There are some misinterpretations of the Youami projects.(1) the...

There are some misinterpretations of the Youami projects.

(1) the JVs with Venus

RXL is currently funding VMC’s 30% cost in the OYG JV up until a Decision to Mine is made. VMC must then fund their 30% share going forward including development capex. The 30% receivable accrued up until a decision to mine is made is then repayable from future gold or asset sales.Re: Venus and Youanmi JV’s, VMC and RXL each fund their 50% share.

(2) Refractory ore

Rox is often dogged by refractory gold claims But the reality is:
Youanmi has 3.2Moz at 3.57 g/t Au
Of that, Rox has 1m oz au near surface gold which is 100% oxide and free milling
Grace is one example, currently 30,000 ozs indicated (and soon measured) with more than twice this inferred.
Most of the inferred will be converted to indicted and measured, a restraint being that Grace runs under the old plant and to the North.
Grace is also open at depth.
Cannacords put a $750 oz Au AISC on Grace, probably $1000 oz Au now.
But a conservative 50,000 oz Au generates a cash flow of more than $60m and that's just Grace, there are multiple pits that will be mined concurrently.
Metallurgical testwork shows Near Surface Ore has a +92% recoverability rate from simple CIL.
Rox also has 2.2m oz Au @ 6.9 g/t in the Deeps
The average gold extraction from Deeps underground ore is 92%
Fine gold associated with Pyrite (75%); and gold associated with Arsenopyrite (25%) is easily floatable in a simple proven process flow circuit. Concentrate cleaned to make an easily marketable low As saleable concentrate.
Because of the low level of impurities in the Deeps ore the concentrates will achieve very high metallurgical recoveries, – in the order of 95% gold content.
The cash flow from the Near Surface ore concurrently mined with the Deeps will be in the order of $100m PA with a mine life of 20 years imo.
The upcoming Scoping study this quarter will provide detailed financials.
With a market valuation of just $46m Rox is a compelling buy imo.