THE WEST AUSTRALIAN
Friday, 21 December 2012 09:15
Rox Resources has become the latest small-cap resources company to experience an extraordinary share price spike, jumping more than 200 per cent in two days following a blue sky nickel discovery at its Fisher East project.
The Perth based explorer, valued at $25 million, jumped from 1.6c on Tuesday to 5.1c yesterday - an increase of 218 per cent - on heavy volumes. More than 20 per cent of the company's stock was traded yesterday.
The spike stems from the Fisher East find, where the company said nickel sulphide mineralisation was encountered over a 300m strike length and down to 200m in depth.
The find is still speculative, with the company using a portable X-ray fluorescence analyser for the results, meaning they may not be representative of the whole sample.
The analyser found a grade of about one or 2 per cent in all its five drill holes, with one hole reporting up to 5 per cent.
Fisher East, about 50km south-east of Wiluna, is near BHP Billiton's Mt Keith nickel mine.
The discovery is on tenements Rox has under an option to buy for $3.5 million.
The company has 18 months to decide whether to commit to the land.
Despite the area being well explored for nickel, Rox managing director Ian Mulholland said there had been no previous systematic exploration for nickel in the tenement area.
"So this is something totally new," he said.
"It looks like it's a big system. And there are other untested conductors we need to look at, so we'll need a lot more detailed drilling to fully evaluate the size and grade distribution of the mineralisation."
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