Cash and equivalents of $6.814m at the end of June positions Rox for its exploration campaign, the first stage of which is a modest 5,000 m of DD and RC drilling.
The targets are a mix of infill drilling for the DFS but also exploration to unlock the near-term value of Youanmi.
The focus of the high-probability drilling is Link, which is emerging as a parallel Lode to the main lode and is just as fertile. The deeper Link is drilled, the higher the grades, eg 24.43m@ 12.79g/t Au at 369m, 6m@ 25g/t from 373m and the deeper the wider the lode. Rox could get some exceptional hits from Link soon. Link alone could provide all the gold needed to make the PFS model 100% indicated and could also increase the gold in the mine plan to make a 10-year LOM in the DFS. Rox's aim is a ten-year life of mine producing at least 100K oz au each year. At the PFS ASIC and the likely higher price of gold, say $3,300 oz (today’s POG = $3.682 oz Au). Youanmi would deliver a free cash flow of over $162m PA and $1.6B over 10 years. That is an outstanding NPV for the current value of Rox.
The exploration drilling could send the share price skyward in the near term. Paddy’s Lode is finally being revisited as part of the 300m mostly unexplored corridor between the Youanmi mine and Pollard. Holders will recall the spectacular hit at Paddy’s Lode 28m @ 34.81g/t. and follow-up hits that were good though revealed a shorter-than-expected strike length, but a continuation of width of at least 5 m. With a lode width that size the strike length does not have to be big to generate a lot of gold ounces. The Rox share price spiked to over 40 cps on the Paddy’s discovery and with Paddy’s and other near-mine areas being drilled we could see some major movement in the current SP.
Is Rob expecting a TO? In the interview Kenny Powers posted I got that impression. M@A activity in the gold sector is reaching a fever pitch and as Rob says there are not many emerging gold miners capable of producing 100K+ oz Au PA .
Rox is valued at just $61m.
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