Coverage here too:...

Coverage here too:

http://www.marketwire.com.au/market...iden-mineral-resource-a-game-changer-for-rox/
Reward maiden mineral resource a game changer for Rox

Shares in Rox Resources could receive a boost on Wednesday morning after the company announced its maiden inferred mineral resource for the Teena zinc lead deposit located 8 kilometres west of the McArthur River zinc-lead mine in the Northern Territory.

Management highlighted that the inferred resource confirms the Teena deposit represents the largest and highest grade zinc-lead mineral resource discovered in Australia for more than 20 years.

The resource boasts outstanding grades with 58 million tonnes grading 12.7% zinc plus lead, and importantly 11.1% zinc. Management sees the potential to increase the resource size and/or grade with more drilling.

The Teena deposit is part of the Reward zinc-lead project which is subject to an option/joint-venture agreement currently owned 49% by Rox and 51% by Teck Australia, a subsidiary of Teck Resources. Teck has the option to increase its joint-venture interest to 70% by spending up to $15 million by August 31, 2018.
Managing Director Ian Mulholland said, ‘This is a world-class mineral resource with the estimated tonnage and grade of Teena comparable to other giant zinc-lead resources globally. Teena has zinc grades as high as currently operating mines at McArthur River and Mount Isa, and previously at Century’.

Mulholland went on to highlight that Teena contains a total of 16.3 billion pounds of zinc and lead metal which in terms of contained metal exceeds the endowments of either the Cannington or the Dugald River deposits.

In terms of addressing the potential project ownership Mulholland said, ‘The value of this project to Rox, currently being a 49% interest, but ultimately a 30% interest (after Teck completes its earn-in) can be compared favourably with other companies with minority interests in significant projects’.

On this note he made comparisons with Independence Group’s 30% stake in Tropicana, Talisman’s 30% interest in Monty and Creasy group’s original 30% stake in Nova (now sold).

Obviously, Mulholland doesn’t want the minority ownership of Rox’s interest in the project to detract from investor interest in the stock, and it was interesting to note his rhetoric ‘after Teck completes its earn in’, suggesting that is a foregone conclusion.

In any case, this is a real game changer for Rox and it would be surprising not to see its share price receive considerable support.

Looks good.