Ann: Near Mine Drilling Delivers High-Grade Results, Youanmi, page-10

Another significant result for Rox but I doubt the company was surprised that the market yawned.

Behind the scenes work is progressing on the results that really will lift the SP.

It’s not the longer term Deeps development that has some way to go with a lot more drilling to convert inferred to indicated ozs and then the Capex requirement.

The market wants a Youanmi restart with a near term timeline and nothing less will attract sustained investor interest.

That restart depends on the Near Surface Resources, about which Rox is being very quiet. My estimate is between 1 and 1.5 oz au@ 3g/t to be announced before June.

A Scoping Study is underway with two scenarios being explored.

1 Open pits. This is how Rox thought the Near Mine Resources would be mined, down to a depth of around 150m.

Looking at the diagram below all the resources above the red line are open pitable.

This is oxide free milling gold with a very high recovery and would have an AISC of under $1,000 oz au leaving an ASIC margin of around $AU 1,600 at today’s POG. That’s a billion dollar+ resource.

2 Recently another idea has emerged with the focus on near Younami mine resources.

That plan is to partially dewater the main pit (3months $500,000), rehabilitate the decline down to about 200m and extend it laterally into high grade ore targets.

Looking at the diagram this could be very promising. Rehab the old decline and extending it would be cheaper than digging a giant pit and ultimately the entire decline will need to be dewatered and renovated to mine the high grade Deeps ore.

A combination of open pits and decline mining is also possible, eg Grace and the Plant Zone would lend themselves to open pit mining, Link to lateral mining from the decline.
The forthcoming Scoping Study will give us a detailed mining plan and imo it will focus on near term production from the shallow resource.