Rox Resources Presentation, Resources Roadshow June 2013
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Transcript of Rox Resources Presentation, Resources Roadshow June 2013
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ASX: RXL
Ian Mulholland, Managing Director
Symposium Events Resources Roadshow – 18/19 June 2013
On The Road to Success
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Competent Person Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ian Mulholland BSc (Hons), MSc, FAusIMM, FAIG, FSEG, MAICD, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Mulholland has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Mulholland is a full time employee of the Company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
*Exploration Targets The potential quantity and grades of the exploration targets listed in this presentation are conceptual in nature, although they are based on reasonable expectations, but insufficient exploration to define a Mineral Resource has been carried out at this point in time, and it is uncertain whether further exploration will result in the determination of a Mineral Resource.
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Company Snapshot
Rox Resources Capital Structure
ASX Code: RXL
Issued Shares: 590.8m
Market Cap: $21.9m (at 3.7c)
Cash: $5.3m (31 March)
Enterprise Value: $16.6m
Managing Director: Ian Mulholland (Geologist) Chairman: Jeff Gresham (Geologist) Finance Director: Brett Dickson (Accountant) Exploration Manager: Will Belbin
Experienced Board & Management
Major Shareholders
HSBC Nominees 4.4% Avoca Resources 3.4% Rox Directors 3.1% Top 20 27.9%
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Investment Highlights
Significant nickel sulphide discovery at Fisher East
$15m Earn-in zinc partnership with Teck
Exposure to nickel, zinc, lead, copper, gold & silver
Tremendous exploration upside in all projects
Experienced Board and Management
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Rox Projects
• Mt Fisher Gold, & Fisher East Nickel Project acquired from Avoca in 2011, plus Option to Purchase deal
• Reward Zinc Project, Earn-in by Teck for $15m
• Bonya Copper Project earn-in by Rox for $1.5m
• Marqua Phosphate Project pegged in 2009
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Drilling has discovered a significant new body of nickel sulphides: 6.4m @ 3.8% Ni from 282.6m, from 11.4m @ 2.9% Ni 6.3m @ 2.5% Ni from 211.7m, from 16.3m @ 1.8% Ni 6.2m @ 3.3% Ni from 341.1m 2.7m @ 5.2% Ni from 483.0m
Fisher East Nickel Project
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Fisher East Nickel Location
Ni Occurrences
Mt Fisher Project located 150km north-east of Leinster, WA in North Eastern Goldfields of WA
Mt Fisher Greenstone Belt, 300km long, 655km2 tenement area
Agnew-Wiluna Belt, major nickel mines (55% of WA Ni total; 7Mt out of 12.7Mt), 10 Moz gold,
Nickel sulphide discovery at Fisher East – Opens up a major new area for nickel exploration
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VTEM flown over 3 areas: 2 gold belts and the Fisher East ultramafic belt Large VTEM anomalies along Fisher East Ultramafic 2 stages of RAB drilling
VTEM Targets
1st 2nd
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Recognition of nickel gossan in RAB drilling by Rox geologists
RC drilling on 50m and 100m spacing has defined nickel sulphide mineralisation along over 1.2km of strike
Diamond holes are hitting massive, semi-massive and disseminated sulphides down to over 450m deep, with grades such as 3.8% Ni over 6.4m
Mineralisation still open along strike and also open at depth
Southern Zone defined by new RC drilling
The Story So Far
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A Bit of Geology
Massive nickel sulphides coincident with EM conductor – occur at “basal contact”
Classic komatiite-hosted (Kambalda-type) nickel sulphide deposit type
Variable grade and thickness is typical
Basal contact is over-turned structural complications likely
Lower ultramafic unit hosts disseminated zone
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What’s Coming Up
Mineralisation is starting to be defined in a number of separate zones (shoots)
Intervening holes have hit nickel sulphides, but either thin or low grade
Main Zone is still open at depth in a number of directions
So far Rox has drilled 5,200m RC (33 holes) and 11,500m DD (32 holes)
Drilling on the Main Zone is being conducted using two strategies:
Infill at 50 x 50m
Down dip & plunge extensions at 100 x 100m
Downhole EM in deeper holes
Deeper drilling of new potential Southern Zone
Main Zone Northern Zone
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Drill Density
Drill Density is fairly low for this type of deposit
Mainly 100 x 100m with some infill to 50 x 50m
Compare this to Nova, which is now drilled to over 25 x 25m density
Camelwood is different to Nova – thinner, similar nickel grade but no copper, different types of deposits
Still very early days at Camelwood – more than half of the main conductor is yet to be drilled
Main Zone Northern Zone
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Longer than the length of the Sydney Harbour Bridge and roughly 3x the height.
