THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has been further encouraged by recent drilling results from the first hole of a drilling program currently underway at the Teena prospect located on the company’s Reward zinc project in the Northern Territory.
The drilling program is being managed by Teck Australia under the terms of an Earn-in Agreement with Rox, under which Teck is funding all drilling and other exploration costs.
The first hole drilled by Teck into the prospect intersected a 116 metre interval of variable zinc and lead mineralisation from 1,102 metres, with multiple zones of mineralisation above a 2.5 per cent zinc/lead cut-off.
Best results from the drilling include:
– 26.4 metres at 13.3 per cent zinc/lead from 1,060.1 metres, including 8.1 metres at 8.7 per cent zinc/lead from 1,060.1 metres, and 16.2m at 17.2 per cent zinc/lead from 1,070.3 metres, including 8 metres at 21.2 per cent zinc/lead from 1,071.0 metres;
– 6.9m at 8.9 per cent zinc/lead from 1,121m, including 5m at 10.7 per cent zinc/lead from 1,1210m;
– 7m at 5.4 per cent zinc/lead from 1,049m; and
– 18.4m at 3.7 per cent zinc/lead from 1,020.6m, including 2m at 5.7 per cent zinc/lead from 1,022m, and 3m at 5.4 per cent zinc/lead from 1,028m.
Rox described the style of mineralisation as “stratiform sedex” style zinc sulphide, with minor lead sulphide, which it explained was significant due to the lateral continuity this type of mineralisation generally exhibits.
The main section of mineralisation above the 2.5 per cent zinc/lead lower cut-off occurred between 1,012m and 1,128m down hole, with some interspersed barren sections.
Complete assay results including minor elements such as silver are still to be received.
The Teena prospect is located on an Exploration Licence Rox acquired from
Legend International Holdings in September 2010.
Legend retains the diamond rights on the tenement and is also entitled to a 2.5 per cent net smelter royalty on any other minerals produced from the tenement.
Rox has signed an Earn-In and Joint Venture Agreement with Teck to explore the Reward project tenements.
Under the terms of the agreement, Teck have an option to spend $5 million by 31 August 2014 to earn an initial 51 per cent interest.
Teck can then elect to increase its interest in the project to 70 per cent by spending an additional $10 million ($15 million in total) by August 2018.
To date Teck has expended approximately $4 million.