BloombergRox Resources Limited (RXL)A portfolio of high quality...

Bloomberg
Rox Resources Limited (RXL)
A portfolio of high quality exploration projects
Recommendation: Speculative BUY
Key Points
? Large Mt Fisher gold and nickel project located on underexplored greenstone belt
? Myrtle zinc-lead JV with Teck provides free carried exploration to augment existing JORC Resource of 43.6Mt @ 5.04% Zn+Pb
? Teena has exploration target of 100-200Mt @ 10-12% Zn+Pb
? ‘Ore grade’ phosphate identified along 30km of strike at Marqua
? Bonya rock chips assay up to 30.7% Cu, 34.1g/t Ag and 0.52g/t Au
? SPP to provide funds to advance prospective Mt Fisher and Bonya
Rox Resources has an interest in four quality Australian based exploration projects, all of which have the potential to significantly enhance the company valuation as ongoing exploration results are released to the market.
Company Overview
Rox Resources Limited (ASX: RXL) is a mineral exploration company with a diversified portfolio of early stage, yet highly prospective projects located in Western Australia and the Northern Territory.
The company’s exploration efforts are currently focused on the Mt Fisher gold and nickel exploration project, located in WA. The tenements encompass 655km2 of exploration ground within a previously underexplored greenstone belt. A small JORC resource of ~1Mt @ 2.75g/t Au for ~86koz of gold has already been identified, and is likely to grow with ongoing exploration.
Teck Australia has entered into a JV with Rox for the exploration and development of the highly prospective Myrtle zinc-lead project which already hosts a sizable JORC resource of 43.6Mt @ 5.04% Zn+Pb. Significant opportunity exists to extend this resource and for the delineation of new nearby deposits. As per the terms of the farm in agreement, Teck will earn 51% of the project by sole funding exploration up to A$5m. Teck may then elect to spend a further A$10m to increase its interest to 70%.
Rox also has an interest in two earlier stage exploration projects. Marqua hosts 30km of strike along a highly prospective limestone unit where drilling has intersected ‘ore grade’ phosphate. At Bonya, Rox is earning into the project by funding A$500,000 of exploration. Rock chips recently assayed as high as 30.7% Cu, 34.1g/t silver and 0.52g/t gold, highlighting the prospectivity of the project.
A recently announced Share Purchase Plan (SPP) will seek to raise a maximum of A$1.8m @ 0.015/share (a historically low share price) which will be used to advance the Mt Fisher gold and nickel project and the Bonya copper project.