Summary & Highlights for the
Quarter
Highlights:
Esperance Port expansion approved
Several potential JV parties commenced due diligence
ZanthusScoping Study continues
Marketing Study commissioned
ABN: 86125049550 ASX Code: BUX, BUXO Frankfurt: 3B4.F Share Price: 0.13 Shares on Issue: 40.1M No of listed options: 4.0M Market Cap: 5.2M Cash at Bank: $1.4M
Contact Details 50 Derby Road, Subiaco WA 6008 PO Box 9028, Subiaco WA 6008 Tel: 08 9380 6063 Fax: 08 9381 4056 Email: [email protected] www.buxtonresources.com.au
Directors Seamus Cornelius Chairman Anthony Maslin Managing Director Julian Stephens Non-Executive Director
Joint Company Secretaries Sam Wright Jodi Haslinger
Quarterly Activities Report
For the three months ending March 2012
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Zanthus Project E28/1957, E28/1959 (100% Buxton)
Figure 1: Zanthus Project location.
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SUMMARY
PROJECT LOCATION
The Zanthus Project is located 200 kms east of Kalgoorlie, 25 kms south of the Trans Australian
Railway (1), and 35 kms south south east of the existing Zanthus rail siding (2), (Figure 1).
The rail line from Zanthus to Kalgoorlie is the Trans Australian and is government owned. The
rail from Kalgoorlie to Esperance is owned by a private infrastructure operator, as opposed to a
competing mining company.
The Western Australian State Government has recently announced a planned expansion to the
Esperance Port to facilitate an additional 20 MTpa export capacity. This will be undertaken in
conjunction with private operators and submissions are currently being prepared. The State
Government has a stated objective of allowing access to those who require it.
Figure 2: Zanthus rail siding, wye, spur line and airstrip.
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The Zanthus rail siding is 1.8 kms long. A wye and spur lines are also present, along with rail
workers’ accommodation and an airstrip. Zanthus represents the start of the longest straight
rail in the world to the East of this point (Figure 2).
POTENTIAL JV PARTNERS
On January 26th 2012 Buxton’s exploration team and directors led a field trip to Zanthus with
potential investors. The trip involved inspecting drill spoils, intercepts, Zanthus railhead, spur
and wye lines (Figure 3). Discussions are still pending with various interested parties.
Figure 3: Buxton’s exploration team and directors lead a recent site visit to Zanthus with
interested parties
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SCOPING STUDY CONTINUES
On December 12 2011, Buxton commissioned Runge Ltd to undertake a high level Scoping
Study to investigate the potential economic viability of the Zanthus Magnetite Project.
The scope of work includes design of a preliminary optimised pit shell, processing,
infrastructure, transport and an initial economic model. The study is expected to be completed
in April or early May 2012.
MARKETING STUDY
A Marketing Study was commissioned during the quarter to assess the marketability of Zanthus
concentrate. Magnetite concentrate is used in the Iron and Steel Making operations in two
forms: as a concentrate fed into a pellet plant for the production of pellets, or as feed to a sinter
plant. In both cases, the material requires processing prior to being used in the iron making
process.
+67% Fe content of the Zanthus magnetite concentrate at a target p80 of 150 microns
is an ideal material to add to a sinter mix
Zanthus magnetite concentrate at a target p80 of 150 microns will prove to be a
saleable product attracting a premium price
The results also demonstrate very good liberation of Fe is achieved at a p80 of 45
microns. At this size, the concentrate is suitable only for pellet feed
CONCLUDING COMMENTS
The Scoping Study currently underway will aim to draw together all the elements of the Zanthus
Project to ascertain the potential future viability of the project. Clearly the access to rail and port
infrastructure, along with the favourable metallurgy are major advantages, and bode well for
the project.
The Marketing Study assessing the marketability of the Zanthus concentrate appears to confirm
the concentrate lends itself favourably to sinter feed used in Chinese steel mills.
