ROX RESOURCES LIMITED (ASX:RXL) - Ann: Youanmi Gold Project - Positive Pre-Feasibility Study, 74931815, page-23 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by CashedUpBogun: ↑

interesting with the processing route if they had gone a simple gold conc then the state royalty would be 5%

see below:
The ad valorem or value-based rate of royalty, which applies under the Mining Regulations 1981, is based on the following principles:
bulk material (subject to limited treatment) – 7.5 per cent of the royalty value
concentrate material (subject to substantial enrichment through a concentration plant) – 5.0 per cent of the royalty value
metal – 2.5 per cent of the royalty value.

and everyone gets doing a con. its simple, other mines like deflector do it (but they have cu + ag credits).
but you have to truck it, and the value of gold in conc received is something in the order of 80-85% payable (it may be more but thats range)

not doing this implies Youanmi cannot make a profit doing this. The extra 1% VNC royalty kicks it up to 6%. ouch.
so management commit to a process virtually no mines in Australia, certainly not in WA use. Ultrafine grind. Thats got to be energy intensive, which means scale of economies to make it worthwhile.

so will converting more inferred actually make a difference? as BD said thats slow and expensive from surface - not so much from UG.

I did say if RMS got desperate maybe they'd look at this. Well they're not that desperate and definitely not stupid. If running a conc doesnt work, the project effectively isn't going to happen.

unless gold goes to $5,000 then all bets are off and m0ngy gets to say i told you so. Interesting to hear others thoughts which are not cut and paste from the report.

until then m0ngy will be making even more fake accounts, congratulating himself to himself on how he's smarter than the market. Echo chamber or dutch oven?

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Gold con would be circa 31g/t, low grade and not marketable. Even if you could get a higher-grade con you have the issue of where to send it. Without any domestic outlets you're left with international solutions, and all the sovereign risk that brings.

So RXL are left with trying to build a refractory gold mine with their own sulphide treatment solution, in this case UFG and Albion.

The numbers are OK. On face value it appears to not lose money, but with a lot of money to be spent over a very long time you have to seriously think about alternative options for your investment dollars. It's probably 6+ years to recoup an investment, and even then you're not seeing returns that reflect the risk. IRR of 33% is simply too low for such a high-risk project.

Not sure what Canaccord are thinking with a 51cps price target. Appears to be based solely on EV/oz and certainly doesn't reflect the additional investment required to bring these oz to market.

Unfortunately, IMO Youanmi is destined to have to wait for someone else to crack the Australian refractory gold market. Maybe that's what Canaccord are pricing in?

A hold at current pricing on speculation of some sort of outcome at Wiluna.