"Rox Resources (ASX: ROX) plans to acquire up to a 70% interest in the highly prospective Bonya Copper Project in the Northern Territory after entering into a farm-in agreement with Arafura Resources (ASX: ARU).
The 279 square kilometre project is located adjacent to Kentor Gold’s (ASX: KGL) 11.9 million tonne at 1.3% copper Jervois deposit, with mineralisation at Bonya shown to be similar to Jervois.
Portable XRF analyses has uncovered visible outcropping copper mineralisation with values of up to 34.6% copper and 27 grams per tonne (g/t) silver.
Importantly, walk up drill targets have already been identified at the old Bonya Mine prospect.
Assessment of historic mining activities at the old Bonya copper mine indicates the potential for depth extensions to the outcropping mineralisation, which has never been previously drill tested.
Both the Bonya and Jervois copper projects are in an interpreted high metamorphic grade volcanogenic massive sulphide geological setting.
The geological setting is similar to other areas such as Mount Hardy in the Northern Territory, and of a similar deposit type to those found in the Doolgunna district in Western Australia, which hosts Sandfire Resources' (ASX: SFR) DeGrussa deposit.
Ian Mulholland, managing director of Rox Resources, commented: “This is a great exploration opportunity for us. The style of mineralisation is similar to the nearby Jervois deposits.
“The surface expressions suggest the potential for sulphide mineralisation below the old workings which is anticipated to also contain significant gold and silver.
“Our data compilation work shows that the tenements are under explored, with most of the work previously focussed on the adjacent Jervois copper deposits.
“We have a walk up drill target at Bonya, and on top of that there is a large 279 square kilometre tenement holding to explore with similar rocks to those at Jervois.
“Several other copper prospects have been identified from our research, so we see the whole area as highly prospective.”
Mulholland told Proactive Investors today Rox recognised the potential of the area when assessing copper opportunities in the Northern Territory.
“Initially we were attracted by the potential of the Jervois copper project, and when we couldn’t get involved in that we looked for other opportunities.”
Rox plans to begin exploration with a rock chipping and soil sampling program followed by geophysics and drilling.
Mulholland said Rox will undertake its first field trip next month with a rock chipping and soil sampling program, and will follow that up with some geophysics and drilling early next year.
“We should have the results out before the end of the year. That should give us more information upon which to base our planning for geophysics and drilling.”
Terms of deal
Rox is required to spend $500,000 within the first two years to earn a 51% interest in the copper, lead, zinc, silver, gold, bismuth and platinum group elements mineral rights.
This includes a minimum of $150,000 in the first year before Rox can withdraw. Arafura retains all other mineral rights over the tenements comprising EL10215 and EL26812.
Rox can elect to earn a further 19% (for 70% in total) by spending an extra $1 million over a further two years.
Once Rox has earned either a 51% or 70% interest it can form a joint venture with Arafura to further explore and develop the area.
Analysis
The acquisition of a 70% interest in the Bonya Copper Project provides a significant filip to Rox's exploration portfolio in a very prospective copper province.
The project’s location adjacent to Kentor Gold’s 11.9 million tonne at 1.3% copper Jervois deposit is significant, with mineralisation at Bonya already showing similarities to Jervois and an indicator to potential future success.
Both the Bonya and Jervois copper projects are in an interpreted high metamorphic grade VMS geological setting, similar to other areas such as Mount Hardy in the Northern Territory, and of a similar deposit type to those found in the Doolgunna district in Western Australia, which hosts Sandfire’s DeGrussa deposit.
Rox is likely to pick up new fans with the addition of a highly prospective copper project to its portfolio. Although early days, with visible copper mineralisation at surface and portable XRF analyses of grades up to 34% copper and 27g/t silver there is a sense of expectation."
Cheers Uncle......
RXL Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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