Teck Discovers New Potential High-grade Zinc Deposit At McArthur River Mine In Northern Territory: Rox Resources

Rox Resources Limited (Rox Resources) said that its partner, Teck Australia Pty Ltd. (Teck), uncovered significant historic drilling results that indicate a new potentially high grade zinc deposit located 10km due west of the McArthur River zinc mine on the Reward zinc project in the Northern Territory.
The mineralized intersections were drilled between 1976 and 1978 by Mount Isa Mines Ltd (MIM) at the Teena prospect located 15km north of Rox Resources's Myrtle deposit.

Ian Mulholland, managing director of Rox Resources, commented on the findings, saying that it was incredibly exciting to discover such important drill results that may indicate the presence of a potentially significant new zinc deposit close to the McArthur River mine.

Mulholland said, "Teck are to be congratulated on their diligence and thoroughness in tracking down the existence of these drill holes, locating the drill core and compiling the data.

"It also highlights just how prospective our project tenements are, since this is now potentially the third significant zinc deposit, in addition to McArthur River and Myrtle that has been identified in the region. One can draw similarities to the Mount Isa district where a number of significant zinc-lead (and copper) deposits (e.g. Hilton and George Fisher) lie within 20km of the original Mount Isa Mine discovery. Needless to say, we'll be examining our other prospects in great detail as well."

Significant zinc-lead-silver mineralization was intersected over considerable thicknesses as per below:

• Teena 2: 3.8m @ 6.89% Zn, 1.10% Pb, 3.6g/t Ag, 7.98% Zn + Pb from 629.2m

• Teena 4: 2m @ 9.1% Zn, 2.79% Pb, 17.2g/t Ag, 11.89% Zn + Pb from 827.9m

• Teena 4: 11.3m @ 10.7% Zn, 0.20% Pb, 14g/t Ag, 10.87% Zn + Pb from 908.8m

• Teena 4A: 8.6m @ 7.14% Zn, 2.70% Pb, 22.5g/t Ag, 9.84% Zn + Pb from 789.6m; 9.6m @ 6.46% Zn, 0.01% Pb, 17.6g/t Ag, 6.53% Zn + Pb from 800.7m

• Teena 6: 13.1m @ 5.15% Zn, 0.86% Pb, 4.9g/t Ag, 6.02% Zn + Pb from 599.2m

• Teena 7: 7.9m @ 4.41% Zn, 0.34% Pb, 4.75% Zn + Pb from 450.3m

At Teena there are essentially two fences of drill holes spaced 1.2km apart in which mineralization has been intersected with no drilling in between. The mineralization is interpreted by Rox Resources to form a basinal structure, typical of this type of deposit. The potential dimensions of the deposit are 1.5 x 1km which is similar in size to the McArthur River zinc deposit. The middle portion and the area south of hole Teena 6 has yet to be drill tested.

Rox Resources currently has an earn-in and JV agreement with Teck over its Reward project tenements, where Teck is spending $5m to earn an initial 51% interest and can spend up to $15m to earn up to 70%. The underlying tenement is subject to a 2% net smelter royalty payable to Legend International Holdings Inc.

The main prospect on the Reward project tenements has been the Myrtle zinc deposit where a JORC compliant indicated and inferred mineral resource of 43.6 Mt grading 4.09% Zn and 0.95% Pb has been defined by Rox Resources. Drilling has recently been completed at Myrtle by Teck and assay results are expected in about four weeks.