Discussion with MD Alex Passmore

I was privileged to talk with Alex this morning, not a long discussion as he had people to meet, but still very informative as usual. Keep in mind that Alex can’t provide new market sensitive info to individuals.

Re the pending results: The company had been releasing results as they get them and some were high grade and others not. It’s hit and miss in the complex geology of Youanmi and small numbers of results are potentially misleading (witness the over-reaction of the share price to a small number of good and not so good results – my reflection). So the company decided to discontinue this small scale assay release approach. They will now only release representative samples which means a large number (as Fish reported from the AGM).

We discussed the appointment of Dr John Mair as a director and I need to self-correct. Dr Mair (PhD in geology) is an additional exploration specialist not a mine development guru. He is a leader in his field.

We discussed exploration in close proximity to the proven high-grade gold resource at the Youanmi Pit that has the geos excited (see the AGM release).

The historical Pollard Shaft mined in the 1930s is the equivalent to Penny West (now Penny owned by RMS) with 260K 0z au @ 15g/t Au.

Even though this very high-grade deposit is open at depth they stopped mining it and this puzzled Rox geos.

Digging through the historical documents they discovered the reason. When their mining hit the Main Pit Fault there was immediate flooding. With the price of gold low and mining tech primitive they gave up. But the presence of the Pit Fault is very positive because faults running off the Youanmi Shear are the pathway for mineralised fluid (ie gold). This proven resource is now firmly back on the agenda and will require dewatering of the main pit. Dewatering will take 3 months.

The timeline is as follows:

Drilling and reporting representative results (ie a lot of them).

Resource estimate JORC and upgrade from the current 1.9 million oz au.

Starter mine

Dewatering

Exploration and mining the continuation of the 260K oz au resource at depth and this will provide another boost to the JORC.

Meanwhile, the Junction Target below the Pollard Shaft and intersection with Grace at depth is being drilled along with the Link Target (AGM release pg 12).

Both these targets have exceptionally good prospects.

You could talk all day about the compelling gold targets at Youanmi and regional prospects but that's all we had time for.