Younami has a high grade shallow resource of high recovery oxide gold to about 50 m. Then there is a transitional zone and this is also high grade oxide gold.Below 80m there is a super grade primary resource with gold in granite that Rox has only recently discovered and is now drilling.
The shallow Grace resource is an exceptional find with grades up to591.89g/t from just 3m downhole (not a misprint) the highest grade ever found in WA. The recovery rate for Grace oxide gold is as good as it gets at 97%.
Here are some shallow and transitional zone results
.RXRC064 –12m @ 8.5 g/t Aufrom 44m
RXRC063 –12m @ 12.7 g/t Aufrom 80m
Recently Rox announced that step out (i.e. down plunge) results show continuation of anotherhigh-grade zone beneath the shallow discovery zone…These new intercepts opened up significant target zones for gold mineralisation at Grace along strike and down-dip from the initial discovery zone.
Rox has only just started drilling the deeper Grace mineralisation. The first results were as follows:
RXRC287:25m @ 34.79g/t Aufrom 143m (Grace)oIncluding: 6m @ 140.7g/t Aufrom 150moDeepest intercept to date extending mineralisation both along strike, and down-dip•RXRC291: Visible gold in RC chips approximately 20m down dip from RXRC287 intersection. Assays Pending.
These are super grades.
Alex has thrown a second rig at this deeper super grade resource.
Now the company is revisiting other shallow high grade finds to test for the deeper super grade mineralisation.
Priority targets after Grace are Youanmi South and the Plant Zone. Rox has announced that deeper drilling is required in this zone to test transitional and primary ore ie test for super grade gold.
The near term plan is to mine the shallow Grace low AISC resource (200K- 400K oz au?) and the very shallow Plant Zone (mix with Grace ore?) to provide a cash flow. The profit generated from those zones ($200m - $300m+?) will be used to establish a modular (Gecko?) plant that will process the deeper super grade ore currently being drilled. Then comes the high grade 660K oz au Younami Deeps resource. If that is 100% refractory with a 75% recoverythat is equivalent to half a million oxide gold ozs. Alex has indicated thathe won’t be using a concentrate process for the refractory ore (subtract $30m from the CAPEX).
What’s Rox worth? RMS scooped the 300k oz au Penny West North deposit for $230m.
The Younami Deeps high grade portal alone has 500K oz oxide equivalent gold
Grace shallow has at least 200K oz au
The super grade resources being drilled now have cannot be quantified yet but are likely to be huge and the phenomenal grade will make them highly profitable,
The market cap of Rox is just $170m. Based on current gold resources it should be at least $340m (share price of 17 cents) with potential to double that again.
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