Explorex Resources Inc (CSE:EX) has pushed go on a Nevada-based project and executed the deal to buy 100% of the Buena Vista Hills Cobalt Iron Oxide Copper Gold (IOCG) property, the company told investors.
The assignment agreement is with New Tech Minerals Corp (CSE:NTM) and Explorex will pay to NTM US$10,000 and issue 200,000 shares upon signing.
It will issue a further 200,000 shares upon NTM satisfying certain obligations and assume New Tech's underlying commitments regarding the deal made between New Tech and Zephyr Minerals.
Earlier this month, Explorex said it had completed a positive site visit at Buena Vista and described how its geologists say 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 meters (90 feet) of continuous cobalt mineralization in an oxide cap before it hit the targeted magnetite (iron-oxide) body.
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 meter (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 27.4 meters. 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.
The project lies around 35 km south-east of Lovelock, Pershing County, Nevada, and has excellent road access.
If a feasibility study is completed, New Tech maintains the right to buy back a 20% interest by paying Explorex an amount equal to 40% of the expenditures incurred by Explorex on the pproject.
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