MarketValuation of MAU is $248.3
mRXLis valued at $50.09m
Development stage
MAU PFS completed
RXL PFS in June (risk).
Resources
MAU has 773,700 oz au @ 1.78g/t Au 77% indicated and 23% inferred (risk if the inferred gold cannot be converted to indicated).
RXL has 1.1m ozs au @ 6.1g/t 100% indicated. Zero inferred.
MAU Reserve not declared, company says they are not in a position to declare a Reserve) but at best the Reserve could be 595,749 oz Au indicated (risk of smaller reserve).
RXL likely Reserve at PFS 1m oz Au (small risk mitigated by very high grade)
MAU Moderate capacity for further growth in the resource but infill drilling to convert the 23% inferred to indicated needed (risk).
RXL Total resource 2.4m oz Au @ 4.2 g/t so strong possibility of growth in the Reserve
Mining and gold
MAU open cut mining for oxide gold
RXL underground mining for refractory (processing to bullion or concentrate. (risk until we get the metallurgy report).
MAU PFS states producing 87,000 oz/year over 9 years
RXL PFS likely 100,000 oz/year over 10 years (risk)
MAU AISC A$1,434/oz (risk mitigated by high price of gold)
RXL A$1,700/oz? (risk mitigated by high price of gold)
MAU development Capital A$93.4m
RXL A$ 130m? (risk).
MAU Assumed price of gold $2,800 oz Au in the PFS (minor risk if POG collapses)
RXL In June PFS $2,900 oz Au? (minor risk if POG collapses)
MAU is further down the development path having produced a PFS and the market likes the oxide gold and open cut mining. But Rox has much higher grade ore and it’s all indicated by the JORC code. Rox is seen as higher risk until the PFS but has the potential to be a bigger mine with a longer life of mine. Rox is currently valued at only about 1/5 the market valuation of MAU? If Rox can derisk and catch up to MAU in market valuation the share price should be at least 70 cents.
The Mt Magnet Hub
If all goes to plan Rox will be in production in 2026
Look at the RMS production timeline and AISC for its Mt Magnet Hub (below).
From 2026 production slumps and AISC soars.
Youanmi could add at least 100K oz au to the RMS production hub at Mt Magnet.
But can the mill at Mt Magnet process refractory ore?
Rox are currently working on a process based on fine grinding and a standard CIL mill so we will find out in June with the PFS.
Or RMS could add a circuit to their CIL plant to process refractory ore.
Will Rox own the Youanmi Gold project in 2026?
IMO unlikely.!
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