https://www.*********.com.au/2014/08/08/encouraging-nickel-hits-boost-rox-resources/
*********.com.au
Gavin Wendt August 8, 2014 Encouraging Nickel Hits Boost Rox Resources By Gavin Wendt | More Articles by Gavin Wendt Rox Resources is a well managed explorer with interests in nickel, gold and zinc within Western Australia. The next major milestone for investors is a revised JORC-compliant nickel resource at Fisher East. Corporate DetailsStatus: Advanced ExplorerSize: Small CapCommodity Exposure: NickelShare Price: $0.04912-month Range: $0.025 – 0.063Shares: 745m, Options: 29mTop 20: 20%Net Cash: $2.6mMarket Value: $37mKey ParametersRating (✓out of 5) Quarterly StatisticsManagement Quality✓✓✓✓✓Q2 2014 Exploration Spend: $0.670mFinancial Security✓✓✓✓Q2 2014 Admin Spend: $0.265mProject Quality✓✓✓✓✓Exploration Spend 72%, Admin Spend 28%Exploration / Resource Potential✓✓✓✓✓Q3 2014 Forecast Exploration Spend: $0.4mProject Risk✓✓✓✓✓Q3 2014 Forecast Admin. Spend: $0.3mWe introduced Rox Resources to our Portfolio during May after following the stock closely for several years via our Watch-list. Our decision was based on a desire to expand and strengthen our nickel exposure by including another high-quality, advanced nickel exploration play within our coverage. Rox ticks all the appropriate boxes by providing exposure to a large-scale nickel sulphide exploration project that’s generating wide intercepts, robust grades, along with a JORC-compliant resource that’s set to grow further.Importantly, Rox is now beginning to generate growing market recognition with respect to its Fisher East nickel sulphide project in Western Australia. Whilst the focus of nickel investors in Australia recently has been on the burgeoning prospectivity of the Fraser Range province in Western Australia (via Sirius Resources’ spectacular nickel discoveries at Nova and Bollinger), the success of companies like Rox and Poseidon Nickel are generating renewed interest in more traditional Western Australian nickel provinces.Rox’s share price over the past 12 months has remained somewhat range-bound between $0.03 on the downside and $0.06 on the upside. We believe this is likely to change however and that higher prices are inevitable, based on the consistently strong drilling results being generated from Fisher East, which reinforce the exciting regional exploration picture. As drilling we continued, we look forward to the next major share price catalyst, which will be the release of an enhanced JORC resource during H2 2014.Recent ActivityBonya Project, NT – Drilling Set to CommenceAlthough nickel is the company’s primary focus, there is more to the Rox story. The company this week announced results from a ground EM survey conducted at its Bonya project, situated 350km east of Alice Springs in the Northern Territory. The project lies adjacent to KGL Resources’ (ASX: KGL) Jervois copper deposit, which hosts a current JORC-compliant Mineral Resource of 13.5 Mt @ 1.3% Cu, 25g/t Ag.Rox signed a Farm-in Agreement with Arafura Resources (ASX: ARU) during 2012 to explore the Bonya project. Rox can earn a 51% stake in the copper, lead, zinc, silver, gold, bismuth and PGE mineral rights at Bonya by spending $0.5M within the first two years. The company can then elect to earn a further 19% (70% in total) by spending a further $1M within a further two-year period. Once Rox has earned either a 51% or 70% stake, it can form a joint venture with Arafura to further explore and develop the area.Three previously identified VTEM anomalies (03, 04 & 05) have been re-surveyed and the ground EM results have proven to be very similar to the original VTEM, with similar responses and interpreted conductive plates. One of the anomalies (BVTEM_04) has associated copper carbonate (malachite) staining on the outcropping rocks and a copper-in-soil anomaly, suggesting the presence of copper mineralisation below.The targets are quite clearly related to a fold structure, with the old Bonya mine located in the nose of the fold (possibly along the fold axis), and the EM targets lying along strike along the flanks of the fold. An RC drilling program is scheduled to commence during late August to test these targets and if successful, other targets generated by the VTEM survey will be prioritised for drill-testing.Fisher East Project, WA – High-Grade ResultsOver recent weeks Rox has published a series of encouraging announcements related to RC drilling at its flagship Fisher East nickel sulphide project in Western Australia, specifically relating to high-grade assay results from the Musket prospect, which forms part of the overall Fisher East nickel sulphide project. Some of the best results from the current program comprise:MFEC066: 3 metres @ 5.9% Ni from 189 metres down-hole, including 1 metre @ 14.8% Ni of massive sulphide from 190 metres down-holeMFEC067: 17 metres @ 2.1% Ni from 161 metres down-hole, including 1 metre @ 8.9% Ni of massive sulphide from 161 metres down-holeMFEC071: 4 metres @ 8.4% Ni from 178 metres down-hole, including 2 metres @ 14.7% NiMFEC072: 5 metres @ 8.4% Ni from 205 metres down-hole, including 3 metres @ 12.1% Ni and 1 metre @ 20.7% Ni from 206 metres down-hole
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