Rox Resources (ASX: RXL) is targeting gold and nickel with its new drilling program at the Mt Fisher gold project in Western Australia just days after securing an extension on the option to acquire the Mt Fisher mine.
The rotary air blast drilling program of 8000 metres to 10,000 metres will cover a number of structural, geochemical and geological targets the company had generated over the last 12 months.
Airborne VTEM and magnetics flown by the company as well as 48 reverse circulation holes totalling 8600 metres had allowed Rox to define a JORC Resource of 973,800 tonnes at 2.75 grams per tonne (g/t) gold for 86,080 ounces of contained gold Resource defined on the project.
This resource is still open down plunge and down dip beneath the open pit.
"We continue to believe the Mt Fisher area has the potential to host large mineral deposits and the RAB drilling will allow us to assess a number of new and exciting target areas," managing director Ian Mulholland said.
Rox was granted a 12-month extension to the option to acquire the Mt Fisher gold mine and associated tenements earlier this week.
The company now has until 30 June 2013 to exercise the option, which covers 170 square kilometres of tenements adjacent to Rox's 485 square kilometres of wholly owned tenements.
Mt Fisher mine has shown geological similarities to Navigator Resources' (ASX: NAV) 3.6 million ounce Bronzewing Gold Project and has also demonstrated its potential to become a multi-million ounce project.
It has a large mineralised system where previous underground and open cut mining has produced 27,000 ounces of gold. Current remaining resources are about 25,000 ounces.
The project is 40 kilometres to the east of the prolific 17 million ounce Yandal greenstone belt and 100 kilometres east of the main Wiluna greenstone belt. The Norseman-Wiluna Belt is believed to host in excess of 30 million ounces of gold.
The Mt Fisher Greenstone Belt has not seen the same level of exploration as the other belts in the region. Many large areas remain unexplored.
Previous drilling on the broader Mt Fisher project area by Rox indicates extensions of the gold mineralisation for at least 200 metres and it is open at depth.
Structural analysis at the project has identified a number of high priority targets, as well as several new targets in settings analogous to those found in the Yandal belt.
Rox could potentially begin generating near term cash flow by evaluating possible treatment options, with four gold treatment plants within 150 kilometres of the company's operations.
One option is to start treatment of ore from the Moray Reef, which is small but quite high grade at 7.5g/t gold.
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