There are no prospector royalties in the OGY joint venture (Rox 70% Venus 30%).
The project is not primarily mining remnants
The operation was closed in 1997 when the gold price was approximately $400 per ounce with the last parcel of ore mined underground at 14.6 g/t Au grade.
The project-wide resource currently stands at 27.9Mt at 3.57g/t Au for 3.2Moz Au contained gold. That's a big remnant.
I was talking to Jeremy Peters (renowned mining engineer) the other night and he said that the ideal mining solution for Youanmi is to have a big mill and process a range of grades instead of the current patchy approach (mine a bit here and then more over there etc) targeting high grade ore,
All well and good but Capex for that large mill would be multiples of the Scoping Study capex and in the current environment Capex must be low.
The challenge for Rox is to identify high grade ore that can be processed with a low Capex operation,
As shown below their feed is mostly 5.1 g/t.
Midway is just one of the deposits that will contribute the high grade gold and which have been drilled since January. More results soon.
My Opinion
(20min delay)