THE BOURSE WHISPERER: Rox Resources (ASX: RXL) outlined the company’s proposed exploration activities for 2018.
Rox Resources said its strong financial position means that it can undertake substantial exploration programs while it continues to look for new asset opportunities that will build on its current portfolio.
The company has been focused on the acquisition of a suitable project with a clear path to production over the past six months, but it also has nickel and gold resources in hand, which, in the light of the continued strong performance of the nickel and gold price, it believes deserve to be further progressed.
“We are in an enviable position for an explorer heading into 2018,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.
“We remain well cashed-up with $12 million at the end of December.
“We have an exceptional portfolio of existing assets with exposure to the nickel and gold markets.
“We will continue to pursue these and monitor market conditions, particularly with respect to where we see nickel in coming years, however, our financial position also gives us the firepower to pursue a near-term growth opportunity and we are looking at numerous projects across a range of attractive commodities that we think can deliver significant shareholder value in the short term.”
The company has designed a program of work to both discover new deposits and increase existing resources at both Fisher East and Collurabbie.
At Fisher East diamond drilling is planned to extend the Musket and Camelwood deposits by testing strong downhole EM anomalies, and at Corktree to test a very strong one-kilometre-long EM conductor, detected from surface.
Aircore drilling at Collurabbie and Fisher East will allow continued definition of geochemical trends to allow targeting of deeper drilling to discover new nickel sulphide orebodies.
“At Fisher East our aims are to make a new game changing massive nickel sulphide discovery, while at the same time increasing resources and continuing to assess development options,” Mulholland said.
“At Collurabbie our ultimate aim is to find more massive nickel sulphide orebodies like Olympia.”
Aircore drilling completed at Mt Fisher in December 2017 returned strong results at a number of prospects over a 10km strike length Rox considers warranting follow-up to add to current gold resources.
A program of RC drilling is planned to test targets at Dam, Dam North, Damsel, Damsel South, Dirks and Shiva.
“With our existing resource base of 86,000 ounces of gold, we see the potential for greater than 500,000 ounces of gold in these targets at Mt Fisher.
“If we can achieve that, it will represent a significant gold development opportunity.”