Rox Resources: Bonanza Copper Grades, But Market Unimpressed
Rox Resources released bonanza drill results from its Bonya copper project in Australia's Northern Territory on Monday. In a normal market they would have been met with applause, but instead the company's share price closed down 6.5 percent.
On Monday, Rox Resources (ASX:RXL) released bonanza drill results from its Bonya copper project in Australia's Northern Territory. In a normal market they would have been met with applause, but instead the company's share price closed down 6.5 percent on the back of wider capitulation in the mining sector following weakness in North American markets the previous Friday. The results from Bonya, which are from a follow-up reverse-circulation drill program, include: 8 meters at 7.6 percent copper from 97 meters 13 meters at 5.4 percent copper from 111 meters 5 meters at 9.1 percent copper from 109 meters 11 meters at 3.9 percent copper from 121 meters Initial drill results from Bonya were announced in late October, including 38 meters at 4.4 percent copper from 60 meters. All about Bonya The Bonya project is the subject of an earn-in joint venture from tenement holder Arafura Resources (ASX:ARU), with Rox having the right to earn 70 percent with the expenditure of AU$1.5 million. The project is located in an extremely remote region, some 350 kilometers from the town of Alice Springs, and is interpreted to be a volcanogenic massive sulfide (VMS) deposit. It lies within close proximity to the existing Jervois deposit of KGL Resources (ASX:KGL), which has a current JORC resource of 25.2 million tonnes at 1.1 percent copper and 23.4 g/t silver. Bonya has been worked historically with some mining of surface oxides, but no significant exploration at depth has been undertaken previously. Upon taking up the joint venture, Rox carried out airborne EM surveys of the area, and then subsequently drill targeted the EM anomalies with immediate success. The current mineralized zone is open in most directions and drilling continues, with several other EM targets remaining to be tested.