In September 2005, Rox announced it had assembled a quality portfolio of kimberlite projects and would pursue a strategy of quickly achieving diamond production in South Africa. The first to be sampled will be the Cyrus deposit which is part of a kimberlite cluster 14 km east of the Frank Smith and Leicester diamond mines, located 60 km north of Kimberley.
"Cyrus is a known diamond-bearing kimberlite, so we're excited to see what the sampling returns," said Mr Mulholland. "We've also forged a BEE agreement with Lute Mining and Diamonds and Tswelelang Ptd Ltd who already have a significant base in the country and kimberlite mining experience," he said.
Kimberlite mines in the area have produced grades between 15 and 25 carats per hundred tonnes, and historic diamond values from US$100 to US$230 per carat. Diamond prices have increased significantly from these levels over the past few years. The second deposit, Smithsdale, is located about halfway between Kimberley and Cyrus. Indicator mineral sampling has returned highly encouraging results. Two bulk samples will be collected, a 3,000 tonne sample from the Cyrus kimberlite and a 1,000 tonne sample from the Smithsdale kimberlite. Treatment will be onsite using a local contractor's rotary pan, grease table and flow-sort X-ray machine.
Results are expected within 3-4 weeks, and will establish a preliminary grade, diamond size distribution and value of the diamonds from these kimberlites. The bulk samples are the first step on the path to establishing the primary economic parameters of the kimberlites before a more detailed program of drilling is undertaken to determine kimberlite size, morphology, geology and grade distribution.
"We're aiming to complete a scoping study and pre-feasibility study in early to mid 2006. These are only two of nine known kimberlites on our ground holdings, and we have a number of other established exploration targets," said Mr Mulholland. "Rox has two main areas of focus - lead-zinc in Laos and diamonds in South Africa," said Mr Mulholland. "While we're hunting for elephants in Laos, South Africa is our best strategy for near-term cash flows," he said.
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.
Rox Resources Limited