxton’s maiden Ni-Cu drilling program in 2014 will also be tested (Figure 2).

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Figure 2. Location of the Oaktree Prospect (ZV10 showing hole ZRC086) with 2014 RC drill-holes over airborne magnetics with gravity and EM features indicated.

MLTEM Modelling and Interpretation

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In 2013, a moderately conductive, large depth extent conductor (ZV10) was modelled from a single MLTEM line. Hole ZRC086 tested this target and intersected ultramafic rock with abundant magmatic blebs of composite pyrrhotite, pentlandite and chalcopyrite. This encouraging intersection was followed up with a 13.6 line km MLTEM program in early July, 2014.

Results of the combined 2013 and 2014 MLTEM surveys show a moderately conductive zone centred on line 6530150mN, where it was drill tested with ZRC086 (Figure 1). However, the new MLTEM data has detected a more highly conductive target to the north of the original ZV10 target (Figure 1) which may represent semi-massive or massive Ni-Cu sulphides, or other strongly conductive minerals.

Two alternative models fit the MLTEM data at Oaktree North (Figure 3). These models have been utilized during drill hole planning for the upcoming RC drill program at Zanthus.

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Figure 3. Oblique view of both MLTEM models (single plate model in red, two plate models in blue and green) at Oaktree North with proposed drill-holes and expected down-hole pierce points.

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Project Overview

The planned drill program at Zanthus will primarily target the newly defined MLTEM anomaly at Oaktree North. The previous drilling, geophysical and geochemical surveys at Zanthus show a very large, ultramafic-mafic system that is “live” and highly prospective for economic nickelcopper sulphide mineralisation. Important features of this system include;

  • Located in Proterozoic orogen in close proximity to major, crustal scale shear zone and broadly along strike from world class Nova-Bollinger discovery

  • Very large ultramafic-mafic system with significant geological complexity and numerous smaller dyke and/or sill-like bodies

  • Sulphur-rich country rocks to potentially contribute to sulphur saturation of ultramaficmafic rocks

  • Ultramafic rock with petrographically verified, abundant magmatic blebs of composite pyrrhotite, pentlandite and chalcopyrite

  • Numerous thick intercepts in drill-holes of ultramafic to mafic (gabbro) rocks with weak to strongly disseminated sulphides (mainly pyrrhotite).

For further information regarding Buxton Resources Limited please contact:

Anthony Maslin Managing Director [email protected]

Competent Persons

The information in this report that relates to exploration results is based on information previously compiled and/or reviewed by Dr Julian Stephens, Member of the Australian Institute of Geoscientists and Non-Executive Director for Buxton Resources Limited. Dr Stephens has sufficient experience which is relevant to the activity previously undertaken to qualify as a “Competent Person”, as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in this report of the matters reviewed by him in the form and context in which they appear. The exploration results in this report were previously reported to the ASX on the 14th of May 2014. No material change to the results has occurred.

The information in this report that relates to geophysical results and interpretation is based on information compiled and interpreted by Southern Geoscience Consultants Pty Ltd under the supervision of Mrs. Anne Tomlinson, a Principal Geophysicist and full time employee of Southern Geoscience Consultants, who reviewed he electromagnetic survey interpretation. Mrs. Tomlinson is a Member of the Australian Institute of Geoscientists and has sufficient experience relevant to the type of activity being undertaken to qualify as a “Competent Person”, as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consents to the inclusion in this report of the matters reviewed by her in the form and context in which they appear.

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Appendix: JORC code tables and commentary

