Rox extends Myrtle’s Resource potential

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THE DRILL SERGEANT: Rox Resources (ASX:RXL) has reported results from six diamond drill holes recently completed at the Myrtle/Reward zinc project, south-east of Darwin in the Northern Territory.

 

Project location. Source: Company announcement

 

The drilling was conducted by Teck Australia, which is earning an initial 51 per cent interest in the project.

Three holes were drilled into the North Myrtle Basin, where Rox has estimated a JORC-compliant Mineral Resource of 43.6 million tonnes grading 4.09 per cent zinc and 0.95 per cent lead for 5.04 per cent zinc and lead at a three per cent zinc and lead cut-off.

Rox said each of these latest holes intersected mineralisation although the grades were moderate, which it said could possibly be the result of drilling being located near the margins of the basin.

However, the mineralised horizon measured around 20 metres in total thickness in each hole with the better results being:

–    4 metres at 2.70 per cent zinc and lead from 219 metres;

–    7m at 2.52 per cent zinc and lead from 290m;

–    10m at 1.77 per cent zinc and lead from 299m; and

–    22m at 1.26 per cent zinc and lead from 160m.

“The drilling was successful since Teck have established, by taking large step outs in drilling, that the mineralised system in the North Myrtle Basin is indeed very large and have extended it some 400 metres north and 700 metres northeast from our previous drilling,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“In addition, this basin is still open to the west where there has been very little drilling.
 
“We are very encouraged that the overall Myrtle system is a large one, and therefore has the potential to host a reasonably sized body of higher grade mineralisation.

“We have a higher grade subset of the JORC Mineral Resource at a cut-off of five per cent zinc and lead, of 15.3 million tonnes grading 5.45 per cent zinc, 1.40 per cent lead, for 6.85 per cent zinc and lead, and this drilling indicates that if the mineralised system is larger, then this higher grade portion may be significantly larger too.”

Rox also mentioned its Teena prospect, situated north of Myrtle, where it recently announced data demonstrating thicknesses and grades from historic drilling that had not previously been reported.

The company has achieved results at Teena of 11.3m at 10.9 per cent zinc and lead and 8.6m at 9.84 per cent zinc and lead, which it considers labels Teena as a prospective target.

Mulholland said Teck is planning to investigate Teena in greater detail in the future.

“What this all demonstrates is that Rox’s tenement area is highly prospective and is proving to be analogous to the Mt Isa area where a number of deposits (such as Hilton and George Fisher) have been found within 20 kilometres of the original Mt Isa deposit,” Mulholland said.