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Rox Resources to acquire Bronzewing South Gold Project in WA

Historical drilling points to untested gold anomalism across the prospect.
Rox Resources to acquire Bronzewing South Gold Project in WA
The project is near the shuttered Bronzewing mine

Rox Resources Ltd (ASX:RXL) has acquired an option to purchase the Bronzewing South Gold Project in Western Australia from private company Carnegie Exploration Pty Ltd.

The acquisition will be through Rox’s 100%-owned subsidiary Helios Gold Ltd, which is expected to list on the ASX via an initial public offering in the near future.

Bronzewing South will complement Helios’ existing Mt Fisher Gold Project, which hosts a mineral resource of 1 million tonnes at 2.7 g/t gold containing 89,000 ounces.

Historical assays reveal potential

Bronzewing South comprises seven tenements covering 115 square kilometres near the shuttered Bronzewing Gold Mine.

Historical assays from aircore drilling include 4 metres at 6.53 g/t gold from 56 metres and 4 metres at 2.03 g/t from 108 metres.

Previous reverse circulation (RC) drilling recorded: 4 metres at 2.36 g/t from 124 metres; 1 metre at 5.67 g/t from 127 metres; and 1 metre at 4.42 g/t from 230 metres.

 

The aircore results indicate untested gold anomalism along a trend east of where previous exploration had focused.

Examination of these results show that a depressed regolith profile exists at the prospect, similar to that originally found in early drilling over the 3.6 million-ounce Bronzewing ore body.

Tenements northwest of Bronzewing are along strike from the plus-1 million ounce Orelia gold deposit being developed by Echo Resources Ltd (ASX:EAR).

The extension of the shear hosting Orelia has been interpreted to continue into the Helios tenements.

Terms of the option agreement will proceed in several stages:

  • A non-refundable deposit of $20,000 cash for a six-month option period.

  • Payment of $80,000 cash and issue of 2 million Helios shares to Carnegie upon Helios’ successfully listing on the ASX.

  • A further issue of $725,000 in cash or Helios shares when an inferred resource of greater than 250,000 ounces of gold is announced.

  • $1.25 million in cash or Helios shares when an indicated resource of greater than 500,000 ounces is announced.

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Rox Resources Ltd Timeline

Newswire
October 14 2016

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