Our bull cases hypothesise how a 200koz increase in reserves can push LOM average production to 130kozpa.
RXL is well funded with ~$28.4m in cash post its recent capital raising, allowing the focus to be on the upcoming drill program, and progression of the DFS and metallurgical work. Backed by a team of mine builders, we initiate on Rox Resources with a Speculative Buy Recommendation and a Price Target of $0.27/sh,
Management: Phill Wilding (CEO) was most recently COO at Westgold Resources (ASX: WGX), contributing to the companies growth from a $300m junior to a $3b mid-cap and Top 5 Australian Gold producer. Nathan Stoitis, highly regarded and colloquially known as 'The Metallurgy Guy' in industry circles, joins the board, endorsing and de- risking the less familiar processing route.
Granted mining permits: Youanmi sits on 11, 100% RXL owned tenements with Granted ML's. In a landscape where mining permits are tedious and hard to get - we believe those companies on granted mining permits should carry a premium (which only gets higher as companies put their feet on assets like DEG's Hemi and SPR's Dalgaranga).
There are no native title claims or flora, fauna or heritage concerns on the mining permits, of which all have been granted.
Having engaged with the Company on the issue, we have an appropriate level of confidence on the metallurgical work to date noting that further test work and process design is now underway. Wiluna Gold mines are largely responsible for the bad reputation of refractory gold ores. But is it justified? We believe there are other reasons for the companies failure, namely COVID and other technical and operational issues - NOT the sulphide ores (which were not even being mined or processed at the time).
https://roxresources.com.au/wp-content/uploads/2024/12/RXL-Initiating-on-RXL-High-Grade-WA-Gold-120924.pdf
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