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When leveling, basic or not, you receive 25 points of rep for every treasure. No matter what treasure it is, rare, common, etc.
Also, you get treasure no matter the level of your weapon, it just depends on the area you do so. Some areas offer you greater opportunities at treasure, where as other areas offer you a lower rate of finding any.
The way the game is now, treasure and quest rep is the only way to level up once you fully master your pirates, making it possible to reach above level 50 (until they fix that, which I don't believe they have yet). Same rules apply, 25 points of rep per drop, meaning its better to kill weaker enemies.
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