Scoping Study in Q3

Rox has been providing us with Scoping Study considerations and updates for some time in announcements.
It is now possible to estimate with some degree of accuracy the key metrics.
Rox is planning for an initial 0.9 mtpa industry standard carbon-in leach (CIL) circuit plant.
That mill can process 450t per day = 164,250t PA.
Rox may start with the Grace deposit because it's high grade and oxide free milling high recovery characteristics although Grace is not at all the only feed for the mine restart.
Grace is 5.65 g/t Au
Gold produced in full year 1 should be around 33,000 ozs..
Grace is low AISC at around $1000 oz Au so the AISC margin is around $1,500 oz Au.
In the first full year of operation Rox could generate close to $50m in free cash flow.
Rox will get all of that as Venus will be repaying its debt from its share of the profits.
So in year 1 of full production Rox will have an income greater than its current market valuation.
Capex is less certain due to the likely use of parts of the existing plant and soaring inflation. Rox want to mine the near surface concurrently with the Deeps so perhaps stage 1 of the restart will drain the main pit, partially rehabilitate the existing decline to 100m and build a new decline down to the Link deposit. But if Rox is going for a bare bones lowest possible Capex restart below is my estimate.



That is an exceptionally low Capex made possible by the existing infrastructure.such as housing/ airstrip/ tailings facility and gold room etc.
We will soon the real numbers in the Scoping Study.