Rox has been marked down after the Paddy’s Lode drilling announcement. Paddy’s is a new development that cannot use the existing mine UG infrastructure so will have a high capital cost to mine.
Along with a lot of Rox’s MRE, (16.2Mt at 4.4g/t for 2.3Moz of gold), whether it makes it into the mining plan in the upcoming DFS will depend on the price of gold,
The next drilling results are very different to Paddy's exploration drilling.
The focus is extensions of mined 11g/t resources from Youanmi Main, 10 g/t from United North and 15g/t from Pollard.
100% of newly indicated gold anywhere near those grades will have a low Capex and be added to the mining plan in the DFS.
This will derisk the final stage of the project before mine construction.
There is also the chance of a major discovery between Paddy’s and Pollard.
Ravensgate’s authoritative 2006 independent report on Youanmi expressed surprise that this highly prospective corridor had not been drilled deeply.
It is the only major unexplored zone left at Youanmi. The other was where the Penny Gold Mine was discovered.
Work will be going on behind the scenes to model the new results.
We may get updated resource estimates to show how Rox is closing in on its production target.
We could also get a timetable for the DFS that will likely surprise investors to see how much progress has been made behind the scenes.
CEO, Phillip Wilding, starts next week on the 15th, and what better way to introduce himself than by announcing excellent drilling results and rapid progress towards the DFS.
(20min delay)