Rox Resources (ASX: RXL) – develop Youanmi Gold Project

 

COMPANY SCOREBOARD

Pro PlusProCon PlusCon
  • Board has the intention to develop the project
  • Hawke’s Point as the cornerstone investor
  • High AU gold price
  • Some existing infrastructure
  • Regional potential
  • Old mine
  • Poor top20 shareholder register
  • Scope Study not accurate
  • Small scale

ABOUT COMPANY

Rox Resources (RXL) (https://www.roxresources.com.au/) explores gold in Western Australia. Its flagship project is the Youanmi Gold Mine in WA. It also owns the Mt Fisher gold project.

CAPITAL STRUCTURE

Hawke’s Point holds 22.2m shares.

The company had a share consolidation of 15:1 in July 2021.

FLAGSHIP ASSETS

Youanmi Gold Project WA

  • The OYG JV (Rox 70% all minerals) -covers 65km2, is circa 10km x 7km wide, and surrounds the Youanmi Gold Mine and nearby extensions
  • The Currans Find JV (Rox 45%, all minerals) –covers 4km2
  • The VMC JV (Rox 50% gold rights) -covers 302km2
  • The Youanmi JV(Rox 45% gold rights) -covers 270km

Project Data

In October 2022, the company released the Scope Study which proposed a 480ktpa plant and used the combination of gold–in–concentrate and carbon–in–leach bullion as the process methodology to generate around $300m profit at $2,600/oz. However, it only applied 5% to NPV.

In April 2023, it issued 110m shares to VMC plus extinguishing $6.1m loan to consolidate the region. The deal values resource at $110/oz.

Below are the project’s resources, note that 800koz gold near surface resource (to 160k) is suitable for free milling, the remaining 2.2moz gold are sulphide associated and the primary ore is partially to totally refractory.

OTHER ASSETS

Mt Fisher Nickel and Gold Project (Rox 100%) & Mt Eureka JV(Rox 75%)

The project includes a Gold Mineral Resource of 3.5Mt @ 1.65 g/t Au for 187,000 ounces of gold.

SUMMARY

The company could further consolidate the region by acquiring AME.