Deposit Scale
1.2km
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Exploration Potential
Fixed loop ground EM survey along 8km of Fisher East Ultramafic belt identified a series of EM conductors
Strong EM anomalies confirmed at Camelwood, Corktree and Silverbark, and also between Camelwood and Silverbark ( over 3-4km)
Very sparse drilling to date on other EM targets - still to follow up
8km
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Gold Targets
VTEM flown over 3 areas:
2 Gold belts and the Fisher East ultramafic belt
Gold mineralisation at Mt Fisher mine has an associated EM anomaly due to sulphidic host rocks
Dam-Dirks area, major gold-in-regolith anomaly
Gold resource of 973,000 t @ 2.75 g/tAu* (86,000 ounces) defined at Mt Fisher, Moray Reef and Damsel
* Measured: 171,900 tonnes grading 4.11 g/t Au, Indicated: 204,900 tonnes grading 2.82 g/t Au, Inferred: 596,200 tonnes grading 2.34 g/t Au
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Gold Potential
Strong anomalies > 5 g/tAu
Three parallel structures
Multiple “hot spots”
Damsel
Shallow resource of ~54,000 oz, open at depth
Dam Central
High grill intercepts* including:
9m @ 7.1 g/t, 3m @ 17.4 g/t, 4m @ 9.0 g/t, and 8m @ 4.1 g/t
WA DME funding for 2 deep diamond holes
* Drawn from the Company’s 120,000m, 3,500 hole database
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But Wait…There’s More!
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Reward Zinc Project
SEDEX style zinc deposits
Adjacent to McArthur River Mine
Airport, gas pipeline, concentrate loader and port infrastructure all in place
Teck in a $15M Earn-in JV (to 70%)
Myrtle Deposit Resource* 43.6 Mt @ 4.05% Zn, 0.95% Pb, 5.04% Zn+Pb, 2.2 Mt zinc + lead metal
Strong drilling results from Teena prospect incl. 11.3m @ 10.9% Zn+Pb
* Indicated: 5.8 Mt @ 3.56% Zn, 0.90% Pb; Inferred: 37.8 Mt @ 4.17% Zn, 0.95% Pb
Myrtle/Reward
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Multiple Prospects
Significant Zn-Pb mineralisation at Myrtle and Teena
Rox has drilled ~5,000m at Myrtle
Discovery cost of ~ $1.80/t Zn (equiv. to $1.60/oz Au)
Teck to spend $5 million to earn 51% and a further $10 million for 70%
Teena prospect: 5,000m of drilling uncovered in 2012 - $2 million worth of drilling for free!
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Teena Model
4,500m diamond drilling about to start at Teena – fully funded by Teck ($2.75m budget for 2013)
Distance between drill holes 1.2km E-W and 800m N-S
Dimensions of Teena Basin, 1.5 x 1.0 km = Teck size target
First results in 3-4 weeks!
T4A: 22.2m @ 7.18% Zn+Pb, 19g/t Ag, incl. 8.6m @ 9.84% Zn+Pb, 23g/t Ag
T6: 7.3m @ 7.98% Zn+Pb, 5g/t Ag
T4: 11.3m @ 10.9% Zn+Pb, 14g/t Ag
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Bonya Copper Project
Similar in style to nearby Jervois deposits (13.5 Mt @ 1.3% Cu, 25 g/tAg)
279km2 tenement package
Outcrops of visible copper mineralisation at numerous locations, with assays up to 33% Cu and 55 g/tAg
Walk up drill target at old Bonya mine
Very little prior exploration for copper
Farm-in deal, Rox can earn 51% for $500K (2 years) and 70% for extra $1 million (further 2 years)
Geophysical (VTEM) survey in second half of 2013
Drill targets generated
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The Road Ahead
Diamond drilling ongoing at Fisher East Nickel project –diamond drilling currently underway – results ongoing
Drilling at Teena Zinc (4,500m) about to start – first results in 3-4 weeks
Bonya Copper VTEM survey and maybe drilling in second half of 2013
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Contact Rox Resources Level 1, 30 Richardson Street,
West Perth, WA, 6005 T: (08) 9226 0044 F: (08) 9322 6254
E: [email protected] W: www.roxresources.com.au