Gold Resource Leaps By 39% To 1.7Moz
Rox Resources Limited (ASX: RXL) has unveiled a significant increase to the mineral resource estimate (MRE) for the Youanmi Gold Project near Mt Magnet in Western Australia.
Drilling and exploration work at the Youanmi Gold Project predominantly in the OYG JV area (Rox 70% and Manager, and JV partner Venus Metals Corporation Limited (VMC 30%) has yielded substantial increases in known and defined tonnages and ounces since acquisition and commencement of drilling in Mid-2019.
Managing Director, Alex Passmore, said Rox has used independent consultants for both the Youanmi Near Surface and Deeps areas. Widenbar Associates completed the Near Surface Resource (Youanmi Near Surface Deposits Resource Estimate, while CSA Global completed the Youanmi Deeps Resource Estimate.
“The release of the updated Youanmi Resource is a milestone for the Company (and the OYG JV) and demonstrates the strong potential to continue to grow high- grade gold resources at the Youanmi deposit,” Mr Passmore said.
“The company is very pleased with both the expansion of the Deeps Resource as well as achieving a considerable increase in inventory to the Near Surface Resource areas including some spectacular results at Grace which contains 109,000 ounces at an average gold grade of 7 g/t Au at shallow depths.
“An overall increase in gold resources of 39% is a great result, as is the A$16 /oz discovery cost realised to achieve these results.
“This resource update also highlights Rox’s low enterprise value per attributable resource ounce which based on the Company’s last reported cash balance (March 2021) and current market capitalisation is calculated to be only A$45 per ounce.
“On the back of the resource upgrade, we will be commencing the Youanmi Mine Feasibility Study.
“Drilling will continue at Youanmi with a focus on the ongoing conversion of inferred material into indicated categories for both the Deeps and Near Surface Resources and extension of the Youanmi Deeps along strike and down dip. In addition, regional grass roots exploration drilling will continue on our extensive tenement interests with the intent of making new discoveries in the area.”
The overall increase of 39% in contained gold has been achieved, with a 52% increase in metal in the Indicated category, and a 31% increase in the Inferred category. Cut-off grades remained the same as those used in the 2018 estimate (i.e. 4g/t Au for Deeps and 0.5g/t Au for Near Surface) and 1.5 g/t Au was used for Grace.
For further information please visit: http://www.roxresources.com.au/