Rox shifts into top gear at Youanmi, Fisher East projects
Link copied to
Special Report: Rox Resources is poised to accelerate its growth plans at the Youanmi gold and Fisher East nickel projects after completing a $4m placement.
Its successes and moves have certainly not gone unnoticed with Rox Resources (ASX:RXL) now receiving binding commitments from institutional and sophisticated investors for a $4m share placement priced at 2.4c per share.
These include a number of new institutional investors, which further highlights the company’s growing visibility.
Proceeds from the placement will be used to further define high-grade, near-surface gold mineralisation at the Youanmi project (about 56 per cent of expenditure) and implement nickel exploration plans at Fisher East and Mt Eureka.
At Youanmi, Rox intends to continue drilling at the Youanmi Main Pit area as well as the Youanmi South, United North, Kathleen and Commonwealth prospects in a two-phase program.
Youanmi has a resource of 12.4 million tonnes at 2.97 grams per tonne (g/t) gold for 1.19 million ounces of contained gold.
Rox also plans to accelerate drilling at the Sabre prospect to increase its existing Fisher East nickel resource of 4.2 million tonnes at 1.9 per cent for 78,000 tonnes of contained nickel.
“The company is now well positioned to aggressively accelerate its exploration programs across both its gold and nickel projects and looks forward to updating the market as results arise,” managing director Alex Passmore said.
Earlier this month, Rox and its joint venture partner company recorded top gold hits of 2m at 23.67g/t gold from 76m, 4m at 6.57g/t from 64m and 4m at 8.17g/t from 96m at the Youanmi South and Commonwealth prospects.
Drilling also delivered extensions to the near-mine mineralisation with intersections including 5m at 5.59g/t from 81m, including 1m at 23g/t, and 9m at 3.77g/t from 58m, including 5m at 5.93g/t.
Meanwhile, Rox can earn the interest in Mt Eureka from Cullen by spending $2m on exploration over a six-year period.
>> Now watch:90 Seconds With…Alex Passmore, Rox Resources