Cashed-up Rox increases stake in Youanmi JV, gears up for accelerated exploration
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Special Report: Following a string of high-grade gold hits, Rox has exercised an option to increase its interest in the Youanmi OYG joint venture to 70 per cent.
The company is paying its partner $2m in cash and $1m in Rox shares priced at 2.4c each — the same price as the recently completed share placement — to acquire the extra 20 per cent interest.
The OYG JV is centred around the Youanmi mining centre that produced ~667,000oz of gold at 5.47g/t during three main periods: 1908-1921, 1937-1942, and 1987-1997.
Rox Resources (ASX:RXL) acquired its initial 50 per cent interest in the historic, high grade project in April last year.
Since then, the company has met the $2m exploration spending requirement to exercise the option — money well spent given the results that have been returned to date.
Drilling at the Grace prospect has returned thick, shallow and high grade results of up to 7m at 54.6 grams per tonne (g/t) gold from just 8m, and 4m at 69.5g/t gold.
Rox’s belief that the Grace prospect is a series of north-plunging high-grade stacked-lodes that lie within a broader zone of mineralisation has also received support from recent drilling, which hit a second high-grade zone below the initial discovery.
Grace is located within a north-northwest trending corridor which includes the Airstrip and Youanmi South prospects.
Drilling of nearby regional targets with a similar structural setting has hit a 2m intersection grading 18.96g/t gold from 48m that ends in mineralisation at the Grace North prospect while drilling at the Hill End East and Plant Zone West targets have returned results indicating that the Youanmi granite is highly prospective for mineralisation.
The project currently boasts a resource estimate of 2.4 million tonnes grading 2.97g/t gold; or nearly 1.2 million ounces of contained gold. A resource update is expected in the September quarter.
Using proceeds from its recent $8.74m share placement, the company has also flagged that it will accelerate drilling and carry out additional studies at Youanmi.
Other Joint Ventures
Rox is also earning a 50 per cent and 45 per cent interest in the gold rights of regional VMC and Youanmi joint ventures by contributing the first $800,000 and $200,000 of exploration expenditures, respectively.
While Venus is currently the manager of these JVs, Rox is entitled to assume their management once their earn-in requirements are met.