Buxton Resources Acquires Matrix Project in Arizona for Manganese Supply

Australian mining company Buxton Resources acquires the Matrix manganese exploration project in Arizona, positioning itself to supply the growing electric vehicle battery market. The company will spend $1 million over two years to earn 100% ownership of the project, which has walk-up drill targets and potential for manganese mineralization.

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Bijay Laxmi
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Buxton Resources Acquires Matrix Project in Arizona for Manganese Supply

Buxton Resources Acquires Matrix Project in Arizona for Manganese Supply

Australian mining company Buxton Resources has expanded its critical mineral portfolio with the acquisition of the manganese, exploration, project in Mohave County, Arizona. The project, located adjacent to RecycLiCo Battery Materials' Artillery Peak project, the world's sixth-largest manganese resource, positions Buxton to supply the growing electric vehicle (EV) battery market.

Why this matters: The increasing demand for manganese in the EV industry has significant implications for the global energy transition and the reduction of carbon emissions. As the world shifts towards cleaner energy sources, securing domestic supplies of critical minerals like manganese becomes crucial for energy independence and national security.

The 12-square-kilometer Matrix project is a low-cost brownfields delve, deep, manganese opportunity with walk-up drill targets. Buxton will spend $1 million over two years to earn 100% ownership from private company Solution Metals. The deal terms include issuing $150,000 worth of Buxton shares to Solution Metals, plus a 1.5% net smelter return (NSR) royalty. A second tranche of $100,000 in shares will be issued after two years or upon completing the earn-in requirements.

Mapping by the Arizona Geological Survey indicates the potential for known manganese mineralization to extend into the Matrix project area. Buxton CEO Marty Moloney stated, "The Matrix Project acquisition provides Buxton shareholders a low-cost option on the high-purity manganese sulphate market which is predicted to grow between 4-6 times by 2030." The manganese spot price has surged 32.5% this year, driven by strong demand for battery-grade manganese sulphate.

The Matrix project consists of 154 Bureau of Land Management (BLM) claims. Buxton plans to commence work in the third quarter, with drilling expected in Q4 2024 to test extensions of the known manganese mineralization. The United States currently relies entirely on manganese imports, and the Biden Administration's Inflation Reduction Act provides significant incentives for domestic critical mineral projects.

The Matrix acquisition adds to Buxton's growing critical minerals portfolio, which includes the Graphite Bull graphite project in Western Australia with a resource of 4 million tonnes at 16.2% total graphitic carbon (TGC), and the Copper Wolf project in Arizona that has returned promising drill results like 405.38m at 0.7% copper equivalent. At Graphite Bull, a 2023 scout drilling program intersected thick, high-grade graphite, and an infill program is planned for 2024 along a 2.1km strike zone.

With the Matrix project, Buxton has secured a strategic position to help supply the critical battery metal manganese to the booming EV market. Drilling later this year will test the potential to expand the known manganese resources in this prolific district of Arizona. The project provides Buxton a key low-cost, high-potential exploration opportunity in the fast-growing manganese space as it continues to build out an impressive portfolio of battery metal projects in tier-one jurisdictions.

Key Takeaways

  • Buxton Resources acquires Matrix manganese project in Arizona.
  • Project positions Buxton to supply growing EV battery market.
  • $1 million earn-in deal over 2 years for 100% ownership.
  • Matrix project has potential for high-purity manganese sulphate.
  • Buxton expands critical minerals portfolio with Matrix acquisition.