The 35K metre drilling campaign is the biggest since Rox acquired the project.Ex-CEOs Passmore and Ryan predicted another major discovery to rival the Penny Gold project.
But they lacked the funds to find it.
Rox now has the money and ta thorough understanding of the Youanmi Gold geology and the top geos.
A new discovery is on the cards, and it would instantly turn Rox into a $300m+ value company.
A strong possibility is the undrilled corridor between Paddy’s and Pollard.
The timelines in this presentation are conservative and will be dramatically improved imo.
For example, if Rox can find more oxide gold at the Interceptor Prospect and Currans a mine restart based on oxide gold shallow pits could happen much quicker and with lower capex.
Mr Metallurgy (Nathan Stoitis) will likely lift the gold recovery in the PFS and that will contribute to an even higher free cash flow
Under CEO Phil Wilding, pit design expert direction, early mining of shallow deposits is in the plan.
This serves multiple purposes –
To establish drilling platforms underground to enable faster and lower-cost drilling for the first 2 years or so of underground production
To carry out deeper extensional drilling from underground.
That is, of course much cheaper.
The other advantage is that it allows Rox to commence dewatering the UG workings and start to set up the permanent pump stations.
Early access also builds a stockpile for plant commissioning (Q1/Q2 2027, but probably earlier).
It reduces the variability of feed to the mill when ramping up production.
Most importantly, the early mining addresses a downside in the PFS, low production in year 1.
Rox will be producing much more gold more quickly.
The company will generate a higher cash flow right from the start of its mining operation.
That has a positive impact when it comes to raising cash to build the mine because it reduces the Capex repayment time.
Canaccord research should be updated soon.
The price target will likely remain unchanged at 55 cps (due to dilution), but the risk will be lowered.
@ Punter 45 substantial holders potentially block each other. ensuring that there can’t be a successful lowball TO.
Rox will get into production and follow Capricorn and Ora Banda as Hawke's Point's third Australian success story.
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