THE BOURSE WHISPERER: Rox Resources (ASX: RXL) followed up the sale of its Reward project interest with the acquisition of 100 per cent of the Collurabbie project tenements, located 500 kilometres north of Kalgoorlie in Western Australia from Falcon Minerals (ASX: FCN).
The project tenements are situated 70km due east of Rox Resources’ Fisher East nickel sulphide and Mt Fisher gold projects and comprise E38/2009 and E38/2912, covering 63.1 square kilometres with most of the known nickel sulphide mineralisation located on E38/2009.
Rox Resources has also applied for adjoining tenement areas covering over 59sqkm, for a total project area of 122.5sqkm.
“We continue to add quality projects to our portfolio,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“The nickel sulphide discovery at Collurabbie was the talk of the town a few years ago, but lack of exploration during and since the GFC means the opportunity to define more extensive mineralisation there is still extremely attractive.
“In addition there’s the gold aspect which really hasn’t been looked at.
“The project fits nicely with our Fisher East nickel sulphide project, and being within 70 kilometres means that any mineral resources we define at Collurabbie can be easily trucked to Fisher East for processing should that development occur.
“That option hasn’t existed for this project before.
“Outside of Olympia, where most of the mineralisation has been intersected in drilling, there are other prospects, such as Agora, Leros, Paros and Rhodes (East and West) where indications of mineralisation have been found in previous exploration, but not really followed up.
“The project area has only had sporadic exploration, with a concentrated effort from 2004-2005 and moderate activity from 2010-2011, but no exploration of substance since 2011.
“Rox plans to apply the same successful exploration techniques at Collurabbie that we have used at Fisher East.
“We note that the last phase of exploration was five to six years ago, so we believe there is considerable scope for new discoveries.”
The purchase price for the Collurabbie project is $25,000 cash and 7,500,000 shares in Rox.