THE BOURSE WHISPERER: Rox Resources (ASX:RXL) has entered into a Farm-in Agreement with Arafura Resources (ASX:ARU) to explore the Bonya copper project.
The deal allows Rox to earn a 70 per cent interest in the, what is considers to be, large and highly prospective copper project.
Visible outcropping copper mineralisation at the old Bonya Mine prospect returned portable XRF analyses of up to 34.6 per cent copper and 27 grams per tonne silver.
Although the company pointed out portable XRF analyses may not be representative of the whole sample, nor should they be taken as a substitute for laboratory analyses, it has used the information to identify walk up drill targets at the prospect.
“This is a great exploration opportunity for us,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“The style of mineralisation is similar to the nearby Jervois deposits. [JORC Mineral Resource 11.9 million tonnes at 1.3 per cent copper, 25g/t silver Kentor Gold ASX:KGL]
“The surface expressions suggest the potential for sulphide mineralisation below the old workings which is anticipated to also contain significant gold and silver.”
Under the terms of the agreement, Rox is required to spend $500,000 within the first two years to earn a 51 per cent interest in the copper, lead, zinc, silver, gold, bismuth and PGE mineral rights.
This includes a minimum of $150,000 in the first year before Rox can withdraw.
Rox can elect to earn a further 19 per cent (for 70 per cent in total) by spending a further $1 million over a further two years.
Once Rox has earned either a 51 per cent or 70 per cent interest it can form a joint venture with Arafura to further explore and develop the area.
Tenement and geology plan. Source: Company announcement
“Our data compilation work shows that the tenements are under explored, with most of the work previously focussed on the adjacent Jervois copper deposits,” Mulholland said.
“We have a walk up drill target at Bonya, and on top of that there is a large 279 square kilometre tenement holding to explore with similar rocks to those at Jervois.
“Several other copper prospects have been identified from our research, so we see the whole area as highly prospective.”
The company said assessment of historic mining activities at the old Bonya copper mine indicates potential for depth extensions to the outcropping mineralisation, which has never been previously drill tested.
Rox plans to commence exploration with a rock chipping and soil sampling program followed by geophysics and drilling.
“This project adds to Rox’s suite of exploration projects including the Myrtle/Reward zinc-lead project (Northern Territory), Mt Fisher gold-nickel project (Western Australia) and the Marqua phosphate project (Northern Territory),” Mulholland said.
“The Bonya copper project complements the company’s strategy of growth through exploration and cements Rox as a diversified multi-commodity explorer.”