Rox have the results and they are probably dusters but who...

Rox have the results and they are probably dusters but who knows? The last Link results were very late but positive.

But the main game is the updated MRE that Ryan told us last year was almost complete and we will be pleased with it. The stakes are high.

After 4 long and painful years with many false dawns, and blunders along the way with holders taking losses year after year, has Rox finally identified enough indicated gold to restart the Youanmi mine?

Ryan has clearly said that we can expect around 250,000 more gold ozs which would be a game changer. The market yawned. Look at the miserable share price.

But I’m a contrarian investor believing that this time the market is wrong and taking Ryan at his word that they will deliver. If the AISC on a reserve of that additional gold is a whopping $2K an ounce with an AISC margin of $1,000 oz, the free cash flow is multiples of the current market valuation of the company over the LOM of course. And that’s just what the additional gold is worth. Ryan says the mine will have a long life and with 3.2m ozs including a very high-grade resource at 6.89g/t that statement is credible.

To make the Scoping Study model work Rox needed to find an additional 210K oz @5 g/t.

I think the grade will be lower but with more ounces than the 210K.

That’s fine, the mill will be upsized to process lower grade ore with a higher output, more like 100K ozs gold PA rather than 71K. A single year of production will produce a free cash flow higher than the current market valuation of Rox, a miserable $66m.

In between the MRE and the Pre-Feasibility Study due in June Rox will be redrilling Paddys, Midway and Currans (+ a few wildcats). They have probably already started drilling – why would they bother to tell us?

As disappointing as Paddy’s has been, after being so overhyped, even if it isn’t open at depth, 100-150m of strike, with a width of 6m hosting high grade ore in a cheap to mine location will add significant gold to the resource and boost the PFS metrics. And who knows? Perhaps Paddy’s is open at depth and as Ryan insists, there is another Youanmi or Penny along the 70 km of shear zone?

But right now in Q1, Rox, needs to deliver the pleasing MRE Ryan promised that will fuel positive feasibility studies this year to support the long awaited Youanmi restart.