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Dempster Project, Fraser Orogen WA
E63/1114, E63/1120 – 1121 (90% Buxton), E63/1351 (100% Buxton)
No field activity was conducted on the Dempster Project during the quarter.
Events Subsequent to the End of Quarter
Interest has been received from several parties in investing in the Zanthus Project and
discussions are continuing.
For further information regarding Buxton Resources Limited please contact:
Anthony Maslin
Managing Director
Jodi Haslinger
Joint Company Secretary
Ph; 08 9380 6063
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Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
BUXTON RESOURCES LIMITED
ABN Quarter ended (“current quarter”)
86 125 049 550 31 March 2012
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A‘000
Year to date
(9 months)
$A ‘000
1.1 Receipts from product sales and related debtors - -
1.2 Payments for
(a) exploration and evaluation
(b) development
(c) production
(d) administration
(91)
-
-
(54)
(974)
-
-
(250)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature
received
2
66
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 i GST Paid (2) (83)
1.7 ii
Net Operating Cash Flows
(145)
(1241)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets
-
-
-
-
-
-
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
-
-
-
-
-
-
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other - -
Net investing cash flows
-
-
1.13 Total operating and investing cash flows
(carried forward)
(145)
(1241)
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1.13 Total operating and investing cash flows
(brought forward)
(145)
(1241)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, exercise of
options, etc.
-
-
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other – costs of capital raising - -
Net financing cash flows - -
Net increase (decrease) in cash held
(145)
(1241)
1.20 Cash at beginning of quarter/year to date 1,524 2,620
1.21 Exchange rate adjustments to item 1.20 - -
1.22 Cash at end of quarter 1,379 1,379
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A’000
1.23
Aggregate amount of payments to the parties included in item 1.2
40
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25
Explanation necessary for an understanding of the transactions
Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting
fees and superannuation.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
Not applicable
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the
reporting entity has an interest
Not applicable
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Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
$A’000
Amount used
$A’000
3.1 Loan facilities
- -
3.2 Credit standby arrangements
- -
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation
20
4.2 Development
-
4.3 Acquisition of interests
-
4.4 Administration
90
Total
110
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown
in the consolidated statement of cash flows) to the
related items in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
5.1 Cash on hand and at bank 129 227
5.2 Term deposit (four months) 1,250 1,297
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 1,379 1,524
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Changes in interests in mining tenements
Tenement reference Nature of
interest
(note (2))
Interest at
beginning of
quarter
Interest at end
of quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
6.2 Interests in mining
tenements acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number
quoted
Issue price per
security (see note 3)
Amount paid up per
security (see note 3)
7.1 Preference +securities
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, etc.
7.3 +Ordinary
securities
,
40,118,194
40,118,194
7.4 Changes during
quarter
(a) Increases
through issues
(b) Shares released
from escrow
(c) Decreases
through returns of
capital, buy-backs
7.5 +Convertible debt
securities
-
-
7.6 Changes during
quarter
(a) Increases
(b) Decreases
7.7 Options (description and
conversion factor)
4,750,000
4,000,000
4,004,983
3,750,000
-
-
4,004,983
-
Exercise Price
20 cents
30 cents
30 cents
35 cents
Expiry Date
30/6/12
30/6/12
31/1/16
31/1/16
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7.8 Issued during
quarter
7.9 Exercised during
quarter
-
-
7.10 Expired/lapsed
during quarter
-
-
7.11 Debentures (totals only)
-
-
7.12 Unsecured notes (totals only)
-
-
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Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 26 April 2012
Company Secretary
Print name: Jodi Haslinger
Notes
1 The quarterly report provides a basis for informing the market how the entity’s activities
have been financed for the past quarter and the effect on its cash position. An entity wanting to
disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining
tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a
joint venture agreement and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage interest and conditions
precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1
and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and
AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting
Standards for foreign entities. If the standards used do not address a topic, the Australian standard
on that topic (if any) must be complied with.
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