The Rox Resources Limited (ASX: RXL) share price was a standout performer on the ASX today after the company announced a high-grade gold hit at one its mines.

This announcement saw the Rox Resources share price more than double, with shares closing 108.33% higher at 5 cents. This jump takes the company’s current market capitalisation to around $91 million.

Rox Resources is an emerging Australian minerals exploration company, with advanced gold and nickel projects in Australia.

The company owns a 70% interest in the Youanmi Gold Mine, and wholly-owns the Mt Fisher Gold Project, Fisher East Nickel Project and Colluabbie Nickel Project, all located in Western Australia.

What did Rox Resources announce?

This morning, Rox reported further results from the drilling program being undertaken at the Grace prospect at Youanmi. The current drill program commenced in late May and assay results have now started to flow in.

Rox stated that deepest drilling completed at Grace has intersected impressive gold grades, including:

• 25 metres at 34.79 grams per tonne (g/t) gold from 143 metres, including:
  • 6 metres at 140.7 g/t gold from 150 metres.

According to the company, this was the deepest intercept to date, extending mineralisation both along strike and down-dip.

Commenting on the drilling results, managing director Alex Passmore said:

“These very impressive results are the best we’ve seen and significantly, are from the deepest drilling at Grace to date. The exploration model we are applying at Grace is continuing to work well, delivering what is shaping up to be a substantial high-grade deposit. We look forward to updating the market on further assays as they become available.”

Recent developments

Today’s announcement follows Rox’s share placement and share purchase plan (SPP) recently undertaken to raise $12.7 million. In late May, the company completed a $8.74 million institutional placement at an offer price of 2.4 cents per share. And yesterday evening, Rox announced it has closed its SPP over-subscribed, accepting a total of $4 million.

The funds will be used to underpin the company’s growth plans at the Youanmi Gold Mine and Fisher East Nickel Project. Additionally, Rox has used some of the capital to increase its interest in the Youanmi joint venture from 50% to 70%. As announced on 11 June, the company exercised its option to acquire an additional 20% interest in the joint venture for $2 million cash and $1 million in shares.

The company’s joint venture partner for Youanmi, Venus Metals Corporation Limited (ASX: VMC), also saw its shares rise today, notching a 38.24% gain.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking to add some blue chip shares to your portfolio this month? Then you could do a lot worse than the three ASX shares listed below.

Here’s why I think these are blue chip shares to buy:

CSL Limited (ASX: CSL)

The first blue chip share I would buy is this biotherapeutics company. I believe a recent pullback in its share price has created a buying opportunity for investors. Especially those that are interested in making a long term investment. I believe CSL has an extremely bright future ahead of it thanks to its strong portfolio of therapies and its pipeline of lucrative products. Should some of the latter products hit the market in the future, I believe they have the potential to underpin strong sales and profit growth.

Macquarie Group Ltd (ASX: MQG)

Another blue chip ASX share I would buy is Macquarie. I’m a big fan of the investment bank due to the quality and diversity of its operations and its talented management team. And although its near term performance is likely to be impacted by the pandemic, I expect the company to bounce back once the crisis passes. This is just like it has done in the past through similar events like the global financial crisis. Another bonus is that the company’s shares offer a decent estimated forward yield of 3.75%.

Transurban Group (ASX: TCL)

A final blue chip share to consider buying is this toll road operator. Transurban owns a number of key toll roads roads in Australia and North America. As you would expect, the pandemic has had a negative impact on its performance this year, with traffic volumes falling heavily. However, with restrictions easing, I expect volumes to start to normalise over the coming months and for its earnings to rebound in 2021. I believe this makes it a good time to pick up its shares with a long term view.

More reading

• The ASX winners and losers from the latest S&P index shake-up
• 2 ASX blue chip shares I think every portfolio should hold
• Got $5,000 spare? Consider Wesfarmers shares and these 2 other ASX companies
• Is the Transurban share price a secret bargain?
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why I would buy CSL and these ASX blue chip shares appeared first on Motley Fool Australia.

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