Previous miners at Youanmi had a model with the Deeps as a high...

Previous miners at Youanmi had a model with the Deeps as a high grade lode and a then series of shallow pits such as Kathleen and Hill End.

Rox has shown that there is actually one gold system and has called everything you can see in the model below 160m the Deeps.

Drilling this year will grow the Near Surface Resource (to 160m) and add to the Deeps ozs plus convert inferred ozs to indicated ones. That conversion is important because Rox is aiming at defining a mineral reserve which is only measured and indicated ozs with inferred ozs excluded.

The diagram below shows the 2022 targets and the known Au grades.

Target 1 on the left is largely undrilled so no grades are shown but this target is predicted to add substantial ozs to the Near Surface Resource as well as the Deeps.

The Deeps has now been modelled to 1060m with the last section at the very high grade 15g/t Au.

That’s higher grade than RMS’s Penny project and one of the highest grades of any gold mine in Australia.

The Deeps is world class and while some of it is mildly refractory Rox has achieved very high gold recovery rates using the Albion process.

Note that the bottom of the Deeps has not been reached and all indications are that it extends well below 1000m and widens even further.

Rox won’t be drilling there in Q1 and Q2 because slanted diamond drill holes at around 1300 m would be very expensive but sooner or later Rox will define the Deeps to at least 1200m.

Mining at that depth will be very profitable given the high grade. 2000m+ would also be viable if the Deeps extends that far down.

This year Rox will deliver an upgraded JORC with a much bigger Near Surface Resource (imo) and a bigger Deeps resource with less inferred and more indicated gold ozs.

We will also see a Scoping Study giving us a first look at mining possibilities and profitability.

Imo Rox will start with the high grade shallow resources such as Grace and at the same time renovate the Deeps decline to make a start on UG mining.

Rox will also produce a mining reserve and a DFS based on it.
The DFS will be the real number cruncher showing exactly how profitable the Youanmi Mine restart will be.

That’s the key to financing the Capex which is where corner stone investor Hawke’s Point will prove their worth.
I sense a high degree of confidence at Rox that they will move to production quickly and ultimately join the ranks of Ramelius and Capricorn.