I want to tell you about a champion team we have at Rox Resources. Just to give you a snapshot of the company, we’ve got about 400 million shares on issue now, thanks to the GFC, at our current share price of 2.6 cents, market cap just over $10 million, cash of about $2.4 million. So our enterprise value for our fabulous projects is only $8 million and I think you’ll agree after this talk, we’re way undervalued.
We have a very experienced Board. Our Chairman Jeff Gresham is a 20 year western mining man, managing director of a number of gold companies and has 30 years in business operation, mining and development. And our other director Brett Dickson is an accountant with about 30 years’ experience in the sector as well.
So why invest in Rox? Well first of all we’ve got great projects and strong management to bring the projects to fruition and that presents tremendous upside value. If we can bring off what we want to do with these projects, our share price isn’t going to be 2.6 cents for long. We have proved ourselves over the last eight years to be an effective explorer and have put the money into the ground. Last year out of our exploration budget, we spent over 50 per cent on drilling, so that produces results for shareholders.
Our first project is Mt Fisher in WA about 450 kilometres north of Kalgoorlie. The second is the Myrtle project in the Northern Territory up near the Gulf; it’s actually not far from the McArthur River Zinc Mine, which is one of the world’s great zinc deposits. And our third project Marqua is in the Northern Territory on the edge of the Georgina Basin.
With our team captain, Mt Fisher, we’ve announced our maiden JORC resource on the project - 6,000 ounces. Mt Fisher is located within 150 kilometres of four treatment plants - Jundee, Wiluna, Bronzewing and Darlot and they are certainly open to business with toll milling. The location is in the main greenstone belt that runs from Wiluna in the north to Kalgoorlie in the south and has a number of gold and nickel mines along it. So it’s early days, but we can see there’s real potential to spend exploration dollars at Mt Fisher and prove up some fairly sizeable resources.
The Myrtle Zinc Project, which I call our most valuable player because potentially this project could really put a rocket under our share price, if we have some success there. It’s located in the Northern Territory about 20 kilometres south of the McArthur River Zinc Mine. The infrastructure is in place, there’s a ship loader for export of concentrate, gas pipeline which is used for power, a major airport at McArthur River and there’s bitumen roads in and out. So a lot of infrastructure there that’s very helpful to us.
The Marqua Phosphate Project is located on the southern margin of the Georgina Basin which contains about 90 per cent of Australia’s phosphate resources. Generally the grade of deposits is between 15-20 per cent phosphate and we’re certainly seeing lots of drill intercepts on our property at that sort of grade, the strike length that we’re exploring is 30 kilometre long. There is potential for at least 50-100 million tonnes and probably more. Drilling will be the challenge in this project and we will need to bring in a partner, so probably we’ll do some sort of corporate deal on this project this year.