INSIDE UPDATE: Rox Resources (ASX: RXL) is putting its well-funded war chest to work across its portfolio of Western Australia nickel projects.
Rox Resources is currently sitting on a healthy bank balance of approximately $12 million due to finalising sale of the Reward zinc project in the Northern Territory in 2017.
Rox recently dipped into these funds commencing a 2,500 metres diamond drilling program at the company’s Fisher East nickel project, located 500 kilometres north of Kalgoorlie in Western Australia.
Five holes are to be drilled into three highly-prospective targets at the project’s Musket and Camelwood deposits and the Corktree prospect.
The overall aim of the diamond program is to extend the Musket and Camelwood deposits by testing strong downhole EM anomalies, and to test a very strong one-kilometre long EM conductor at Corktree detected from surface, but not previously effectively drill tested.
“The downhole EM target at Musket is the strongest anomaly we’ve encountered on the project,” Rox Resources managing director Ian Mulholland said.
“Extensional drilling at Camelwood will indicate the strength of the nickel sulphide system below the current level of our defined resource.
“The target at Corktree is also very attractive, as it represents a very strong, 400 to 500 metres deep, over one-kilometre long, EM conductor detected from surface.
“At Fisher East our overall aim is to make a new game changing massive nickel sulphide discovery, while at the same time increasing resources and continuing to assess development options.”
Mulholland boasted that Rox is only one of a very few junior companies not currently in production that has defined JORC nickel sulphide resources in Western Australia.
“This puts us in a unique, and advantageous position when it comes to development opportunities in this commodity as the price continues to appreciate”, he said.
JORC Code-2012 Mineral Resources at Fisher East total 2 million tonnes at 2.5 per cent nickel for 50,000 tonnes contained nickel.
In addition, mineral resources at Collurabbie total 573,000 tonnes at 2.3 per cent nickel equivalent for 13,500 tonnes contained nickel equivalent.
Earlier this year, Rox sold its Bonya tenement interests to Thor Mining (ASX: THR) for a total of $550,000 to be received in Thor shares.
Rox, as operator of an earn-in and Joint Venture agreement with Arafura Resources, discovered copper at the Bonya Mine prospect.
The tenements are also prospective for tungsten and molybdenum.
Rox and Arafura recently restructured the JV resulting in a 40 per cent ownership for Rox of all minerals on EL29701.
In addition, EL29599, wholly-owned by Rox was included in the sale.
“Rox will retain a significant exposure to any future developments at Bonya and Molyhil through its shareholding in Thor and will allow the company to place a clear focus on its other projects in Western Australia,” Mulholland said.
Rox Resources Limited (ASX: RXL)
…The Short Story
Level 1, 34 Colin Street
West Perth WA 6005
Ph: +61 8 9226 0044
Stephen Dennis, Ian Mulholland, Brett Dickson