Ann: Extensional drilling at Youanmi pursuing significant growth, page-70

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NopeRope

295 Posts.

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22/06/21

22:30

Post #: 54001843
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Originally posted by m0ngy: ↑

Refreshing to read your well researched post.
In Q4 2020 Rox was roundly criticised for alleged poorly disciplined, blind drilling with less than spectacular results.
At the time Alex said that many of the results would contribute to the JORC and with lab delays the alternative to drilling blind was to give up a rig and then get in a long queue to get it back. There was a previous claim that the geos 'knew where the gold was' so they didn't have to wait for lab results That was true of Grace but not Grace north so perhaps they were overconfident. Rox took on board the feedback and the effect on the share price and are no longer drilling blind. That's why they plan drill holes but then revise them as you say by removing some and adding them elsewhere and going to DD for the deeper holes where they also get the benefit of a core. The model is constantly changing as they pursue high grade shoots. Looking at the diagram you posted below the geos have now settled on two deeper high grade shoots running into the main pit fault adjacent to the Younami Deeps. The Deeps already has a JORC at around 660,000 oz au @ 8.5 g/t. That's 2 Penny Projects and likely extends across the fault to the Rox targets.
Agree the additional holes won't contribute to the June JORC which is primarily Grace and near mine. But the current and planned drilling will be significant in the second JORC planned for November. By the way, the JORC is not at all mythical, Rox has been working towards this milestone for a long time and will definitely deliver it very soon.
While not spectacular, they had 2 good hits at Kathleen and I wouldn't call the others dusters, most are shallow and would be oxide high recovery gold that will add to the JORC. They are similar to Plant Zone results.With a high grade resource like Grace they will mix in lower grade ore as a stock feed. Looking at the Stage 2 Canaccords mine restart option they need 3 g/t au so there is plenty of opportunity to mix high grade ore with lower.
A larger (1.5Moz resource) 1.2Mtpa opportunity, processing ~3g/t Au free- milling ore to produce ~110kozpa over seven years.Note the output there, a revenue of over $100m PA,
I do like the new DD at Kathleen and all the DD holes planned following high grade shoots.
Thanks again for your research and comments.

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It is as if this is the type of conversation and interaction this platform was made for as opposed to the endless, mindless sniping that certain posters on both sides of the aisle are engaging in!
RXL Price at posting: 3.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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