Rox has apparently settled on a 480 Ktpa mill so it can achieve a very low Capex restart.
By comparison DEG will have a 10 Mtpa mill with a Capex approaching $1B
Rox will not have to shop around for hundreds of millions in finance.
It will be much less and there is possibility that major shareholder Hawk's Point part fund Capex in exchange for a greater share of the company.
But with such a low processing rate through the mill how can it be profitable?
A 480 Ktpa mill needs high grade ore to be profitable.
Rox has abundant very high grade in the Deeps but mining it entails draining the main pit and rehabilitating the old decline.
That is not a near term restart.
IMO Link is the most likely high grade resource that Rox can mine cheaply (see below).
Link is high grade, free milling oxide gold with a high recovery and shallow enough to be accessed cheaply.
This diagram is not at all up to date, Rox has been drilling at Link for months and have probably been infill and extension drilling.
They may have also been calculating a Link JORC solidly based on indicated and measured gold ozs.
If so we are likely to see a Scoping Study that has a low Capex and good profitability mainly based on Link feed and perhaps other small high grade resources..
Not long to wait now, the imminent resource update may identify the restart feed before the Scoping Study.
September is a big month for Rox with a Younami resource update, Scoping Study, Grace update and drilling results from Fisher Gold and the regional exploration.
My opinion DYOR
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