The Penny Wests bonanza grade

When Alex went after Younami tenements he secured 50% of the Younami Gold Mine and the right to go to 70% . But he was knocked back on a 70% option for Currans & Pincher, Sovereign and Penny West Deep South. It made sense. Younami had been heavily explored and its big deep high-grade resource was mostly refractory so was thought to have a very low gold recovery rate.

Venus overlooked the possibility of high-grade gold hosted in unexplored granite. They also overlooked the potential recovery rate for the deep refractory ore.

Alex seized the opportunities and the rest is history. Rox now owns 70 % of Grace and the exciting deeper mineralisation beneath it Including first results 140.7g/t Au from 150m and nearby visible gold in RC chips.

There is a lot of gold hosting granite to explore, and a magnetic survey of the shear zone north and south of the Younami mine is now underway.

Historically, the Younami operators added an extra stage to the conventional plant to process the Younami Deep refractory ore. Alex planned to use a concentrator process but with the 76% recovery just announced I doubt he will bother. Younami Deep has half a million gold ozs after being processed conventionally in stage 2 or 3 of Rox’s mining plan. Bulk gold oxide feed from the Plant Zone will likely be mixed with the refractory ore. Rox’s share of the Deep resource is 350,000 ozs.

RMS paid $230m for 300K au down the road at Penny West North.

Venus got the Younami Gold Mine wrong but their assessment of regional projects was correct. The Venus JV (Venus and Rox 50% each) is now drilling them.

The Penny West Deep South target is just 6 kms from the Penny West North now owned by RMS and along strike and just 4 kms from the historical Penny West with its very high grade gold hosted in quartz veins up to an incredible 5 m wide, dwarfing even the Peru Shaft (reef) with bonanza grade in near vertical quartz veins up to 1 m wide.

The nearology and trendology between the 3 Penny Wests is compelling.

Even better, Penny West Deep South has now been found to have numerous high priority targets that lie directly South from the original Penny West gold deposit. The gold is hosted in bedrock mineralisation beneath anomalous shallow gold. Similarly at Penny West North abundant visible gold was found beneath shallow gold by Spectrum at more than 300 m.

A drilling program of 14 RC deep holes at Penny West Deep South is now underway.

But along the Penny West strike there are 6 more PW style mineralisation targets identified by a ground magnetic survey totalling an impressive 232 line Kms

Penny West Deep South and similar targets have the potential to add hundreds of millions to the RXL market cap and double the share price (again).

The market cap of RXL is $160m, much less than the value of just the Younami Deep high grade 350k of gold ozs. Then there is the shallow high grade Grace resource, the deeper bonanza grade Grace mineralisation with visible gold, Sovereign and 6 Penny Wests and much more to come.

What is unique about RXL is that exploration doesn’t just discover results that are more or less similar. The Younami region has a history of hosting Bonanza grade gold. It has 3 different mineralisation types and all of them host extraordinary high grades of gold ranging from right from the surface down to bedrock. Alex has many targets and only needs one hit, one more Penny West or Grace to send the SP ballistic and he may have it already. My conservative estimate is that the RXL market cap and the share price will double between now until Xmas but 25 cps wouldn’t surprise me.