Like all Rox holders I want the company to get into production...

Like all Rox holders I want the company to get into production ASAP and I’m keen to know their progress towards that goal. The last update of the Youanmi mineral resource estimate MRE was back in April 2022. Since then, Rox has drilled to convert inferred to indicated gold (eg at Link) and to find new gold (eg Currans, near mine targets and Paddy’s Lode) so there is now more dark blue indicated ozs than shown on the chart below.

Even so, the shortfall of indicated ozs at a production of 90 koz (Rox’s target) seems challenging in the short to medium term. The 2022 Scoping Study target production at 72 koz also requires more indicated ozs. But Rox could start smaller and keep exploring and upscaling while in production.

What is the minimum production of annual payable metal at the Scoping Study AISC that is fundable?

50Koz PA does not produce a large enough free cash to attract the pre-production capital. Also, the payback period is too long.

Imo the most practical near term start up production output is around 60K gold ozs per annum. With a modest AISC and margin boosted by the high price of gold there should be enough free cash flow to attract investors (perhaps Hawke’s Point) and limit the pay-back period to the standard 3 years. Profits would then drive further exploration and upscaling, thereby eliminating or reducing dilution of the share registry.

When an updated Mineral Resource Estimate and the Pre-Feasibility Study are announced next year we will know exactly how much progress Rox has made to restarting gold production at Youanmi. 2024 should be a big year for Rox.