Rox Resources (ASX: RXL) has revealed that partner Teck Resources (NYSE: TCK) has obtained valuable historic zinc drilling results from the Teena prospect that shows its potential to be a new potentially high grade deposit.
In addition to the notable intersections of high grade zinc mineralisation, the prospect is also strategically located 10 kilometres west of Xstrata's (LON: XTA) McArthur River Zinc Mine and 15 kilometres north of Rox's 43.6 million tonne Myrtle deposit.
Highlight historical intersections include:
- 11.3 metres at 10.9% zinc plus lead, and 14 grams per tonne (g/t) silver from 908.8 metres;
- 8.6 metres at 9.84% zinc plus lead, and 23g/t silver from 789.6 metres;
- 3.8 metres at 7.98% zinc plus lead, and 4g/t silver from 629.2 metres; and
- 13.1 metres at 6.02% zinc plus lead, and 5g/t silver from 599.2 metres.
The mineralised intersections were drilled between 1976 and 1978 by Mount Isa Mines at the Teena prospect, part of the Reward Zinc Project in the Northern Territory.
Ian Mulholland, managing director of Rox Resources, said it was incredibly exciting to discover such important drill results that may indicate the presence of a potentially significant new zinc deposit close to the McArthur River Mine.
"Teck are to be congratulated on their diligence and thoroughness in tracking down the existence of these drill holes, locating the drill core and compiling the data.
"It also highlights just how prospective our project tenements are, since this is now potentially the third significant zinc deposit, in addition to McArthur River and Myrtle that has been identified in the region.
"One can draw similarities to the Mount Isa district where a number of significant zinc-lead, and copper, deposits - e.g. Hilton and George Fisher - lie within 20 kilometres of the original Mount Isa Mine discovery. Needless to say, we'll be examining our other prospects in great detail as well."
The potential dimensions of the Teena prospect are 1.5 by 1 kilometre, which is similar in size to the McArthur River zinc deposit.
Only wide spaced drilling has been undertaken on the prospect which shows the potential for over 1.5 kilometres in strike length.
The main prospect on the Reward project tenements has been the Myrtle zinc deposit, where an Indicated and Inferred JORC Resource of 43.6 million tonnes at 4.09% zinc and 0.95% lead has been defined.
Rox has also outlined an exploration target of 100-200 million tonnes at between 10-12% zinc and lead for Myrtle, which lies adjacent to the world class McArthur River zinc-lead deposit.
Drilling has recently been completed at Myrtle by Teck and assay results are expected in about four weeks.
Teck will now undertake re-logging of the historic drill core, further data integration and interpretation in 3D, prior to planning an exploration program.
Mulholland told Proactive Investors Teck plans to drill the deposit as soon as it can, but that will depend on drill rig availability and access.
Joint venture structure
Rox currently has an earn-in and joint venture agreement with Teck over its Reward project tenements, where Teck is spending $5 million to earn an initial 51% interest and can spend up to $15 million to earn up to 70%.
The underlying tenement is subject to a 2% net smelter royalty payable to Legend International Holdings.
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