The inferred resource is located deeper and deeper in the project the drilling will be deep, dense and expensive.
Looks at the diagram below showing the inferred resource. Note the shallow inferred gold lateral to the main pit. That's where Rox will start converting inferred to indicated gold and it will not be expensive..
+ PFS is expensive, will need to engage PFS level consultant scope and the document the project enough to tender into the market for preliminary pricing will cost at least $3-5mil in consultant fees.
Today's Scoping Study is already close to FS level and has been completed in house with independent oversight. Rox are in the unusual position of having expert staff who can undertake JORC compliant studies in house. They will not be spending anything like $3.5 in consultant fees.
RXL will raise $8-10mil or risk raising less and less if the SP continues to fall
RXL will advance step by step towards derisking Youanmi and will not need to raise anything like $8-10mil this year. As they incrementally derisk and approach DFS level studies the project will become compelling for instos.
RXL Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
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