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  • Rox Resources' First Diamond Hole Finds Massive Sulphides At Camelwood 0 comments
    Feb 14, 2013 9:11 PM

    Rox Resources (ASX: RXL) has intersected massive sulphide mineralisation with the first diamond hole at its Fisher East nickel sulphide project in Western Australia.

    Importantly, the hole indicates a large body of mineralisation that is still open at depth and along strike.

    The diamond hole MFED001 was drilled 50 metres downdip from RC hole MFEC002 and intersected 6 metres of sulphide mineralisation comprising 3.1 metres of massive to semi-massive sulphide mineralisation from a depth of 282.8 metres and 2.9 metres of strongly disseminated sulphide mineralisation from 285.9 metres.

    "This is a very positive and significant result. To date we have drilled 7 RC holes and now one diamond hole at Camelwood with all hitting sulphide mineralisation," managing director Ian Mulholland said.

    "It confirms that the Camelwood discovery represents significant nickel-bearing sulphide mineralisation down to at least 300 metres vertical below surface and at least 500 metres along strike."

    Laboratory analyses will be available in about four weeks after core logging and cutting are carried out.

    Drilling is continuing at Fisher East with a reverse circulation drilling rig testing strike extensions to Camelwood and other electromagnetic anomalies in the area, and a diamond drilling rig testing the large electromagnetic conductor and depth extensions at Camelwood.

    Camelwood

    A five hole reverse circulation drilling program carried out late last year had discovered the sulphide mineralisation at the prospect in Fisher East, where Rox had previously focused on gold exploration.

    This returned assays with widths of up to 20 metres and grades up to 3% nickel.

    Mineralogical work on a single sample from the hole that returned the intercept of 1 metre at 3% nickel indicates relatively coarse-grained supergene (partially oxidised) nickel sulphide mineralisation.

    The mineralisation is comprised of violarite and pyrite as the dominant minerals, and subordinate magnetite and chalcopyrite.

    Violarite is usually the supergene product of pentlandite, which is expected to occur deeper in the system.

    Arsenic and antimony, both potential deleterious elements, levels are low, and platinum group elements have yet to be determined.

    Drilling was also interpreted to have intersected just the top part of the mineralisation while additional holes have since extended the strike length to 500 metres from 300 metres.

    Mulholland had previously noted that more drilling would be needed to fully evaluate the size and grade distribution of the system and other untested conductors.

    Mt Fisher Project is located 450 kilometres north of Kalgoorlie and remains well endowed with gold.

    Rox wholly owns 485 square kilometres and holds an option to purchase 100% of a further 170 square kilometres.

    Analysis

    The confirmation that the massive nickel-bearing sulphide mineralisation extends deeper beyond the original intercepts made, further highlights the potential of the project to be a "game changer" for Rox.

    Catalysts include the reverse circulation drilling that is likely to further extend the strike length of Camelwood and potentially discover further nickel sulphides at the other electromagnetic anomalies as well as further evidence of massive sulphide mineralisation at depth from the diamond drilling program.

    To top it off, Rox is well funded and supported by the market as demonstrated by the strong support from existing and new shareholders in the recent $4.95 million placement - which builds up the company's cash reserves which were close to $1.9 million at the end of 2012.

    While the Rox market valuation has come along way very fast, results from the Fisher East nickel project are such that this is just the start of even bigger things to come as exploration unfolds.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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