Rox Resources Ready to Roll with Returns from Reward

THE INSIDE STORY: Rox Resources (ASX: RXL) is happily perched on the nest egg of cash it received after divesting the company’s interest in the Reward zinc project in the Northern Territory.

Rox Resources completed the sale of Reward to Teck Australia Pty Ltd earlier this year, banking around $16 million with another $3.75 million to come in six years, for a total of $19.7 million.

Cashed-up, Rox is eager to add to its portfolio of prospective nickel and gold projects and to get out and explore.

“We have that money sitting in the bank and are looking at acquiring new opportunities,” Rox Resources managing director Ian Mulholland told The Resources Roadhouse.

“Having said that, we won’t be rushed into making a rash acquisition and will be fairly circumspect with regard to what opportunities are available.

“Obviously, we do want to get on with life and the reason we sold our interest in the Reward project was so we can do just that.

“But, we are not going to buy something just for the sake of buying, just because the market may be getting impatient and expecting us to do so.

“It has to be something worthwhile, and that, as we all know, is not always easy to find – if it was everybody would be doing it.”

Rox set its new acquisition trend last year when it picked up 100 percent ownership of the Collurabbie nickel- gold-copper-PGE project in the highly prospective North Eastern Goldfields region of Western Australia.

Collurabbie hosts the Olympia nickel sulphide deposit, where historical drilling results included: 5.8 metres at 3 per cent nickel, 2 per cent copper and 5.3 grams per tonne PGE.

Beside Olympia, Collurabbie hosts several strong prospects, such as Agora, Leros, Paros and Rhodes (East and West) where previous exploration identified mineralisation that never really received any substantial follow-up work.

The Collurabbie project tenements are situated just 70km due east of Rox’s Fisher East nickel sulphide and Mt Fisher gold projects, where the company considers there to be clear development synergies.

At Fisher East, Mineral Resources have been defined across the Camelwood, Cannonball and Musket deposits of 2.1 million tonnes at 2.5 percent nickel containing 52,000 tonnes of contained nickel.

A program of RC drilling is planned for the Horatio, Mt Tate, Cutlass, and Sabre North prospects.

Sabre is emerging as the ‘next big thing’ at Fisher East where Rox is planning a round of diamond drilling to progress it towards the definition of a maiden resource.

To date, Sabre has only received relatively shallow RC drilling, with a best intersection so far of 10 metres at 1.9 per cent nickel.

Most of the known EM conductor at Sabre has not been tested by deeper drilling.

“We have a drilling program that will be testing six targets that we are extremely keen on,” Mulholland said.

“We are fairly confident that at least two or three, hopefully more, are going to hit something.

“The aircore drilling we have already completed has indicated these to be good targets.”

Rox has also signed a Joint Venture with Doray Minerals (ASX: DRM) to explore the Mt Fisher gold tenements in 2016, under which Doray was required to spend $1 million within the first year.

Following that Doray can spend $4 million over a further two years to earn a 51 per cent interest, and increase its interest to 75 per cent by expenditure of a further $5 million over an additional two years.

Doray’s drilling at Mt Fisher has been hampered by unseasonably wet weather, but a recently commenced aircore drilling program of approximately 16,000m is targeting interpreted zones of possible gold mineralisation located in favourable structural positions.

These targets were developed by Doray following a gravity survey undertaken last year as well as a structural analysis of geophysical and geological data.

“We are looking forward to the results of this drilling program,” Mulholland said.

“This is just the first of several exploration programs we have scheduled to commence this year.

“Other drilling includes RC drilling at Fisher East, which will be followed by a planned diamond drilling program.

“We are also planning an aircore drilling program scheduled to commence at Collurabie in June.”

Rox Resources Limited (ASX: RXL)
…The Short Story

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DIRECTORS
Stephen Dennis, Ian Mulholland, Brett Dickson