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling
techniques
Nature and quality of sampling (eg cut
channels, random chips, or specific specialised
industry standard measurement tools
appropriate to the minerals under
investigation, such as down‐hole gamma
sondes, or handheld XRF instruments, etc).
These examples should not be taken as
limiting the broad meaning of sampling.
Exploration at the Oaktree Prospect
(Zanthus Project) consisted of 13.6 line
kilometers of Moving Loop
Electromagnetic (MLTEM) Survey
Include reference to measures taken to ensure
sample representivity and the appropriate
calibration of any measurement tools or
systems used.
At least two readings were taken at
taken at each station to ensure data
repeatability.
Quality assurance and quality control of
the MLTEM data was independently
verified by Southern Geoscience
consultants in Perth.
Aspects of the determination of
mineralisation that are Material to the Public
Report. In cases where ‘industry standard’
work has been done this would be relatively
simple (eg ‘reverse circulation drilling was
used to obtain 1 m samples from which 3 kg
was pulverised to produce a 30 g charge for
fire assay’). In other cases more explanation
may be required, such as where there is
coarse gold that has inherent sampling
problems. Unusual commodities or
mineralisation types (eg submarine nodules)
may warrant disclosure of detailed
information.
MLTEM Survey Particulars
Line spacing: 200m
Station spacing: 100m
Transmitter loop size: 200m x 200m
Receiver: SMARTem 24
Transmitter: TX‐50
Current: 35 Amp
Base Frequency: 1Hz
Sensor: Fluxgate B‐field
Components: Bz, Bx, By
Drilling
techniques
Drill type (eg core, reverse circulation, open‐
hole hammer, rotary air blast, auger, Bangka,
sonic, etc) and details (eg core diameter,
triple or standard tube, depth of diamond
tails, face‐sampling bit or other type, whether
core is oriented and if so, by what method,
_etc). _
Not applicable ‐ no drilling was
conducted
Drill sample
recovery
Method of recording and assessing core and
chip sample recoveries and results assessed.
Not applicable ‐ no drilling was
conducted
Measures taken to maximise sample recovery
and ensure representative nature of the
samples.
Whether a relationship exists between sample
recovery and grade and whether sample bias
may have occurred due to preferential
loss/gain of fine/coarse material.
Logging Whether core and chip samples have been
geologically and geotechnically logged to a
level of detail to support appropriate Mineral
Resource estimation, mining studies and
metallurgical studies.
Not applicable ‐ no drilling was
conducted
Whether logging is qualitative or quantitative
in nature. Core (or costean, channel, etc)
photography.
The total length and percentage of the
relevant intersections logged.
Sub‐sampling
techniques and
sample
preparation
If core, whether cut or sawn and whether
quarter, half or all core taken.
Not applicable ‐ no drilling was
conducted
If non‐core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet or
dry.
For all sample types, the nature, quality and
appropriateness of the sample preparation
technique.
Quality control procedures adopted for all
sub‐sampling stages to maximise
representivity of samples.
Measures taken to ensure that the sampling
is representative of the in situ material
collected, including for instance results for
field duplicate/second‐half sampling.
Whether sample sizes are appropriate to the
grain size of the material being sampled.
Quality of assay
data and
laboratory tests
The nature, quality and appropriateness of
the assaying and laboratory procedures used
and whether the technique is considered
partial or total.
Not applicable ‐ no assay data or
laboratory tests performed
For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the analysis
including instrument make and model,
reading times, calibrations factors applied
and their derivation, etc.
Not applicable ‐ no assay data or
laboratory tests performed
Nature of quality control procedures adopted
(eg standards, blanks, duplicates, external
laboratory checks) and whether acceptable
levels of accuracy (ie lack of bias) and
precision have been established.
Not applicable ‐ no assay data or
laboratory tests performed
Verification of
sampling and
assaying
The verification of significant intersections by
either independent or alternative company
personnel.
All geophysical data collected was
reviewed by an independent consultant
The use of twinned holes. Not applicable ‐ no drilling was
conducted
Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.
All primary electromagnetic digital data
were recorded with a SmarTEM24
receiver by Outer Rim Exploration. Data
were electronically transferred by email
to Southern Geoscience Consultants for
independent evaluation and have been
securelyarchived.
Discuss any adjustment to assay data. Not applicable ‐ no assay data
Location of data
points
Accuracy and quality of surveys used to locate
drill holes (collar and down‐hole surveys),
trenches, mine workings and other locations
used in Mineral Resource estimation.
Handheld GPS used for
receiver/transmitter locations
Specification of the grid system used. MGA51 (GDA94)
Quality and adequacy of topographic control. The expected accuracy is +/‐ 5m for
easting and northing and 10m for
elevation which is considered
sufficiently accurate for this type of
geophysical survey.
Data spacing and
distribution
Data spacing for reporting of Exploration
Results.
Line spacing: 200m. Station spacing:
100m. Transmitter loop size: 200m x
200m. See Figure 1 for geographical
representation of MLTEM lines and
stations
Whether the data spacing and distribution is
sufficient to establish the degree of geological
and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation
procedure(s) and classifications applied.
Not applicable at this stage of
exploration, no Mineral Resource or Ore
Reserve
Whether sample compositing has been
applied.
Not applicable ‐ no assay data
Orientation of
data in relation
to geological
structure
Whether the orientation of sampling achieves
unbiased sampling of possible structures and
the extent to which this is known, considering
the deposit type.
MLTEM data were collected
perpendicular to the geological strike
and sufficiently define the EM anomaly
for modelling.
If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to have
introduced a sampling bias, this should be
assessed and reported if material.
Not applicable ‐ no drilling was
conducted
Sample security The measures taken to ensure sample
security.
Not applicable ‐ no physical samples
taken
Audits or reviews The results of any audits or reviews of
sampling techniques and data.
All geophysical data collected were
reviewed by independent geophysical
consultants Southern Geoscience
Consultants. Several sources of
conductors in the bedrock are possible,
including but not limited to:
concentrations of massive sulphide,

