Buxton Resources (ASX:BUX) share price explodes 52% on copper update

Buxton Resources shares are having a day in the sun today.

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The Buxton Resources Limited (ASX: BUX) share price is one of the best performers on the ASX today. This comes after the company announced an update regarding its Copper Wolf Copper Project in Arizona, United States.

At the close of trade, Buxton Resources shares finished up 52.17% to 10.5 cents. That’s after topping out at 13 cents, up a whopping 88%, just before midday.

What did Buxton Resources announce?

In its release Buxton Resources advised it has completed its compilation and verification of data for the Copper Wolf project.

As such, the company revealed that the site hosts large Laramide porphyry deposits extending over 4 x 1.5-kilometre areas. Historical resource estimates include a JORC (2007) inferred resource for a portion of the zone reported by Liontown Resources Limited (ASX: LTR):

  • 108 Mt at 0.8% Copper (Cu) and 0.03% Molybdenum (Mo) for 864,000 tonne of contained copper metal plus 32,400 tonne of molybdenum metal
  • 40.3 Mt at 1.4% Cu and 0.035% Mo to 564,200 tonne of contained copper metal plus 14,000 tonne of molybdenum metal

However, giving rise to the Buxton Resources share price was that the company’s analysis was based on the historical estimate. It noted that about 74% of the above results lies within its tenure.

The project was previously hampered by a post mineral volcanic cover sequence. This places the mineralisation at a depth of between 400 metres to 550 metres below ground level.

Nonetheless, Buxton Resources highlighted that the project displays several positive attributes. They include excellent grades, further exploration potential, and low holding costs of around $20,000 per annum.

About the Buxton Resources share price

It’s been a solid year for Buxton Resources shares, achieving gains of almost 70% for 2021. However, when zooming out, its shares have travelled close to 17% higher in the last 12 months. The company’s shares reached a 52-week high of 15.5 cents in July, before profit-takers swooped in.

Based on today’s price, Buxton Resources commands a market capitalisation of roughly $9.38 million, with approximately 136 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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