Rox Resources Kicks Off Extensive Drilling at Youanmi Gold Project
RXL (RXL) Share Update August 2024 Sunday 11th
Rox Resources Commences Major Drilling Program at Youanmi Gold Project
Rox Resources Limited (ASX: RXL) has announced the commencement of a significant 11,000-meter drilling program at its Youanmi Gold Project in Western Australia. This initiative aims to enhance resource definition and explore near-mine areas for potential expansion.
Instant Summary:
- 11,000m drilling campaign at Youanmi Gold Project.
- Resource definition drilling to convert Inferred Resources to Indicated classification.
- Near-mine exploration to test extensions of Youanmi Main Lode and high-grade Paddy’s Lode.
- Drill-for-equity agreement with Topdrill Pty Ltd covering up to 50% of drilling costs.
- First drill assay results expected in September 2024.
Drilling Program Overview
Rox Resources has embarked on an ambitious 11,000-meter drilling program at its Youanmi Gold Project. This program includes 7,000 meters of Reverse Circulation (RC) drilling and 4,000 meters of diamond drilling (DD), scheduled to take place from August to October 2024. The first assay results are anticipated in September.
The primary objective of the resource definition drilling is to upgrade selected Inferred stopes within the current 2.3Moz Mineral Resource to the higher confidence Indicated classification. This will be achieved through drilling at Pollard, United North, and Youanmi Main. Additionally, the drilling will provide valuable data for metallurgical testing as part of the Definitive Feasibility Study (DFS).
Near-Mine Exploration
Near-mine exploration will focus on the Youanmi South prospect area, particularly targeting Paddy’s Lode. This area has shown high-grade intercepts in previous drilling campaigns, and the new phase aims to further test its potential. The exploration could significantly increase the Resource and contribute to the 103kozpa Production Target outlined in the recent Pre-Feasibility Study.
Drill-for-Equity Agreement
Rox Resources has entered into a drill-for-equity agreement with Topdrill Pty Ltd, allowing the company to settle up to 50% of drilling costs in shares. This agreement underscores Topdrill's confidence in the project's potential and aligns both companies' interests.
Regional Exploration
A small-scale regional exploration program will also be conducted to test mineralization along secondary structures propagating from the major Youanmi Shear Zone. This initiative aims to identify additional mineralized areas that could further enhance the project's value.
The commencement of this extensive drilling program is a positive development for Rox Resources. Successfully upgrading Inferred Resources to Indicated classification will enhance the project's credibility and could attract more investment. The near-mine exploration has the potential to uncover significant new resources, further boosting the project's prospects.
Investor Reaction:
Analysts are likely to view this announcement favorably, given the potential for resource expansion and the strategic drill-for-equity agreement with Topdrill. The market may react positively to the first assay results expected in September, which could provide early indications of the program's success.
Conclusion:
Investors should keep a close eye on the progress of the drilling program and the forthcoming assay results. Rox Resources' strategic initiatives at the Youanmi Gold Project could significantly enhance the project's value and provide substantial returns for shareholders.