Explorex to acquire cobalt project in Nevada
Canada’s Explorex Resources (CSE: EX) announced that it wants to buy New Tech Minerals’ (CNSX: NTM) Buena Vista Hills cobalt – iron oxide – copper-gold project, located in Pershing County, Nevada.
In a press release, Explorex said Buena Vista Hills seems to be a unique opportunity and setting for a large scale near surface cobalt target.
In order to buy the property, the Vancouver-based miner entered into a Letter of Intent with the seller for a 100% interest. To complete the acquisition, Explorex has to make a $10,000 cash payment and issue a cumulative 400,000 shares in Explorex to New Tech pursuant to the execution of a definitive agreement and New Tech satisfying certain obligations, such as fulfilling underlying commitments pursuant to the Mining Lease and Option to Purchase Agreement it made with Zephyr Minerals back in 2018.
New Tech also has to maintain underlying cash payments and share issuances to Zephyr but, in compensation, Explorex is required to mirror the Zephyr Option by making commensurate cash payments and issuing an equivalent value of Explorex shares to New Tech.
Explorex is also expected to spend $700,000 in exploration activities at Buena Vista Hills.
The project is situated approximately 35 kilometres southeast of the town of Lovelock and it is centered around the past producing Segerstrom-Heizer iron ore open pit mine, whose output reached 1.2 million tonnes of iron ore between 1943 and 1966. There are also four additional smaller past operating open pits in the immediate vicinity.
According to Explorex, subsequent to the emplacement of the magnetite, an intense ‘Cobaltoan’ pyrite-marcasite sulfide mineralizing event occurred in the project area. Thus, there is Cobaltoan iron-sulfide deposition focused along the hanging wall and footwall margins of the massive magnetite body.
“The potential of the ‘at surface’ oxidized zone was revealed in a reverse circulation drill hole completed by the property owner, Zephyr Minerals, in 2008. The Zephyr Hole was located approximately 100 m northeast of the main exposed mineralized zone at the NE pit wall and drilled vertically with fixed 3.05 m sample intervals. The cobalt mineralization was intersected under the mine waste at a 6.1 m depth and graded 0.09% CoO over 27.4m. This interval included 12.2m grading 0.12% CoO from 12.2-24.4m,” the company’s press brief reads.
Explorex says that the significant cobalt mineralization reported in the Zephyr Hole combined with the cobalt mineralization observed in grab samples quite distant from the Zephyr Hole indicates the potential for a large at surface cobalt mineralized target area along the extent of the magnetite body and the area’s Segerstrom-Heizer fault.