Shares in Rox Resources have more than doubled in value after the Perth-based explorer reported spectacular drilling results at its Reward zinc project in the Northern Territory.
The company said its first drill hole at the Teena prospect at Reward intersected a 116 metre interval of variable mineralisation, while multiple zones of mineralisation were found abote a 2.5 per cent linc and lead cut-off.
The mineralisation is similar to the high-grade McArthur River mine located 10 kilometres away, Rox said.
A second hole has also intersected visually similar mineralisation, Rox said.
The company’s stock is flying on the announcement, up 113.79 per cent or 3.3 cents, to finish trade today at 6.2 cents.
“This is a new discovery, potentially the most significant zinc discovery in Australia since CRA found the Century zinc deposit in the early 1990s,” Rox managing director Ian Mulholland said.
Rox is exploring the tenements under an earn-in and joint venture agreement with Canadian resources giant Teck.
Under the agreement, Teck has the option to spend $5 million by the end of August next year to earn an initial 51 per cent interest, while it can up that stake to 70 per cent by spending an additional $10 million by August 2018.
Teck has spent around $4 million on the Reward project to date.