(MENAFN - ProactiveInvestors - Australia) Rox Resources (ASX: RXL) has discovered sulphide mineralisation coincident with electromagnetic conductors through reverse circulation drilling on the Fisher East nickel prospect in Western Australia.
The prospect forms part of the Mt Fisher Project, 450 kilometres north of Kalgoorlie, where Rox has previously focused on gold exploration.
The drilling program consisted of five reverse circulation holes, all of which encountered nickel sulphide mineralisation.
Mineralisation has been encountered over a 300 metre strike length along a previously identified electromagnetic conductor, and down to a depth of 200 metres, and remains open at depth and along strike in both directions.
Ian Mulholland, managing director, commented: "This is an exciting discovery for Rox. There has been no prior systematic exploration for nickel in the tenement area, so this is something totally new.
"We have applied a disciplined and systematic approach to the definition and testing of these nickel sulphide targets, and to get such outstanding success at our first attempt is very gratifying.
"It looks like it's a big system and there are other untested conductors we need to look at, so we'll need a lot more detailed drilling to fully evaluate the size and grade distribution of the mineralisation."
Preliminary scans with a portable XRF analyser indicate an approximate nickel grade of 1%-2% in all holes except one, where 4%-5% nickel is indicated. Individual RC chips were analysed up to 15% nickel.
Worth noting is that samples from all holes were moist or wet and therefore the portable XRF analyses may not be reliable, and due to the moisture content of the sample could be understated.
Drilling has only tested the upper, shallowest part of the conductor, with four of the five holes intersecting the mineralisation at about 130 to 140 metres below surface.
The fifth hole intersected the mineralisation at about 200 metres below surface and 70 metres vertically below one of the other holes drilled.
All samples have now been submitted for laboratory analysis with assays expected in late January 2013.
The next steps, once laboratory assays are received, will include mineralogy to determine sulphide species, downhole electromagnetic surveying to determine the location of the best conductive zones, and deeper diamond drilling.
There are also other versatile time domain electromagnetic (VTEM) targets along strike to the north and south that could represent repetitions of the nickel mineralisation.
Rotary air blast drilling at the Corktree prospect, to the south of the Camelwood prospect, recently defined a nickel geochemical anomaly, while the VTEM target to the north has not been rotary air blast drilled.
Mt Fisher
Previous drilling results from Rox's broader Mt Fisher project indicate the Greenstone belt could host over a million ounces of gold.
The Mt Fisher gold project, which covers 655 square kilometres, is well endowed with gold, as well as showing strong potential for nickel.
Rox wholly owns 485 square kilometres and holds an option to purchase 100% of a further 170 square kilometres.
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.
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.
Analysis
Although only early days for Rox at Fisher East, these initial discoveries of semi-massive nickel sulphides have the potential to be a "game changer" for the company.
With no prior systematic exploration previously conducted within the tenement area, there is significant potential for Rox to make a new discovery.
The next steps, once laboratory assays are received, will include mineralogy to determine sulphide species, downhole electromagnetic surveying to determine the location of the best conductive zones, and deeper diamond drilling.
If these next steps are successful, Rox could add substantial value to its Mt Fisher Project.
Another plus for Rox is that the company has exploration time on its side, as it has an Option to Purchase. The exercise price is 3.5 million, with about 18 months of the Option still to run.
