Perth, Oct 7, 2008 AEST (ABN Newswire) - Rox Resources Limited (ASX: RXL) is pleased to announce its maiden JORC compliant mineral resource estimate for its Myrtle zinc-lead deposit, located approximately 20km south of the McArthur River zinc-lead mine in the Northern Territory, of:
- 38 Million Tonnes grading 4.2% Zn, 1.0% Pb (5.2% combined Zn+Pb)
The resource is classified as Inferred and is estimated at a 3% Zn+Pb cut-off.
The mineral resource contains significant quantities of metal:
- 1.6 million tonnes of insitu zinc,
- 0.4 million tonnes of insitu lead,
- 2.0 million tonnes of combined insitu zinc and lead.
At a higher cut-off grade of 5% Zn+Pb the resource includes a higher grade core, with a grade of 7% Zn+Pb:
- 15 Million Tonnes grading 5.5% Zn, 1.5% Pb (7.0% combined Zn+Pb).
Silver grades are low (about 1 g/t) and have not been included in the mineral resource estimate.
Geology and grade was observed to be acceptably continuous at the current drill spacing of about 400 x 400 metres. The mineral resource was estimated using the cross sectional polygonal method, the most appropriate estimation technique at this stage of the project.
Commenting on the mineral resource, Rox Managing Director, Mr Ian Mulholland said "This mineral resource at Myrtle is significant in anyone's terms, and confirms our stated belief that Rox has identified a very large zinc and lead deposit just 20km south of the world class McArthur River zinc-lead mine. To date, we have only drilled a small portion of the prospective area, and are extremely confident the resource will to continue to grow with further drilling.
"After our recent drilling was completed we identified a 2km long soil anomaly. Near surface mineralisation drilled and included in the current resource, underlies only a small portion of that soil anomaly, with the remainder of it still not drill tested. We need to do more drilling along this anomaly to fully evaluate the potential for an open pit resource".
Metallurgical test work to establish process recoveries has commenced, with first results expected in about 8 weeks.
Rox has exercised its option to purchase the Reward project tenement which covers 379km2 adjacent to the world class McArthur River zinc-lead deposit in the Northern Territory. A SEDEX style deposit has been identified by Rox at the Myrtle prospect, where an Inferred Mineral Resource of 38 million tonnes grading 4.2% Zn and 1.0% Pb has been delineated. Thick drill intercepts of prospective stratigraphy carrying significant zinc-lead grades have already been made but only a small portion of the prospective area has been drilled, and Rox is extremely confident the resource will to continue to grow with further drilling. A higher grade core of 15 million tonnes grading 5.5% Zn and 1.5% Pb is present, and a large mineralised system is indicated.
IP and EM geophysical surveying, soil sampling and geologic interpretation also indicate the potential for shallow near surface mineralisation which may be exploitable by open pit mining. Several other prospects in the tenement area have similar potential to Myrtle but are at an early stage of exploration.
Rox also owns a 60% interest in the Pha Luang zinc-lead sulphide project in Laos which it believes has the potential to become a large new MVT style zinc-lead district. The project area covers a 20km2 granted mining concession area and contains numerous zinc-lead prospects. Rox is the first explorer to apply modern techniques to the area. Mineralisation is widespread with zinc and lead oxides and sulphides outcropping in various places along a strike length of over 10km. Applications have been lodged for an additional 290km2 exploration area immediately surrounding the granted mining concession.
Rox has been successful at defining mineralisation at a number of prospects in the Pha Luang project, with over 9,000 metres of drilling conducted so far. A number of very strong drill targets, and extensions to known mineralisation remain untested. Rox is now among several Australian mining companies enjoying success in Laos where the Government has stated its intentions to embrace mining as a priority industry. Rox maintains an exploration office in the Lao capital, Vientiane, to support the Pha Luang project.
Rox continues to actively review potential new opportunities, particularly in Australia and South East Asia.
Note:
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, MAICD, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Mulholland is a full time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
About Rox Resources Limited
Rox Resources Limited (ASX:RXL) is an Australian listed company with advanced gold and nickel projects in Australia. Rox owns a 50% interest in the Youanmi Gold Mine, and wholly-owns the Mt Fisher Gold project and the Fisher East and Collurabbie Nickel Projects, all located in Western Australia.
The Youanmi Gold Mine is the company's flagship project and offers significant upside in both development and exploration potential. Rox co-owns the Youanmi Gold Mine with Venus Metals Corporation Limited (ASX:VMC) through a 50% ownership, with the ability to increase ownership in the mine to 70%. Rox is responsible for the management of the Youanmi Gold Mine.
The Youanmi Gold Mine has a JORC 2012 compliant Mineral Resource Estimate of 12.4Mt at 2.97g/t Au for 1,190,600 ounces of gold, including a 'near surface' portion of 10Mt at 1.65g/t Au for 532,000 ounces of gold.
The Company is well-funded to develop and explore the Youanmi Gold Mine with approximately $11.4 million in cash and receivables.
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