Rox Resources: JV partner Teck targets zinc lead near world class McArthur River

Rox Resources (ASX: RXL) and Teck Australia have commenced a drilling program at the joint venture Myrtle zinc-lead project in the Northern Territory, adjacent to the world class McArthur River zinc-lead deposit.

During 2010, McArthur River produced 2.2 million tonnes of ore and 384,000 dry metric tonnes of bulk zinc/lead concentrate. There are plans in place to increase this to 5 million tonnes of ore per annum, and 800,000 tonnes of bulk concentrate.

The drilling program at Myrtle is part of the ongoing exploration program that began in July 2011, undertaken by project operator Teck.

So far, the exploration program has comprised an induced polarization survey and an extensive ground gravity survey, the results of which have been used to select targets for drilling.

The planned drilling program will involve between four and six drill holes for a maximum of 2,000 metres.  Completion of the program will depend on weather conditions.

The Myrtle joint venture

Rox Resources entered into an earn-in and joint venture agreement with Teck Australia, a subsidiary of Canadian mining giant Teck Resources (NYSE: TCK), for Rox’s Myrtle project in May 2011.

To earn an initial 51% interest in Myrtle, Teck is required to spend $5 million at the project within four years, including a minimum of $1 million and 2,000 metres of drilling by July 21, 2012.

Teck can increase its interest in the project to 70% by spending an additional $10 million over an additional 4 years.

The Myrtle project covers 669 square kilometres, and has an Inferred Resource of 43.6 million tonnes grading 4.09% zinc and 0.95% lead, along with a higher grade Indicated Resource of 15.3 million tonnes grading 5.45% zinc and 1.40% lead.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21040/rox-resources-jv-partner-teck-targets-zinc-lead-near-world-class-mcarthur-river-21040.html