We are now very close to seeing the Mineral Resource Estimate Update.This is a key market-sensitive metric that will inform the DFS due this year.
Above is the current MRE.
In the PFS, assuming a gold price of $3,200, only 546koz @ 4.4g/t made it into the Reserve.
Rox had a huge MRE in PFS but a lot of it wasn’t profitable to mine.
The PFS disappointed the market.
Much has changed”
The gold price has soared to over $5,000 oz.
Under its new leadership, and with backing from Hawke's Point. Rox has been targeting gold that is profitable to mine.
Examples are Prospect, Youanmi North and United North.
These are close to existing underground infrastructure and high-grade.
The AISC on these areas will be low, well under $2,000 oz, making for an impressive AISC margin and free cash flow.
While I’m not expecting a huge increase in the global MRE, the gold in the mining plan will increase significantly.
In the DFS later this year (Rox will keep drilling after the MRE), gold in the mining plan should be at least 1m ozs (and a lot more if Pollard , Penny South or Currans deliver).
It will be interesting to see how much shallow gold Rox can add to the open pit resource, standing at 570,000 ozs.
The Interceptor discovery will certainly add to that.
The price of gold has made low-grade ore (under 1 g/t) and deposits with high strip ratios (like Grace) profitable to mine.
So we are likely to see a lot of shallow gold in the MRE now included in the Mining plan.
(20min delay)