Rox Resources' (ASX: RXL) recent success at the Camelwood prospect, within the Fisher East nickel project in Western Australia, has seen Patersons Securities maintain its Speculative Buy rating on the company.
The company revealed yesterday the first diamond drill hole at Camelwood had intersected 11.4 metres at 2.9% nickel from 282.6 metres, including 2.9 metres at 4.7% nickel.
Diamond drilling is continuing which will provide more results in the near-term.
The following is a copy of the report.
- Assay results from the first diamond hole at Camelwood delivered 11.4m at 2.93% Ni from 282.6m, which included 6.4m at 3.8% Ni including 2.9m at 4.66% Ni.
- The assay results compare favourably to the preliminary indications, which were 3.1m of massive to semi-massive sulphides from 282.8m followed by 2.9m of strongly disseminated sulphides.
- The next 4 diamond holes have assay results pending. Preliminary indications are promising, although the widths of semi-massive sulphides are relatively thin.
The best indication is in the most recent hole (MFED005) which intersected 1.7m of massive sulphides and 2m of disseminated sulphides from 384.6m.
- Assay results from RC drilling were also reported with 1m at 2.48% Ni from 126m and 3m at 1.82% Ni from 118m.
- RC drilling has been suspended for a week due to a rig breakdown whilst diamond drilling is ongoing but hampered by not being able to step out to the east because of an ungranted exploration license application, which should be sorted out within the next few weeks.
- The assay results from the first diamond hole have exceeded expectations and displayed a nickel grade at the high-end of what we anticipated whilst the width of mineralisation is broader than initially indicated (11.4m versus visual indications of 6m).
- Whilst follow-up diamond drilling has encountered lesser widths of semi-massive to massive sulphides, there is sufficient encouragement to suggest that Camelwood is a significant discovery.
- We believe that the granting of the exploration license application to the east will facilitate the drilling of deeper and more targeted diamond holes. This should also result in an additional diamond drill rig being deployed.
- We retain our speculative buy rating with further assay results due in the next 2-3 weeks
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