It isn’t surprising that RMS is finding high grade gold at depth...

It isn’t surprising that RMS is finding high grade gold at depth but it is interesting that they are choosing this zone to extend the life of the Penny mines. Mineralisation to a depth of 750m was established by Eastmet the company that first mined Penny West. The extraordinary grades are a surprise and are suggestive of Supergene gold enrichment, an oxidation process where gold is mobilised by groundwater from the primary gold lode. The Penny’s have the two conditions needed for supergene enrichment, sulphide ore and permeability through the gravel strata to permit percolation of the mineralised solution. Supergene enrichment is of major commercial significance as it can produce spectacular grades of gold.
It is very possible that RMS are exploring a major mine extension even though it is likely to be refractory. The first 75m of Penny West targeted the easy to extract oxide free milling gold. RMS will then extended the pit probably to the limit of the free milling ore that could be processed at Mt Magnet. The new drilling has the potential to greatly increase, even surpass, the high grade gold from the Penny’s. As with any deposit along the Youanmi Shear, including the Younami main lode the deeper gold is refractory but as nearly Rox Resources (RXL) has shown iit is easily liberated using an Albion treatment.

If the deeper resource is going to mined after the oxide gold at the Penny’s is depleted an Albion or Biox circuit could be added to the Checkers Mill or RMS could tap into the growing demand for low arsenic gold concentrate.
Note the low Capex
https://www.investi.com.au/api/announcements/rxl/db1bc3e6-24c.pdf

NI43-101 reports compiled by Ravensgate

(Holden and Hyland, 2004)

Independent Resource Model Repotr on the Youanmi Deeps… for Goldcrest, Ravensgate.

Eastmet Mining Proposal Penny West Geo Docs