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graphite, conductive clays, saline groundwater etc. Models of conductive sources are made from a combination of measured data and assumptions made according to industry best practice. The resultant models should therefore be considered a “best estimate” of the conductive sources, and not definitive characterization

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral tenement
and land tenure
status
Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or
national park and environmental settings.
The Zanthus Project is located in
Western Australia and consists of one
exploration licence (E28/1959) held by
Buxton Resources Ltd (Buxton). Buxton
has a 100% interest in the tenement
The security of the tenure held at the time of
reporting along with any known impediments
to obtaining a licence to operate in the area.
The tenement is in good standing with
the DMP and there are no known
impediments for exploration on this
tenement
Exploration done
by other parties
Acknowledgment and appraisal of exploration
by other parties.
No other parties were involved in this
exploration program
Geology Deposit type, geological setting and style of
mineralisation.
Overall, the geology of the project area
is very complex. However, it has now
been confirmed to contain large,
gabbro‐dominant, ovoid, mafic‐
ultramafic bodies that variably daylight
and are locally capped by country rock
paragneisses (derived from sedimentary
parent rocks). Numerous thinner
intercepts of gabbro that occur around
the margins of the ovoid bodies and
within paragneiss caps indicate a high
density of associated smaller mafic‐
ultramafic bodies, possibly as dykes
and/or sills
Drill hole
Information
A summary of all information material to the
understanding of the exploration results
including a tabulation of the following
information for all Material drill holes:
Not applicable ‐ no drilling was
conducted
o_easting and northing of the drill hole collar_
o_elevation or RL (Reduced Level – elevation_
above sea level in metres) of the drill hole
collar
o_dip and azimuth of the hole_
o_down hole length and interception depth_
o_hole length_
If the exclusion of this information is justified
on the basis that the information is not
Material and this exclusion does not detract
from the understanding of the report, the
Competent Person should clearly explain why
this is the case.
Data aggregation
methods
In reporting Exploration Results, weighting
averaging techniques, maximum and/or
minimum grade truncations (eg cutting of
high grades) and cut‐off grades are usually
Material and should be stated.
Not applicable ‐ no drilling was
conducted
Where aggregate intercepts incorporate short
lengths of high grade results and longer
lengths of low grade results, the procedure
used for such aggregation should be stated
and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship
between
mineralisation
widths and
intercept lengths
These relationships are particularly important
in the reporting of Exploration Results.
Not applicable ‐ no drilling was
conducted
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (eg ‘down hole length,
true width not known’).
Diagrams Appropriate maps and sections (with scales)
and tabulations of intercepts should be
included for any significant discovery being
reported. These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Refer to figures in the body of the text
Balanced
reporting
Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
Not applicable ‐ no drilling was
conducted
Other substantive
exploration data
Other exploration data, if meaningful and
material, should be reported including (but
not limited to): geological observations;
geophysical survey results; geochemical
survey results; bulk samples – size and method
of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
The geophysical anomalies are
identified on figures and discussed in
the body of text.
The Company now has a large and
detailed dataset including surface
geochemistry, magnetics, gravity, EM,
drilling and petrography. Details of
previous work are provided in previous
ASX announcements
Further work The nature and scale of planned further work
(eg tests for lateral extensions or depth
extensions or large‐scale step‐out drilling).
On‐going work programs at the Zanthus
Project are currently being reviewed,
however the top priority is to drill the
newly defined strong MLTEM Ch34
conductor at Oaktree North (as
discussed in text)
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
See interpreted conductors and planned
drill holes on Figures 1 & 3 within body
of release, plus additional zones of
interest in Figure 2