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Nickel find injects life into Rox shares
Nickel find injects life into Rox shares

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.