Australian gold and nickel company, Rox Resources Limited (ASX: RXL) in conjunction with its joint venture partner Venus Metals Corporation Limited (ASX: VMC) is pleased to report a significant increase to the mineral resource estimate (“MRE”) for the Youanmi Gold Project near Mt Magnet, WA.
HIGHLIGHTS
- Youanmi Total Mineral Resources increased by 466 koz (+39%) to 1,656 koz of contained gold (Au). Junction and Link mineralisation to be incorporated in later models.
- Mineral Resource Estimates for both Youanmi Near Surface and Youanmi Deeps Resources have realised significant increases with 48,000 metres of combined diamond and RC drilling completed and results incorporated into this estimate. Exploration work is ongoing.
- All in exploration costs for the project since the last published resource (2019) indicates a $16 per ounce discovery cost for this addition to the resource, well below industry averages.
- Grace Maiden Resource defined to contain 109koz of contained gold at 7 g/t Au with upside potential remaining.
- Near Surface Resource increased by 50% to 800koz Au in total.
- Deeps Resource shows impressive growth (+30%) to 856koz Au with high grades preserved (7.9g/t Au resource average)
- Increase in Au metal ounces per vertical metre for Youanmi Deeps over key potential mining depths.
Drilling and exploration work at the Youanmi Gold Project predominantly in the OYG JV area (Rox 70% and Manager, VMC 30%) has yielded substantial increases in known and defined tonnages and ounces since acquisition and commencement of drilling in Mid-2019.
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 June 2021 – refer Table 1) while CSA Global completed the Youanmi Deeps Resource Estimate (Report Youanmi Deeps Youanmi Deeps Mineral Resource Estimate June 2021 – refer Table 1).The previous resource for Youanmi was published in 2018 (Widenbar).
Managing Director Alex Passmore commented:
“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 highgrade gold resources at the Youanmi deposit. 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 $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 $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.”
