Outstanding drilling results

Rox Resources Limited (ASX: RXL) is an Australian junior with advanced base and precious metals exploration projects in Australia including the Mt Fisher Gold and Fisher East Nickel Projects (WA), the Reward Zinc-Lead Project (NT) and the Bonya Copper Project (NT).

Earlier this month, Rox won the prestigious Explorer of the Year Award at the 2015 Australian Mining Prospect Awards in Sydney, following a highly successful year with drilling successes on its exciting Fisher East nickel sulphide project in WA, a promising copper discovery at Bonya in central Australia and further exploration success at the Teena Zinc Project in the Northern Territory.

Teena Zinc

Rox Resources continues to receive outstanding drilling results from its Teena Zinc Prospect, which forms part of the Reward project in the Northern Territory.

Drilling at the Teena zinc-lead prospect includes intersections of 26.4m @ 13.3% Zn+Pb including 16.2m @ 17.2% Zn+Pb, and 20.1m @ 15.0% Zn+Pb including 12.5m @19.5% Zn+Pb, and together with historic drilling has defined significant new high grade zinc-lead mineralisation over a strike length of at least 1.9km.

Earlier this week, Rox announced another exceptional drill result from diamond drilling at Teena.

Hole TNDD020 was drilled on the same north-south section as holes TNDD021 and TNDD014, and intersected further high-grade zinc and lead sulphide mineralisation in both defined lenses:

Lens 2: 35.4m @ 13.2% Zn+Pb from 817.0m, including 21.2m @ 18.6% Zn+Pb from 831.2m, and
Lens 1: 12.8m @ 9.4% Zn+Pb from 895.2m, including 6.8m @ 12.5% Zn+Pb from 895.2m

This latest hole suggests good continuity of mineralisation according to Rox Resources managing director, Ian Mulholland said.

“Each drill hole this season has made an important contribution to the growing definition of a significant body of high-grade zinc/lead mineralisation,” he said.

The Reward project is subject to an option/joint venture (JV) agreement between Rox (49%) and Teck Australia (51%), a subsidiary of Canada’s largest diversified resource company Teck Resources Limited.

Teck have elected to exercise the option to increase their JV interest to 70% by expending up to $15 million in total by 31 August 2018. To date Teck have spent approximately $12.4 million.

“We will be diluted down to about 30 per cent in probably the third quarter of next year,” he said.

“One we get to 30 per cent we have to contribute as will no longer be free carried. So, we obviously are looking at ways we can get value for our shareholders for what we have in this project.

Mr Mulholland believes that Teena has been severely undervalued or even forgotten by the market.

“The indications are that this deposit is going to be bigger and better than most of the zinc deposits in Australia, bar say the top five. It is probably the best un-developed zinc deposit in Australia and owning 30 per cent of that is significant.

“Somewhere down the track this project is going to have a lot of value and it is really just a case of trying to get that value recognised by the market. Everyone is talking about the zinc price taking off and it hasn’t quite yet.

To read the complete RXL report please click here: http://www.theaustralianinvestor.com.au/linkt.aspx?id=694