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Rox Resources Finds Up To 32.9% Copper In Rock Chip Sampling At Bonya

Rox Resources' (ASX: RXL) recent rock chip exploration at the Bonya copper project in the Northern Territory is unveiling the extensive, high grade nature of the deposit with copper grades of up to 32.9% and new and existing prospects located over 20 kilometres of strike.

This is testament to managing director Ian Mulholland's decision to farm into the copper prospective project that is already drawing comparisons to Kentor Gold's (ASX: KGL) 13.5 million tonne at 1.3% copper Jervois Project located adjacent to Bonya.

Samples of outcropping oxide (malachite, azurite) and sulphide (chalcocite) copper mineralisation have been collected from numerous old workings within the western tenement area, with rock chip assays of up to 32.9% copper, 54.8 grams per tonne (g/t) silver and 0.64g/t gold.

Ian Mulholland, managing director, commented: "We are excited by these new finds of outcropping oxide copper mineralisation because they demonstrate the outstanding prospectivity of the tenements over an extensive area.

"To have so many copper occurrences augers well for our success in locating further significant copper deposits here."

Mulholland told Proactive Investors today: "The nearby Jervois deposits are being developed by Kentor Gold and they have a significant mineral resource.

"There is no reason, given exploration success, that we couldn't develop similar resources on the Bonya tenement in due course."

Regionally, the copper mineralisation occurs within the Bonya Schist which also hosts the Jervois copper deposits some 20 kilometres to the east.

At Bonya and several other prospects there are old workings with small stockpiles of copper oxide ore.

These stockpiles were generated in the 1950s and 1960s when the copper oxide ore was being collected for use as flux in the Mount Isa copper smelter.

Transport of this material stopped abruptly when the copper price fell and the ore stockpiles were abandoned. It appears that there has been no drilling at or below any of these old workings.

Promising prospects

The most significant prospects identified to date include:

- Green Hoard, where a large historic trench 80 metres long, 4 metres wide and 2 metres deep, and several stockpiles of copper oxide and sulphide ore were found;
- Ashmara, where old diggings were found;
- Kings Legend, where a trench and shaft are present;
- Green Goanna, where an old shaft was found;
- White Violet, where several large trenches and extensive oxide copper mineralisation over a 200 metre strike length was found;
- Fat Cow, where stockpiled (drummed) oxide ore was found; and
- Goat, where outcrop of copper oxide was observed.

These are in addition to the old workings at Bonya that have previously been reported.

Farm-in

Rox is earning up to a 70% interest in the Bonya Project through a farm-in agreement with Arafura Resources(ASX: ARU).

The company is required to spend $500,000 within the first two years to earn an initial 51% interest in the copper, lead, zinc, silver, gold, bismuth and platinum group elements mineral rights.

Exploration plan

Rox recently raised A$1.4 million in a share purchase plan, with the funds to be partly directed to exploration at Bonya.

The next stage of exploration at the project will involve geochemical and geophysical surveys over areas of demonstrated copper outcrop or anomalism.

Drilling of the targets generated is slated to take place in the first half of 2013.

Analysis

While early days at the Bonya Copper Project, the presence of so many copper occurrences bodes well for success in locating further significant copper deposits.

This is testament to managing director Ian Mulholland's decision to farm into the copper prospective project.

The project's location adjacent to Kentor Gold's 13.5 million tonne at 1.3% copper Jervois deposit is significant, with mineralisation at Bonya already showing similarities to Jervois and an indicator to potential future success.

Another major advantage is that the geological setting is similar to other areas such as Mount Hardy in the Northern Territory, and of a similar deposit type to those found in the Doolgunna district which hosts the DeGrussa deposit.

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