Rox Resources Limited (ASX: RXL), in conjunction with JV partner Venus Metals Corporation Limited (ASX: VMC), has announced a substantial total Mineral Resource increase of 39% for the Youanmi Gold Project, near Mt Magnet, Western Australia.
The project’s total Mineral Resources has increased by 466 koz (39%) to 1,656 koz of contained gold, with Junction and Link mineralisation to be incorporated in later models.
Youanmi Near Surface and Youanmi Deeps Resources Mineral Resource Estimates also realised significant increases with 48,000 metres of combined diamond and RC drilling completed. Results have been incorporated into this estimate.
The Near Surface Resource increased by 50% to 800koz Au in total while Deeps Resource showed a 30% growth to 856koz Au with high grades preserved. Exploration work is ongoing.
The maiden resource at the Grace deposit was defined to contain 109koz of contained gold at 7 g/t Au with upside potential remaining.
Drilling and exploration at Youanmi project
Rox Resources and Venus Metals have focused drilling and exploration work predominantly in the OYG JV area (Rox 70% and Manager, VMC 30%) of the Youanmi Gold Project.
The work has now yielded substantial increases in known and defined tonnages and ounces since acquisition and commencement of drilling in Mid-2019.
Independent consultants used
Independent consultants were used for both the Youanmi Near Surface and Deeps areas. Widenbar Associates completed the Near Surface Resource while CSA Global completed the Youanmi Deeps Resource Estimate. The previous 2018 resource was published by Widenbar.
39% increase in Youanmi MRE
The updated Youanmi Resource now sits at 1,656koz of contained gold, representing an increase of 39% (466 koz) on the previous estimate. This MRE includes maiden resources for Grace and Currans Find deposits. The Grace maiden resource was defined at 109koz of contained gold at 7 g/t Au, with upside potential remaining.
An overall increase of 39% in contained gold was achieved, with a 52% increase in metal in the indicated category, and a 31% increase in the inferred category.
A summary of Youanmi 2021 MRE is shown below. The cut-off grades remained the same as those used in the 2018 estimate (4g/t Au for Deeps and 0.5g/t Au for Near Surface). 1.5 g/t Au was used for Grace.
The Deeps Resource shows impressive growth (+30%) to 856koz Au with high grades preserved (7.9g/t Au resource average). The JV partners reported an increase in Au metal ounces per vertical metre for Youanmi Deeps over key potential mining depths.
Near Surface Resource
Meanwhile, the Near Surface Resource increased by 50% to 800koz Au in total. The Near Surface Resource Estimate is comprised of seven main areas as shown below.
$16 /oz discovery cost
The all in exploration costs for the project since the last published resource indicated a $16 per ounce discovery cost for this addition to the resource. This is well below industry averages.
On the back of this resource upgrade, Rox Resources and Venus Metals have commenced studies into optimal production scenarios at Youanmi. These studies will feed into a detailed feasibility study which is due for completion in the second half of next year. The various studies would include metallurgical test work, development of a geo-metallurgical model, processing plant design, pit optimisation, underground mining optimisation, dewatering and geotechnical studies, waste rock characterisation, and environmental baseline testing.
The partners are also set to undertake an extensive regional exploration program along with a drilling program in the near-mine area.
“The Company is very pleased with both the expansion of the Deeps Resource as well as achieving a considerable increase in inventory to the Near Surface Resource areas”
Managing Director Alex Passmore said: “The release of the updated Youanmi Resource is a milestone for the Company (and the OYG JV) and demonstrates the strong potential to continue to grow high-grade gold resources at the Youanmi deposit. The Company is very pleased with both the expansion of the Deeps Resource as well as achieving a considerable increase in inventory to the Near Surface Resource areas including some spectacular results at Grace which contains 109,000 ounces at an average gold grade of 7 g/t Au at shallow depths. An overall increase in gold resources of 39% is a great result, as is the $16 /oz discovery cost realised to achieve these results.
This resource update also highlights Rox’s low enterprise value per attributable resource ounce which based on the Company’s last reported cash balance (March 2021) and current market capitalisation is calculated to be only $45 per ounce. On the back of the resource upgrade, we will be commencing the Youanmi Mine Feasibility Study. Drilling will continue at Youanmi with a focus on the ongoing conversion of inferred material into indicated categories for both the Deeps and Near Surface Resources and extension of the Youanmi Deeps along strike and down dip. In addition, regional grass roots exploration drilling will continue on our extensive tenement interests with the intent of making new discoveries in the area.”
Images: Rox Resources Limited (ASX: RXL)