Rox is rapidly de-risking the Youanmi Gold Project project.A Reserve of around 1m ozs of high-grade gold is likely in the DFS mining plan.
But there is a good chance of much more.
Rox had a PFS maiden high-grade Reserve of 540koz at 4.4g/t calculated at $2,600 oz.
The cut-off grades for this reserve were calculated on a ‘margin optimised’ basis that provides the greatest margin (and ultimately profit).
The price of gold is a major factor in the calculation.
When the price of gold is high, a lower cut-off grade is possible, meaning lower-grade ore can be processed to make a profit.
The optimisation method of calculating cut-off grades requires numerous inputs that I cannot access at 2025 costs.
Rox themselves outsources the calculation.
A PFS today should have an additional 150 Koz in the Reserve.
That brings the Reserve to around 690 Koz.
Rox is now growing the resource with a massive drilling campaign 5 – 6 rigs.
The midpoint exploration target is 1.5m oz au.
A conservative estimate of new gold from the drilling campaign is 300 koz, with 250 Koz going into the Reserve.
That brings the Reserve to 940Koz high-grade gold in the DFS mining plan.
That’s enough to turn Rox into a money-printing machine in 2027.
But what if there is a discovery, e.g. another Youanmi lode in the deep Paddy’s/ Pollard corridor?
Wilding is optimistic about this and he is not another Alex Passmore.
Another Youanmi lode would be transformational.
Youanmi produced UG 404,000 ozs @ 11,44 g/t plus.
That’s bigger than Penny Gold, a world-class gold deposit.
After discovery, the Reserve would be around 1.34m koz.
Rox would install a large mill and produce 150 koz – 200 koz PA.
The AISC margin would be $2,000 oz au.+
Meanwhile, the price of gold is expected to exceed A4,000 oz this year.
According to Peter Schiff, chief market strategist at Euro Pacific Asset Management, gold prices are not dropping below US$2,000 an ounce again in our lifetime following the metal's performance this year.
@ Antietam: yes we are in the hands of big money holders but right now our interests coincide which is a nice change for retail holders. They are loaded up and the share price rise helps head off a low ball TO. Hawke’s Point will want a bigger slice of the company and will partly achieve that by buying their 25 cent options before they expire in November.
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