Rox Resources (ASX: RXL) today provided its quarterly activities report for the period ending 30 September 2021.
HIGHLIGHTS:
- Continued success from exploration drilling at Youanmi Gold Project
- Aircore drilling program commenced at Youanmi Regional Joint Ventures
- Early settlement of remaining proceeds from 2017 sale of Reward Zinc-Lead Project
- Successful demerger of nickel assets into Cannon Resources
Rox continued its extensive drilling campaign at the Youanmi Gold Project during the quarter, with the aim of expanding and growing the existing resource.
The Company is progressing a number of internal studies at Youanmi as it reviews opportunities for early mining and the return to production at the historic gold mining centre.
Subsequent to the end of the quarter, Rox released metallurgical testwork (6 October 2021) showing the potential for 95.6% gold extraction at Youanmi, compared with the historical recovery rate of 86.8%.
The testwork is one of a number of development studies underway into potential future production at the Youanmi Gold Project. This preliminary part of the study will establish processing pathways to optimise gold recovery prior to progressing to more extensive and detailed “feasibility study level” metallurgical testwork.
Managing Director Alex Passmore commented:
“We are pleased to report on another busy quarter for the Company. During the 3 months to the end of September we successfully launched our nickel spin out Cannon Resources which has since delivered strong returns to shareholders, and we have been prudent in managing our cash levels versus forecast exploration expenditure. Our financial position also benefitted by bringing forward settlement of the deferred component of sales proceeds from the sale of Reward to Teck in 2017.
“Our investment in exploration at Youanmi, Youanmi Regional and Mount Fisher Gold continues to deliver. Exploration drilling at Youanmi has continued to return strong gold intercepts well-outside defined mineral resource envelopes that has us well-placed for a further resource upgrade.
“This couples well with the outcomes of recent metallurgical testwork that highlights the potential for a circa 10% increase in gold extraction levels. Continued progress on these fronts emphasizes the strong upside and outlook for Youanmi.
“Meanwhile a comprehensive review of the Mt Fisher project has highlighted the potential for a variety of gold mineralisation styles in an underexplored belt that features numerous high grade gold occurrences. We look forward to updating the market on the outlook for Mt Fisher in the coming days.”
