Rox Resources is expected to announce a large zinc resource at its Teena zinc prospect southeast of Darwin in the Northern Territory.
This is part of the company’s Reward project, a joint venture with Canadian miner Teck, with Teena approximately eight kilometres west of Glencore’s McArthur River zinc mine.
The project, which also includes a focus on the Myrtle deposit, is believed to contain approximately 20 per cent of the world’s zinc reserve, and will be the largest zinc resource in Australia in the last two decades.
It is expected to exceed the scope of contained metal of both South32’s Cannington mine, and MMG’s Dugald River mine.
Teck has elected to increase its interest to 70 per cent by spending a total of $15 million by the end of August 2018. It has already spent $13.8 as of March 30.
Commercial and investor interest in the project is set to be sparked by the improved sentiment around zinc, as well as increasing zinc prices – up around 18 per cent year-to-date.
Rox Resources has been aiming to commercialise its interest in the project since last year, saying last month it will continue to explore the options of either selling it to a third party, or as a spin off into a dedicated zinc company.