Rox Resources (ASX: RXL) today provided its annual report to shareholders for the year ended 30 June 2022.
In his letter to shareholders, company chairman Stephen Dennis said that the 12 months to 30 June were underpinned by works focused on the eventual restart of operations at the company’s flagship Youanmi Gold Project in Western Australia.
One of the highlights for the year was the near doubling of the total mineral resource at Youanmi, from 1.7Moz Au at 2.85 grams per tonne to 3.2Moz Au at 3.57 grams per tonne. This resource consists of a 2.2Moz Au at 6.9 grams per tonne underground resource, and a 1Moz Au surface resource at 1.74 grams per tonne. Rox’s discovery cost is just $7 per resource ounce which is well below industry standard.
The Youanmi resource remains open along strike and down dip, so there is significant potential for the resource to increase in size with further drilling. An additional focus for upcoming drilling programs will be inferred to indicated resource conversion which will highlight the high-grade nature of the mineralisation that we see at Youanmi.
Youanmi was mined for 10 years until operations ceased in 1997 when the Australian dollar gold price was around $400 per ounce, and it is our firm belief that we will soon see mining operations recommence at Youanmi.
Studies for the potential mine are progressing well. In April we appointed MACA Interquip to complete feasibility-level metallurgical testwork for the Youanmi open pit and underground Resources design, as well as the costing of a dual-purpose processing plant to scoping level accuracy.
The Company expects concept level project economics to be very robust, and we will continue to rapidly pursue appropriate development pathways, with the aim of delivering a Scoping Study this year with further studies to follow.
In late June, Rox was delighted to welcome experienced mining engineer Robert Ryan to the Board as a non-executive director. Mr Ryan brings more than 20 years of experience in the resources sector including exploration, resource development, feasibility studies, project development, mining operations and corporate merger and acquisitions.
In March, Rox raised $4 million through a placement of 10 million shares at $0.40 per share to institutional investors. It was very encouraging to have our largest shareholder, Hawke’s Point, participate in the placement on a pro-rata basis to its existing interest.
In August 2021, the company successfully spun-out and listed its nickel and base metals assets via the IPO of Cannon Resources Limited, which has performed strongly since listing and has hence unlocked significant value for Rox shareholders.
Mr Deniss said the next 12 months are shaping up to be transformational for Rox. The company will continue to grow the resource base and explore pathways to development at Youanmi, as well as a providing a resource update at Mt Fisher as the company continues with its systematic exploration programs.