(MENAFN - ProactiveInvestors - Australia) Rox Resources (ASX: RXL) recently discovered sulphide mineralisation on the company's Fisher East nickel prospect in Western Australia, and has now received strong support from new and existing shareholders in a 4.95 million capital raising.
Rox also announced today that the first two new reverse circulation holes at the Camelwood prospect intersected sulphide mineralisation.
The new funds are via placement of 90 million shares at 0.055 to professional and sophisticated clients of Patersons Securities Limited, who acted as lead manager.
Ian Mulholland, managing director of Rox, said that the placement exceeded expectations, and that the additional funding provides certainty for the immediate future funding of activities at Fisher East and across the company's portfolio of projects.
"The capital raising has introduced some significant institutional investors to our share register which is a very pleasing outcome.
"These funds will be principally utilised to carry out an aggressive drilling program at Fisher East, which will include follow up drilling at Camelwood, and several other identified nickel sulphide targets along strike from this prospect."
The Fisher East area is located within Rox's Mt Fisher Project tenements. Worth noting the project area is 220 kilometres north of Leonora, and has the potential to host a multi-million ounce gold inventory and also nickel sulphide mineralisation.
New sulphide mineralisation discovered at Camelwood
Highlighting the potential of Fisher East, the first two new reverse circulation holes at the Camelwood prospect have intersected sulphide mineralisation.
The importance of the latest discoveries are that the sulphide mineralised system has been extended another 100 metres north and south from previous drilling, which now indicates a strike length of over 500 metres - which remains open.
Mulholland said that the company are encouraged with the results from these first two reverse circulation holes.
Rox said that from visual assessment the company's geologists believe that the grades will be broadly consistent with previously reported reverse circulation results. Laboratory assays should be available in 3-4 weeks.
Exploration continues at speed with diamond drilling now underway which will test beneath the reverse circulation holes.
The first (MFEC006) was drilled 100 metres south of the previous southernmost hole (MFEC003), and intersected 3 metres of strong disseminated sulphide mineralisation from
125 metres downhole.
The second (MFEC007) was drilled 100 metres north of the previous northernmost hole (MFEC005) and intersected 3 metres of strong disseminated (including some semi-massive) sulphide mineralisation from 118 metres downhole, followed by 8 metres of moderate-strong disseminated sulphide mineralisation.
Today's new sulphide discoveries at Fisher East build upon the recent discoveries of semi-massive nickel sulphides and further highlight the potential of the project to be a "game changer" for the company.
Rox is well funded and supported by the market, highlighted by the strong support from existing and new shareholders in today's 4.95 million placement - which builds up the company's cash reserves which were close to 1.9 million at the end of 2012.
The next steps for Rox is diamond drilling with results expected in 3-4 weeks, and if successful, this could add substantial value to the company's Mt Fisher Project.
The nickel sulphide discoveries are located on tenements that Rox has under an Option to Purchase. The exercise price is 3.5 million, with approximately 18 months of the Option still to run - providing the company with plenty of exploration time on its side.