Rox Resources (ASX: RXL) is strategically well positioned to benefit from any future exploration success at the Myrtle zinc-lead project by global heavyweight Teck Resources (NYSE: TCK) - which is the world's third largest Zinc producer.
Companies the size of Teck are on the 'look out' for Tier 1 projects while offering financial strength and long term funding, with a subsidiary of the giant Teck Australia commencing the 2012 field season at the project earlier in the week - with a $2.1 million budget allocated.
The Myrtle prospect is a SEDEX style deposit, and already hosts a JORC Indicated and Inferred Resource of; 43.6 million tonnes at 4.09% zinc and 0.95%. (Indicated: 5.8 million tonnes at 3.56% zinc and 0.90% lead, with Inferred: 37.8 million tonnes at 4.17% zinc and 0.95% lead).
Teck (operator and sole funder) can earn an initial 51% interest in the project by expenditure of $5 million by July 2014, and can earn up to a 70% interest through the expenditure of $15 million by July 2018.
Rox therefore is very well positioned to reap the benefits from Myrtle if the prospect continues to yield strong mineralisation, and then begins the path to development and production.
Importantly - Rox has already defined 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.
Ian Mulholland, managing director of Rox, commented: "The 2012 exploration program at Myrtle could generate a number of exciting exploration outcomes throughout the year.
"Rox is looking forward to receiving the results of this drilling which will in due course be released to the market as appropriate."
Drilling program looks to depth
Teck has advised Rox that the drilling program will comprise four holes, initially in the Myrtle area, of depths ranging from 300 to 600 metres. This will to test the Myrtle deposit and other identified targets, with then additional drilling contingent on results.
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