Rox: a decade of profits over $100m PA

The current resource at Youanmi is 1.2Moz @ 3g/t Au and comprises 532koz @ 1.7g/t Au of near surface free-milling resources, and 658koz @ 8.5g/t Au

Canaccord Genuity (Australia) Ltd cite a figure of 300K Oz au high grade for the additional Grace and near mine resources (JORC before June).

In addition, Link and Junction high grade targets (drilling from Feb) have attracted a new allocation in a massive $5.184m RC and DD drilling campaign funded by the renowned Hawkes Point in their cornerstone investment in Rox (their 3^rd in Australia).

Link and Junction will grow the JORC of high-grade au to more than 400K oz au imo.

Canaccord’s restart option 1 has Rox producing ~80kozpa for three years. That will soon be ~80kozpa for four years imo earning Rox around $130m profit PA for 4 years (watch for a Venus buy out) totalling $520m.

For a Capex of $120m there is a 1.2Mtpa opportunity, processing ~3g/t Au free- milling ore to produce ~110kozpa for 7 years. Rox will be able to fund this without any credit raising or share dilution.

Canaccord provides to a further 2Mtpa plant option based on a 3Moz resource producing ~160kozpa of gold in concentrate (ie refractory gold not oxide) for eight years.

Rox has the Youanmi Deeps underground mineral resource to JORC 2012-compliant standards totalling 2.4 million tonnes grading 8.5g/t for 658,000 gold ounces and there is the Pollard Shaft high grade extension. But here is a suggestion here that the largely unexplored depths of Younami could host a massive 3 million gold ounces.

This is the only component of the Younanmi Mine restart that is gold price sensitive due to the higher AISC. But on current gold prices the profit is about $110m PA after concentrate to gold processing costs, for 8 years.

A decade of profits over $100m PA is the future.

Current market valuation of Rox $80m

Rox has potential to be a $500m+ market cap company within 2 years imo.