THE BOURSE WHISPERER: Teck Australia has informed Rox Resources of its intentions regarding exploration activity over the latter’s Myrtle zinc-lead project, located 20 kilometres south of the large McArthur River zinc mine in the Northern Territory.
Teck Australia holds an option to earn up to a 70 per cent-interest in Myrtle from Rox.
Myrtle project location. Source: Company announcement
Teck recently completed a 1,200 line kilometre airborne gravity survey using the Falcon system flown at 400 metre line spacing over the project area.
The survey covered 422 square kilometres of the 669sqkm Myrtle tenements, from which data processing is now underway.
Teck has advised Rox it has budgeted approximately $2.1 million during 2012 to undertake a significant field exploration program, which includes:
– Airborne Gravity Survey (data acquisition phase completed);
– Completion of a drilling campaign commenced in 2011;
– Regional target compilation and mapping;
– Surface geochemistry;
– 3D modelling;
– HeliSAM; and
– Reconnaissance IP.
Rox said the drilling campaign that commenced in 2011 is set to recommence as soon as weather conditions permit.
“The 2012 exploration program proposed by Teck is exactly the reason we chose them to be our joint venture partner on this exciting project,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“Not only will they drill in and around the Myrtle deposit, but they will also give the highly prospective regional exploration the attention it deserves and this should generate a number of priority targets for further exploration.”
Preparatory work completed last year by Teck included construction of a three dimensional geological model, ground magnetics, surface geochemistry, ground gravity, ground electromagnetics (EM) and induced polarisation (IP) geophysical surveys.
Compilation of all previous work was also completed to produce a high quality geological database for the project.
Rox has established a JORC compliant mineral resource of 43.6 million tonnes at 4.09 per cent zinc and 0.95 per cent lead, which the company claims makes Myrtle one of Australia’s ten largest zinc projects, and the only such zinc project not already in the hands of major mining companies.
The company’s exploration target for Myrtle is 100 to 200 million tonnes grading between 10 to 12 per cent zinc and lead.