Rox Resources’ share price has lost some of the headway it gained from a nickel discovery late last year, with drilling results suggesting the explorer has yet to hit the “sweet spot”, an analyst says.
Assays from reverse circulation drilling have confirmed the Fisher East nickel discovery within the Mt Fisher project, 450km north of Kalgoorlie, with results returning generally higher grade and thicker nickel intercepts than previously logged, Rox said
Rox last month released preliminary results scanned with a portable XRF analyser, which indicated an approximate nickel grade of 1-2 per cent in most holes, with the exception in one where 4-5 per cent nickel was indicated.
News of the discovery last month saw shares in Rox skyrocket 512 per cent from 1.6c to 9.8c.
In its statement today, Rox said the best assay result was 20 metres at 1.1 per cent nickel from 159m, including 6m at 1.5 per cent from 159m and 5m at 1.5 per cent nickel from 169m.
Rox said the results suggest only the top part of the system has been drilled at this stage.
Shares in Rox shed 3.2c, or 32.65 per cent, to close at 6.6c today.
Patersons analyst Rob Brierly said the results were in line with expectations and suggest the “sweet spot is yet to be identified”.
“Results corresponded well with preliminary XRF results although there was some hope that the preliminary results would prove conservative. Intercept widths were as expected,” he said.
Rox said it would now start the next stage of exploration which will include further ground electro-magnetic surveys and deeper diamond core drilling.
