THE BOURSE WHISPERER: Rox Resources has announced the retrieval of historic drilling results that it claims indicate a new potentially high grade zinc deposit located near the McArthur River zinc mine on the company’s Reward zinc project in the Northern Territory.
The find was made by Rox’s partner, Teck Australia as part of its work on the Reward project tenement package, which entailed an extensive review of historical open file company reports and assessment of over 100 drill holes.
Teck identified several areas to have potential to host high-grade zinc deposits of the McArthur River style.
Given the extent of known exploration, the Teena Basin presented itself as the highest potential drill ready target.
Teck subsequently located the drill core for historic holes Teena 2, 4, 4A, 6 and 8.
Intersections of past zinc mineralisation includes:
– 11.3 metres at 10.9 per cent zinc and lead, 14 grams per tonne silver from 908.8 metres;
– 8.6m at 9.84 per cent zinc and lead, 23g/t silver from 789.6m;
– 7.98 per cent zinc and lead, 4g/t silver from 629.2m; and
– 13.1m at 6.02 per cent zinc and lead, 5g/t silver from 599.2m.
Rox’s interpreted Teena cross-section. Source: Company announcement
Rox said despite the core being over 30 years old and heavily degraded and oxidised, mineralised intervals can still be clearly identified.
The company indicated this did give rise to a number of quality control issues in relation to the historical nature of the data with not all records necessary to meet the requirements of the JORC Code having been located.
“Teck are to be congratulated on their diligence and thoroughness in tracking down the existence of these drill holes, locating the drill core and compiling the data,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“It also highlights just how prospective our project tenements are, since this is now potentially the third significant zinc deposit, in addition to McArthur River and Myrtle that has been identified in the region.
“One can draw similarities to the Mount Isa district where a number of significant zinc-lead (and copper) deposits (e.g. Hilton and George Fisher) lie within 20 kilometres of the original Mount Isa Mine discovery.
“Needless to say, we’ll be examining our other prospects in great detail as well.”
Rox currently has an earn-in and joint venture agreement with Teck over its Reward project tenements, where Teck is spending $5 million to earn an initial 51 per cent interest and can spend up to $15 million to earn up to 70 per cent.
The main prospect on the Reward project tenements has been the Myrtle zinc deposit where a JORC compliant Indicated and Inferred Mineral Resource of 43.6 million tonnes grading 4.09 per cent zinc and 0.95 per cent lead has been defined by Rox.
Drilling has recently been completed at Myrtle by Teck and assay results are expected in about four weeks.