(MENAFN - ProactiveInvestors - Australia) Rox Resources (ASX: RXL) has launched a share purchase plan to raise around A1.8 million to advance the Mt Fisher gold and nickel project and the newly acquired Bonya copper project, where high grade rock chips of up to 30.7% copper have been confirmed.
The company is offering up to 119.5 million shares at 0.015 each to eligible shareholders, who can subscribe for up to 15,000 worth of shares.
The issue price represents a 17% discount to the volume weighted average price of Rox shares traded on the ASX during the five days immediately prior to the announcement.
Rox recently received laboratory assays from the newly acquired Bonya Copper Project confirming high grade rock chip mineralisation of up to 30.7% copper, 34.1 grams per tonne (g/t) silver and 0.52g/t gold.
The project is located 350 kilometres east of Alice Springs in the Northern Territory, with Rox signing a farm-in agreement with Arafura Resources (ASX: ARU) last month.
What is so important for Rox at Bonya is that there are walk up drill targets at the old Bonya Mine prospect, with the company looking to further evaluate these with detailed mapping, rock and soil sampling prior to drilling.
The 279 square kilometre project is located adjacent to Kentor Gold's (ASX: KGL) 11.9 million tonne at 1.3% copper Jervois deposit, with mineralisation at Bonya shown to be similar to Jervois.
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 in Western Australia, which hosts Sandfire Resources' (ASX: SFR) DeGrussa deposit.
Importantly, walk up drill targets have already been identified at the old Bonya Mine prospect, with Rox looking to further evaluate these with detailed mapping, rock and soil sampling prior to drilling.
Assessment of historic mining activities at the old Bonya copper mine indicates the potential for depth extensions to the outcropping mineralisation, which has never been previously drill tested.
Rox is earning up to a 70% interest in the project via staged exploration expenditure.
Highlighting the potential of Rox's Mt Fisher project, the company recently delivered drilling results that indicate the Greenstone belt could host over a million ounces of gold.
Drilling also located several nickel-copper geochemical anomalies which would provide significant encouragement to Rox's Ian Mullholland.
The work further extended the strong geochemical gold anomalies at the Dam and Dirks prospects within the Mt Fisher gold-nickel project in recent rotary air blast and aircore drilling.
The Mt Fisher project hosts a JORC Resource of 973,000 tonnes at 2.75g/t for 86,080 gold ounces and is strategically located within 150 kilometres of four treatment plants.
A gold-in-regolith anomaly of 7 kilometres in length exists at the Dam, Damsel and Dirks prospects.
The Mt Fisher Mine Area is a large mineralised system with a similar geological sequence to Navigator Resources' (ASX: NAV) 3.6 million ounce Bronzewing Gold Project.
Previous mining from underground and open cut was 27,000 ounces, with the mine currently hosting a remaining 25,000 ounce Resource.
This is likely to increase with drilling indicating extensions for at least 200 metres, with the mineralisation open at depth.