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ROX RESOURCES LIMITED — Investor Presentation 2013
May 12, 2013
65741_rns_2013-05-12_797a1bf4-30c6-4f35-8175-5a343903afcc.pdf
Investor Presentation
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ASX: RXL
Ian Mulholland, Managing Director Sydney Resources Roundup – 14 May 2013
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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
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Rox Resources Capital Structure
ASX Code: RXL
Issued Shares: 590.8m
Market Cap: $23.6m (at 4.0c)
Cash: $5.3m ( 31 March )
Enterprise Value: $18.3m
0.12 3,900
RXL XMM
0.10 3,650
0.08 3,400
0.06 3,150
0.04 2,900
0.02 2,650
0.00 2,400
1-May-12 1-Jun-12 1-Jul-12 1-Aug-12 1-Sep-12 1-Oct-12 1-Nov-12 1-Dec-12 1-Jan-13 1-Feb-13 1-Mar-13 1-Apr-13
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Experienced Board & Management
Managing Director: Ian Mulholland (Geologist) Chairman: Jeff Gresham (Geologist) Finance Director: Brett Dickson (Accountant) Exploration Manager: Will Belbin Major Shareholders HSBC Nominees 4.4% Avoca Resources 3.4% Rox Directors 3.1% Top 20 27.9%
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Investment Highlights
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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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Projects
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- Mt Fisher Gold, &
Fisher East Nickel Project acquired from Avoca in 2011, plus Option to Purchase deal
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Reward Zinc Project, Earn-in by Teck for $15m
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Bonya Copper
Project earn-in by Rox for $1.5m
• Marqua Phosphate Project pegged in 2009
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Fisher East Nickel Project
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Drilling has intersected a significant body of nickel sulphides:
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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 Assayed intervals up to 11% Ni
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Fisher East Nickel Location
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Mt Fisher Project located 150km northeast of Leinster, WA in North Eastern Goldfields of WA
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Mt Fisher Greenstone Belt, 300km long, 655km[2] tenement area
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Agnew-Wiluna Belt , major nickel mines ( 55% of WA Ni total ; 7Mt out of 12.7Mt), 10 Moz gold,
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Nickel sulphide discovery at Fisher East – Opens up a major new area for nickel exploration
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Ni Occurrences
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VTEM Targets
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VTEM flown over 3 areas: 2 gold areas and the Fisher East ultramafic belt
Large VTEM anomalies along Fisher East Ultramafic 1st 2nd 2 stages of RAB drilling
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Camelwood Drill Plan
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RC drilling on 50m and 100m spacing has now defined nickel sulphide mineralisation along over 1.2km of strike
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Diamond holes are hitting massive, semi-massive and disseminated sulphides down to 400m depth, with grades such as 3.8% Ni over 6.4m
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Mineralisation open along strike and also at depth Possible Southern Zone defined by new RC drilling
SOUTHERN ZONE ?
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Camelwood Drill Section
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Nickel sulphides coincident with EM conductor – occur at “basal contact” – classic komatiite-hosted (Kambaldatype) nickel sulphide deposit type Grade and thickness variable typical Basal contact is over-turned at Camelwood structural complications likely Lower ultramafic unit hosts disseminated zone
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Camelwood Long Section
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| Mineralisation starting to be defined in a | |||||
|---|---|---|---|---|---|
| number of separate zones (shoots) | |||||
| Main | Zone | Northern Zone | Intervening holes hit sulphides, but | ||
| either thin or low grade | |||||
| Main Zone still open at depth in a | |||||
| number of directions | |||||
| D23 | So far have drilled 5,200m RC (33 holes) | ||||
| and 7,191m DD (21 holes) | |||||
| Ongoing drilling while good results still | |||||
| coming | |||||
| Main Zone: | |||||
| Infill at 50 x 50m |
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| Down dip & plunge extensions at 100 x 100m |
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| Deeper drilling of new potential | |||||
| Southern Zone | |||||
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Drill Density
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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 will probably cover a much larger area than Nova – although thinner Still very early days at Camelwood
Main Zone Northern Zone
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Camelwood Deposit Scale
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Longer than the length of the Sydney Harbour Bridge and roughly 3x the height.
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1.2km
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Exploration Potential
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8km
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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 Other VTEM anomalies still to follow up
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But Wait…There’s More!
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Reward Zinc Project
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Adjacent to McArthur River Mine Airport, gas pipeline, concentrate loader and port infrastructure all in place
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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 SEDEX style zinc deposits
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Myrtle/Reward
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Teena Model
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T6: 7.3m @ 7.98% Zn+Pb, 5g/t Ag
T4: 11.3m @ 10.9% Zn+Pb, 14g/t Ag
T4A: 22.2m @ 7.18% Zn+Pb, 19g/t Ag,
incl. 8.6m @ 9.84% Zn+Pb, 23g/t Ag
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4,500m diamond drilling scheduled to commence late May at Teena – fully funded by Teck ($2.75m)
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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
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Bonya Copper Project
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Similar in style to nearby Jervois deposits (13.5 Mt @ 1.3% Cu, 25 g/tAg)
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279km[2] tenement package Outcrops of visible copper mineralisation at numerous locations, with assays up to 33% Cu and 55 g/tAg Very little prior exploration for copper Walk up drill target at old Bonya mine Farm-in deal, Rox can earn 51% for $500K (2 years) and 70% for extra $1 million (further 2 years) Geochemical and geophysical surveys, and then drill (2,000m RC) during 2013
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The Road Ahead
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Diamond drilling ongoing at Fisher East – second diamond drill rig mobilising
Drilling at Teena (4,500m) starts late May Bonya drilling (2,000m) planned for this year
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