Explorex Resources Inc (CSE:EX), the energy metals focused group, told investors Tuesday that it will focus its efforts on the Buena Vista Hills iron oxide copper gold (IOCG) project in Nevada and Kagoot Brook site in Canada in 2019.
And the firm is wasting no time as it also revealed it is planning an initial drill program at Buena Vista consisting of three reverse circulation (RC) holes on private land, which requires no permitting.
READ: Explorex Resources set to buy 100% of Nevada property, which could host large near surface cobalt target
The aim of this work is to confirm previously reported cobalt grades and the extent of mineralization, the group said in a statement.
Last month, the company inked a letter of intent with New Tech Minerals Corp over an option to acquire 100% of Buena Vista.
The project is centered around the past-producing open-pit Segerstrom-Heizer (SH) iron ore mine that produced more than 1.2 million tons between 1943 and 1966 and this initial drilling is designed to target the cobalt mineralization observed near the open pit here.
A significant amount of Cobaltoan iron-sulfide mineralization is exposed in the open pit walls and within the waste dumps, presenting two distinct targets - both of which are near surface.
The potential of an 'at surface' oxidized zone 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, said Vancouver-based Explorex in Monday's statement.
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.
Further holes planned
Further drill holes are planned at Buena Vista and Explorex plans to obtain permits for these holes which are on US Bureau of Land Management (BLM) Lands for this phase 1 program.
As previously reported, to complete the acquisition, Explorex must pay $10,000 in cash 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, 2021.
After reviewing the portfolio, the firm decided to concentrate on the Buena Vista Hills and Kagoot Brook (New Brunswick) projects and will drop the Cobalt-Paragon (Ontario), Chrysler (Ontario) and Handlebar (British Columbia) projects.
"The Buena Vista Hills and Kagoot Brook projects provide a combination of exceptional upside and size potential that fits well with corporate objectives and what the Company perceives can provide greater impact in the market," it said.
Also on Tuesday, Explorex said that Clarmin Exploration Inc (Clarmin) has terminated its option to acquire a 100% interest in the polymetallic Arlington project, which lies around 67km south of Kelowna, BC, and it has been returned to the firm's property portfolio.
The firm expects to realize a value add from the returned asset.
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