Rox Resources could host "significant nickel sulphide deposit"
Monday, March 04, 2013 by John Phillips
Managing director of Rox Resources' Ian Mulholland
Rox Resources (ASX: RXL) continues to have exploration success at the Camelwood prospect, which is within the Fisher East nickel project - 450 kilometers north of Kalgoorlie in Western Australia.
The first diamond hole (MFED001) assays have shown that mineralsiation intersected is; 11.4 metres at 2.9% nickel from 282.6 metres, including 2.9 metres at 4.7% nickel. Diamond drilling is continuing which will provide more results in the near-term.
Another plus is that reverse circulation holes also recorded nickel, such as MFEC006 with 1 metre at 2.5% nickel and MFEC007 with 3 metres at 1.8% nickel.
The first diamond drill hole, MFED001, as reported on 15th February 2013, from visual inspection, to have intersected 3.1 metres of massive to semi-massive sulphide mineralisation from 282.8 to 285.9 metres, followed by 2.9 metres of disseminated sulphide mineralisation from 285.9 to 288.8 metres. Today's results are the actual assays.
Mineralisation longer than expected
The positive outcome from the assays are that they confirm the mineralised interval was longer than visually expected, and the high grade tenor of nickel contained in fresh massive to semi-massive sulphides is highly encouraging in terms of further massive sulphide material that might be located at Camelwood.
Ian Mulholland, managing director, commented: “Our initial drilling at Camelwood has been very wide spaced, and has been aimed at first determining the strike extent of mineralisation, which we are still to do despite drilling over 600 metres of strike at this stage.
“As would be expected with this type of deposit we are seeing varying intensities and thicknesses of mineralisation in our drilling.
"It’s still very early days in our understanding of the deposit, but we continue to have a 100% success rate in intersecting nickel sulphides in all holes drilled so far, and the high grades in hole MFED001 are particularly encouraging."
The importance of these results is that they are indicating a large mineralised system which is still open to the north, to the south and at depth.
Mulholland added, "Everything we are seeing is confirming that we have a typical komatiite-hosted type nickel sulphide mineralised system.”
New diamond hole MFEC005
A further diamond drill hole, MFEC005, has been drilled 100 metres north and about 50 metres below the MFED001 intercept, and highlighting the prospectivity of the area a visual inspection shows that this hole has intersected 1.7 metres of massive sulphides and 2 metres of disseminated sulphides, which is then cut off by a fault.
Mulholland said that these assays now clearly demonstrate the potential of this prospect to host a significant nickel sulphide deposit.
Diamond drill holes MFED003 and 004, drilled 200 metres south and 300 metres north respectively from hole MFED001, have intersected 0.1 metres of semi-massive sulphides followed by 12 metres of disseminated sulphides from 178.4 metres, and 0.1 metres of stringer sulphides followed by 6 metres of disseminated sulphides respectively.
While these holes indicate that the system in these locations is still mineralised, the potential for thicker massive sulphide mineralisation is clearly in the vicinity of hole MFED001 based on current knowledge.
Mulholland continued, “The results from holes MFED001 and MFED005 clearly indicate a focus for drilling where we expect to continue to intersect high grade massive sulphide mineralisation.”
Reverse circulation drilling
To date 8 RC holes have defined the strike extent at Camelwood to be at least 600 metres. Assays from holes MFEC006 and 007 have now been received and are as follows (above a 1% Ni cut-off):
- MFEC006: 1 metres at 2.5% nickelt from 125 metres; and - MFEC007: 3 metres at 1.8% nickelt from 118 metres.
The next step
Geophysical contractors have been mobilised to site to undertake down-hole EM surveys in all diamond holes completed so far.
Rox will also focus further drilling will be in the vicinity of hole MFED001, testing along strike and down dip.
Analysis
Rox may have only just scratched the surface of this deposit with only a very small and shallow portion of the modelled EM conductive plate yet tested.
The first diamond drill hole at the Camelwood prospect at the Fisher East nickel project are impressive. With a 100% success rate in intersecting nickel sulphides in all holes drilled so far, and the high grades in hole MFED001 are particularly encouraging. Rox looks to be on the verge of defining a significant nickel deposit at the prospect.
The recent capital raising was strongly supported with good reason raising $4.95 million.
If Rox continues to deliver results like today's going forward, then the re-rating of the company will continue.
(20min delay)