Rox Resources Updates on Youanmi Gold Project Progress
RXL (RXL) Share Update January 2025 Tuesday 7th
Rox Resources Advances Youanmi Gold Project with Major Drilling and Feasibility Study
Rox Resources Limited (ASX: RXL) has announced significant progress in its Youanmi Gold Project, with a focus on drilling and feasibility studies aimed at transforming the project into a high-grade underground mining operation.
Instant Summary:
- Completion of Tranche 1 and Share Purchase Plan, raising $27 million.
- 35,000m drilling campaign underway with multiple rigs on site.
- Dewatering preparations for Youanmi open pit and underground mine.
- Metallurgical samples received for test work.
- Exploring options for utilizing existing infrastructure.
Capital Raise and Financial Overview
Rox Resources has successfully completed the first tranche and a share purchase plan, raising $27 million to fund the Youanmi Gold Project. A General Meeting is scheduled for January 20, 2025, to approve the second tranche. The funds are allocated to accelerate drilling, update mineral resources, and finalize the Definitive Feasibility Study (DFS).
Drilling Campaign
The company has embarked on a substantial 35,000-meter drilling campaign, with contracts awarded to DDH1 and Strike Drilling. The focus is on converting inferred resources to indicated and expanding near-mine growth opportunities. This campaign is part of a broader strategy to increase the resource base and enhance the project's economic viability.
Infrastructure and Dewatering
Rox is preparing for dewatering activities, with tenders received for evaporation pond refurbishment and pumping infrastructure. This step is crucial for accessing deeper parts of the mine and advancing towards production.
Metallurgical Test Work
Metallurgical samples have been sent to the lab for comminution and flotation test work. These tests are essential for refining the processing methods and designing the plant for future operations. Initial results are expected mid-year, which will inform the DFS.
Pathway to Production
Rox Resources is on track with its production pathway, aiming to commence dewatering in February and continue with DFS-focused test work. The company is also exploring the potential of existing infrastructure to expedite the project timeline.
The progress at the Youanmi Gold Project is expected to positively impact Rox Resources' stock, as the company moves closer to production. The successful capital raise and ongoing drilling campaign demonstrate strong investor confidence and potential for resource expansion.
Investor Reaction:
Investors and analysts are likely to view the updates positively, given the clear pathway to production and the strategic use of funds to enhance the project's value. The ongoing drilling and feasibility studies are key factors in maintaining investor interest.
Conclusion:
Rox Resources is making significant strides in advancing the Youanmi Gold Project. Investors should keep an eye on upcoming results from the drilling campaign and metallurgical tests, as these will provide further insights into the project's potential. The company's strategic focus on resource expansion and infrastructure utilization positions it well for future growth.