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- Minerals explorer Rox Resources (RXL) has made exploration progress across its portfolio of gold and nickel projects
- The company’s holdings at the Youanmi project in WA host several prospects at varying stages of exploration and development
- Metallurgical testwork indicates most mineralisation from across the project lends itself to simple cyanide extraction methods
- Aircore, reverse circulation and diamond drilling are continuing to turn up positive results as the company gains understanding of the project’s geology
- The company’s holdings at the Youanmi project in WA host a number of prospects at varying stages of exploration and development
- The company believes too little value is being placed on its nickel assets so it’s “investigating various opportunities to unlock [their] underlying value.”
- Rox has $8.04 million in the bank, giving the company enough cash to continue at current spending levels for almost another three quarters
- Rox Resources closed Friday’s session 3.57 in the red at 5.4 cents
Rox Resources (RXL) has made exploration progress across its wide portfolio of projects.
Exploration highlights
The company’s holdings at the Youanmi project in WA host several prospects at varying stages of exploration and development.
The project’s global indicated and inferred mineral resource estimate sits just under 1.2 million ounces of contained gold, including potential open pit and underground operations.
The project contains a patchwork of tenements on different joint venture (JV) arrangements.
Rox holds a 70 per cent operating stake of the OYG joint venture with Venus Metals (ASX:VMC). Rox is also earning a 45 to 50 per cent share in three other Venus holdings (the Regional Youanmi JVs), for either all mineral rights, or just gold rights.
The Youanmi project contains a number of different mineralisation styles across varied geological settings.
The company undertook drilling and metallurgical work through the September quarter to get a better grasp of what lies in the ground and how best to exploit it.
So far, metallurgical recoveries indicate gold mineralisation across Youanmi, and especially at the Grace prospect, lends itself to simple cyanide extraction methods.
Various programs of aircore, reverse circulation and diamond drilling have either yielded high-grade results or hinted at possibly prospective zones.
The company is still awaiting a raft of results from the drilling programs, and some further drilling will continue through the current quarter.
Drilling at the Regional JVs has also turned up a number of high-grade results, which will be pursued through the December quarter.
Nickel assets
The Mt Fisher Nickel and Gold Project (100 per cent Rox) & Mt Eureka JV (Rox earning up to 75 per cent) are mostly still at the early stages of exploration.
The Fisher East Nickel Project has a resource estimate of 78,000 tonnes of contained nickel.
So far, the company believes too little value is being placed on the nickel assets within the current corporate structure. Rox says it is “investigating various opportunities to unlock the underlying value of these assets.”
Financials
As of the end of September, Rox had $8.04 million in the bank, giving the company enough cash to continue at current spending levels for almost another three quarters.
A payment of $3.75 million is due from Teck Australia in February 2023, bringing the company’s cash and receivables to $11.79 million.
While most of Rox’s assets are still a long way from potential returns, it seems there’s great potential in some of the holdings.
It’s been a busy and productive period for the explorer, and it looks like that trend will continue.
Rox Resources closed Friday’s session 3.57 in the red at 5.4 cents.
