Rox Resources Limited (ASX:RXL)
Perth, June 2, 2009 AEST (ABN Newswire) - Rox Resources Limited (ASX:RXL) is pleased to announce that further evaluation of the zinc resource at Myrtle has identified a central zone of continuous higher grade mineralisation.
Previous estimates (see announcement dated 7 October 2008) of the resource at Myrtle have been undertaken at cut-off grades of 3% Zn + Pb and 5% Zn + Pb, and have shown that Myrtle is a significant Australian and global zinc deposit.
The new resource estimates are at higher cut-off grades to reflect the current lower zinc and lead prices, and continue to demonstrate the significance of the Myrtle zinc deposit.
The Inferred Mineral Resource estimated for Myrtle at a 6% Zn + Pb cut-off grade, stands at:
- 8.2 Million tonnes grading 6.4% Zn, 1.9% Pb, (8.3% combined Zn + Pb), at a 6% Zn + Pb cut-off
This resource estimate indicates continuous higher grade mineralisation within the much larger Inferred Resource at Myrtle of 38 Million tonnes grading 4.2% Zn, 1.0% Pb, at a 3% Zn + Pb cut-off. Table 1 in the Appendix sets out the Inferred Resource estimates at various cut-off grades.
Commenting on the new resource estimate, Rox Managing Director, Mr Ian Mulholland, said "we are very encouraged about the continuity of the higher grade zones within the Myrtle deposit. With only a small portion of the potential resource area drilled, we are hopeful that a much larger, higher grade resource will eventually be outlined".
"Clearly Myrtle is a significant zinc deposit, both in Australian terms, and on a global scale, with potential for significant extensions to the current resource. It is common that such a large deposit will have significant zones of higher grade mineralisation, such that that any mining operation will be able to survive the various metal price cycles over the longer term".
"Our next step will be a Scoping Study, which is underway. Similar projects to Myrtle in terms of deposit size and grade, but in less developed parts of the world have recently achieved positive Pre-Feasibility results. We are confident that Myrtle will produce excellent economics once we have completed the necessary work".
Rox owns 100% of 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 zinclead 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 20km(2) 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.
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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