Rox has a lot of cash, around $10m but relative to its huge exploration program it will not last long.
Rox has by far the biggest exploration program of any junior with a market cap under $100m.
Q3 spend was $1.4m a month and will increase to around $2m a month for the remainder of Q4 and Q1 in 2022.
Rox is drilling the 3 Younami blocks, Link, Main and Junction. Simultaneously Rox is funding studies that will contribute to its DRF prior to restarting the mine.
The company is also readying for more regional drilling in the highly prospective ground between the Penny Project (RNS) and the Youanmi Mine.
There is a good chance here of finding a third Penny deposit (300K oz au high grade au) and RC or DD drilling will likely commence very soon.,
Concurrently Rox has now expanded its focus on the huge Mt Fisher/Mr Eureka Project, the least explored greenstone belt in the prolific Yilgarn Craton,
Geophysical review and geologic interpretation of Mt Fisher to be undertaken by Terra Resources (IN PROGRESS) · – Regional scale review on Mt Fisher – Mt Eureka greenstone belt to be undertaken by Dr Dennis Gee (IN PROGRESS) · – 4,000m RC program to test priority drill ready gold targets (TO COMMENCE IN NOVEMBER) · – Project wide high resolution (50m spaced) aeromagnetic surveying (TO COMMENCE IN NOVEMBER) ·
AC drilling by Rox identified strong VMS pathfinder multi- elements at Red Bluff (Cu, Zn, Sn and Tl) with further RC drilling in train.
Mt Fisher Gold has been identified as highly prospective to multiply its existing JORC of 1.0Mt @ 2.7 g/t Au for 89,000 ounces of gold. Drilling is set to commence within weeks.
The unprecedented $2m a month exploration spend will see Rox in need of more funds by the end of Q1 next year. In response, Rox is seeking to increase the number of shares it can issue without specific shareholder approval.
IMO Hawke's Point will increase their stake in Rox to 20-30% of the company in Q1 2022 or another insto will buy in.
But almost certainly it will be HP.
Around $15m of additional revenue will then be available to continue the exploration spend.
Rox may well consider it has too many projects on the boil and will need to concentrate on its gold resources at Youanmi and Mt Fisher (and possibly at Mt Eureka).
It has already spun off its nickel with a very successful IPO.
Long term holders of RXL will recall the shell company
Helios waiting in the wings.
Helios is another IPO in the making depending on exploration results imo..
(20min delay)