Explorex Resources Inc (CSE:EX) is pushing ahead to buy the Buena Vista Hills Cobalt -- Iron Oxide Copper Gold (IOCG) project in Nevada from New Tech Minerals Corp following a positive site visit, it reported Thursday.
The firm's geologists have decided Buena Vista is one of just a few properties in the world that hosts this scale of stand-alone cobalt mineralization.
Drilling by the owner a decade ago showed 27.4 metres (90 feet) of continuous cobalt mineralization in an oxide cap before it hit the targeted magnetite (iron-oxide) body.
READ: Explorex Resources planning initial drilling at Nevada project as it sorts out portfolio priorities for 2019
Explorex noted that the depth extent of the oxide cap could easily be seen in the historic pit walls and is reported to extend to at least a 50 metre (164 foot), underlining the potential for a "rather sizable volume of 'at Surface' material", the firm said. The potential of an 'at surface' oxidized zone at the property was revealed in a reverse circulation (RC) drill hole completed by the owner Zephyr Minerals in 2008.
The cobalt mineralization was hit under the mine waste at a 6.1 meter depth and graded 0.09% cobalt oxide over 27.4m.
Meanwhile, last year, New Tech collected two magnetite grab samples exhibiting significant pyrite replacement from the open pit waste dump that graded 0.15 and 0.48% cobalt. The samples collected from the dump material revealed a high cobalt tenor and emphasizes the potential for a sizable near surface cobalt iron sulfide mineralized zone below the oxidized cap.
Excellent road access
Buena Vista lies around 35 km south-east of Lovelock, Pershing County, Nevada, and has excellent road access.
As previously reported, to complete the deal, Explorex must make a $10,000 cash payment and issue a cumulative 400,000 shares to New Tech following a definitive agreement and New Tech satisfying certain obligations.
It must also spend US$700,000 on exploration by May 15, 2022.
Shares in Explorex in Canada eased 1.92% to $0.26.
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