Shares in Rox Resources surged 43 per cent yesterday as the announcement of the explorer’s nickel sulphide discovery provided some festive cheer for the market.
Investors sunk almost $1 million into Rox, which climbed from 1.6¢ to close at 2.3¢ yesterday, following the discovery at its Fisher East prospect, 220km north of Leonora.
Rox managing director Ian Mulholland, a geologist with 30 years’ experience, stressed it is “early days” but said the geology has similarities with Xstrata’s Cosmos nickel mine.
“It is a reasonable market reaction considering it’s just before Christmas and investors are normally looking at closing their books for the year,” Mr Mulholland said.
“The fact there has been a response is quite encouraging as it tells us we’re doing the right thing.” Rox reported its first round of reverse circulation drilling had encountered mineralisation over 300m in strike at a depth of 200m.
Preliminary analysis included a 1m intersection with an approximate grade of 4-5 per cent nickel.