• Maiden Camelwood Mineral Resource of 1.6Mt @ 2.2% nickel
• Mineral Resource contains 34,600 tonnes of contained nickel
• 40% of nickel metal content in higher confidence Indicated Mineral Resource category
• Higher grade core of 520,000 tonnes at 3.1% nickel
• Mineralisation open at depth and along strike

Rox Resources Limited (ASX: RXL) (“Rox” or “the Company”) is pleased to advise that it has completed the maiden September 2013 Mineral Resource estimate for the Camelwood nickel sulphide deposit.The resource estimate comprises 1.6 million tonnes at 2.2% nickel containing 34,600 tonnes of contained nickel. Encouragingly 40% of the resource estimate sits in the higher confidence Indicated Mineral Resource category, using a 1.0% nickel lower cut-off (Table 1). At the higher cut-off grade of 2.5% nickel the Mineral Resource contains 16,200 tonnes of nickel with approximately 47.5% in the Indicated Mineral Resource category (Table 2).

The resource at this higher cut-off grade is 520,000 tonnes at 3.1% nickel. Rox Managing Director, Mr Ian Mulholland commented “We are highly encouraged by the maiden resource estimate at Camelwood which provides an excellent foundation on which the Company can build. It shows that there is a significant amount of nickel sulphide mineralisation at Camelwood, which remains open in all directions, and which should increase with further drilling”. “Further drill testing of the Fisher East area is currently underway to explore for repeats of the Camelwood deposit. We remain confident that our exploration activities will unearth additional deposits across our extensive 655km2 landholding at Mt Fisher. Deposits of the style of Camelwood do not typically occur in isolation. ”

In further commentary Rox Chairman, Mr Jeff Gresham, stated “to be able to complete an intensive drilling program and a resource estimate only nine months after its discovery is a significant achievement and a credit to the Rox team. Exploration and evaluation of the Mt Fisher nickel project is at a very early stage and I am confident that with further exploration and drilling the nickel resources will be significantly expanded.”

The Mineral Resource estimate has been completed in accordance with the guidelines of the JORC Code (2012 Edition). The tables to support the requirements of the JORC Code (2012 Edition) with regard to Sampling Techniques and Data (Section 1), Reporting of Exploration Results (section 2), and Estimation and Reporting of Mineral Resources (Section 3) are appended to this report. Rox’s database was audited by nickel sulphide specialist consultants Optiro Pty Ltd (“Optiro”), who also estimated the Mineral Resource in accordance with the JORC Code (2012 Edition) – see Appendix. A summary of the information used in the Mineral Resource Estimate follows. The deposit is part of the Mt Fisher project and is located approximately 500 km north of Kalgoorlie in Western Australia. Camelwood is a nickel sulphide deposit hosted in an overturned sequence of felsic and ultramafic (plus mafic) units within a belt of arcuate greenstone units. Primary mineralisation consists of pyrrhotite + pentlandite (+ violarite) + pyrite sulphides in massive, semi-massive (net texture) or disseminated forms. The overall deposit style is similar to the Kambalda nickel sulphide deposits in Western Australia.

Discovered in December 2012, Camelwood has been sampled by reverse circulation (RC) and diamond drilling (DD) on an east-west grid pattern ranging from 50 m by 50 m to over 100 m by 100 m. A total of 28 RC holes (4,484 m) and 40 DD holes (14,401 m) were used to define the resource. Holes were generally angled towards the west at varying angles (between 60° and 90°) in order to optimally intersect the mineralisation. Currently mineralisation has been defined as relatively tabular zones, extending over a strike of 1,450 m and up to 500 m down-dip in the central part of the deposit. The thickness of the mineralisation is variable, ranging from 0.5 m to 15 m. The deposit is situated beneath a veneer (10-15m) of transported clays and deeply weathered gossan, while the sulphide mineralisation starts from about 90m below surface. The main lithological units at Camelwood are a felsic hangingwall, ultramafic host and mafic footwall, all of which form an overturned package that strikes 345° and is moderately dipping (~60°-65°) to the east. The mineralisation is hosted within the ultramafic, immediately adjacent to the felsic (hangingwall) contact. Sulphide mineralisation has been modelled into disseminated, semi-massive (net) and massive sulphide domains, based on lithological logging.
Two distinct lodes, the Main and North zones, have been defined, and have been domained using 0.5% Ni and 1.0% Ni cut-off grades. The grade cut-offs appear to correlate well with the disseminated and semi-massive/massive mineralisation boundaries. Three generations of cross-cutting felsic & mafic intrusives have been modelled, all of which transect the mineralisation. No major structural offsets are observed at Camelwood, although low angle/sub parallel shearing is evident in the drill core.

For the purpose of the estimation, all mineralised samples were composited to 1 m intervals, weighted by both length and density. Where density measurements were absent, a density regression calculation using nickel grade was applied. Optiro generated a single block model with a parent cell size of 10 mE by 25 mN by 5 mRL, with sub-celling down to 0.5 mE by 1.25 mN by 0.25 mRL for adequate domain volume resolution. The estimate was completed in CAE Studio 3 (Datamine) using Ordinary Kriging. Five elements were estimated; Ni (%), As (ppm), S (%), Fe (%) and Mg (%), as well as specific gravity. All estimates were completed at the parent cell scale. Validation of the block model shows acceptable correlation of the input data to the estimated grades.

Grade continuity of the mineralisation at Camelwood is good, with a range of 270 m in the major direction in the nickel variogram. Due to the moderate-strong correlation of nickel with the other elements, the same search parameters were used for the estimation of each element. The search ranges were based on approximately half the range of the nickel variogram (150 m by 100 m by 8 m) in order to prevent over-smoothing of the local estimates. Three estimation search passes were used. Hard estimation boundaries were applied between the Main and North domains, as well as between the 0.5% and 1.0 % Ni sub-domains. Between the oxidation interface one-way estimation boundaries were used, i.e. the estimation of the fresh material did not incorporate the oxidised or transitional composites but the oxide and transitional domains used all of the data.

The premise for this is to acknowledge any secondary supergene enrichment of nickel within the oxide profile as it is not considered representative of the primary mineralisation. Violarite (a supergene nickel sulphide mineral) has been observed by the Rox geologists in drill spoils; however, this data was not captured in the logging and was therefore not incorporated into the interpretation of the oxide, transitional and fresh interfaces.
The Camelwood mineralisation has demonstrated sufficient continuity in both geological and grade areas to support the definition of Inferred and Indicated Mineral Resources in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 edition). Indicated Mineral Resources were classified using a nominal drilling density of less than 75 m by 75 m, well defined geological and grade continuity and a high level of confidence in the volume estimate of the mineralisation. In the case of Inferred Mineral Resources, the criteria include a nominal drilling density of greater than 75 m by 75 m and a lower confidence in the geological continuity and volume definition (Figure 1). Approximately 12 % of the total resource has been extrapolated (i.e. the nickel has been estimated in search pass three or assigned), with minimal extrapolation distances beyond drillholes.