Rox Resources claims ‘world-class’ zinc discovery at Teena

THE DRILL SERGEANT: Rox Resources (ASX: RXL) announced a zinc-lead maiden Inferred Mineral Resource for the – “world-class” Teena zinc-lead deposit, located eight kilometres west of the McArthur River zinc-lead mine in the Northern Territory.

Rox declared the Inferred resource to have confirmed what has thought for some time – that  the Teena deposit represents the largest and highest grade zinc-lead mineral resource discovered in Australia for over 20 years.

Utilising a six per cent zinc-lead (Zn+Pb) cut-off, the JORC (2012) Inferred Mineral Resource is:

58 million Tonnes grading 12.7 per cent Zn+Pb (11.1 per cent zinc, 1.6 per cent lead) for 7.4 million tonnes of contained zinc and lead metal (6.5Mt Zn and 0.9Mt Pb).

“This is a world-class Mineral Resource with the estimated tonnage and grade of Teena comparable to other giant zinc-lead resources globally,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“Teena has zinc grades as high as currently operating mines at McArthur River, Mt Isa and previously at Century.

“Teena contains a total of 16.3 billion pounds of zinc and lead metal (14.2 billion pounds zinc, 2.1 billion pounds lead), which in terms of contained metal exceeds the endowments of either the Cannington or the Dugald River deposits.

“The value of this project to Rox, currently being a 49 per cent interest, but ultimately a 30 per cent interest after Teck completes its earn-in, can be compared favourably with other companies with minority interests in significant projects, such as Independence Group’s 30 per cent of Tropicana, Talisman’s 30 per cent of Monty, and Creasy Group’s original 30 per cent (now sold) of Nova.

“All of these have significant value, just like Rox’s interest in Teena has.”

Rox explained the zinc-lead mineralisation at Teena occurs as two sub-parallel lodes, termed the Lower Lode and the Upper Lode.

The Upper Lode is thicker and higher grade than the Lower Lode.

At a six per cent Zn+Pb cut-off grade the Inferred Mineral Resources for each lode are estimated to be:

Upper Lode:
45 million tonnes at 13.7 per cent Zn+Pb (12 per cent zinc, 1.8 per cent lead); and

Lower Lode:
14 million tonnes at 9.4 per cent Zn+Pb (8.2 per cent zinc, 1.2 per cent lead).

From 1961 a total of twenty-two drill holes have been completed at Teena, 17 of which have intersected mineralisation used to define the Mineral Resource.

Rox believes it is likely the Mineral Resource will grow by further drilling, especially along the margins of the deposit.
The Teena deposit forms part of the Reward zinc-lead project, subject to an option/joint venture agreement between Rox and Teck Australia Pty Ltd, a subsidiary of Teck Resources Limited.

The JV is currently owned 49 per cent by Rox and 51 per cent by Teck.

Teck has the option to increase its JV interest to 70 per cent by spending up to $15 million in total by 31 August 2018.

As at 31 March 2016 Teck had spent approximately $13.85 million.

Email: admin@roxresources.com.au

Website: www.roxresources.com.au