Rox Resources Begins Extensive Drilling at Youanmi Gold Project
RXL (RXL) Share Update December 2024 Wednesday 4th
Rox Resources Initiates Major Drilling Program at Youanmi Gold Project
Rox Resources Limited (ASX: RXL) has announced the commencement of a significant 35,000-meter drilling program at its Youanmi Gold Project in Western Australia, aiming to convert resources and expand the project's potential.
Instant Summary:
- 35,000m drilling program initiated at Youanmi Gold Project.
- Focus on resource growth and conversion from inferred to indicated.
- Drilling contracts awarded to Strike Drilling and DDH1 Drilling.
- First assay results expected by February 2025.
- Program completion anticipated by May 2025.
Drilling Program Overview
Rox Resources Limited has embarked on a comprehensive drilling initiative at the Youanmi Gold Project, consisting of approximately 25,000 meters of diamond drilling and 10,000 meters of reverse circulation drilling. This program, which has commenced ahead of schedule, is designed to enhance resource definition and facilitate resource growth.
The drilling efforts are primarily focused on converting inferred resources to indicated status, thereby increasing the confidence level in the project's mineral estimates. This step is crucial as Rox Resources progresses towards a Definitive Feasibility Study (DFS), expected in the second half of 2025.
Strategic Focus Areas
The drilling will target key areas such as the Kathleen/Youanmi North and Pollard zones, where high-grade targets have been identified. These areas hold significant potential for adding early-access ounces to the mine plan, which could materially impact the overall project strategy.
Rox Resources' CEO, Phillip Wilding, expressed enthusiasm about the program's early start and its role in streamlining workstreams to deliver the Youanmi DFS. The company aims to keep the momentum going into the New Year, testing exciting targets identified in previous campaigns.
Program Phases
The drilling program is divided into growth and conversion stages, with a budget of approximately $11 million. The growth phase aims to add shallow gold ounces beneath the Kathleen and Pollard areas, while the conversion phase focuses on upgrading inferred stopes at Pollard, United North, and Youanmi Main to indicated classification.
Stage 1 will concentrate on areas near the current resource and high gap zones, allowing for initial analysis before further extensional and infill drilling. Stage 2 will build on the results of Stage 1, continuing to enhance the resource where significant assay results are returned.
The initiation of this extensive drilling program is a positive indicator for Rox Resources, as it demonstrates the company's commitment to advancing the Youanmi Gold Project. The potential conversion of resources and the expansion of the project's mineral base could enhance the company's valuation and attract investor interest.
Investor Reaction:
Analysts are likely to view this development as a strategic move that could significantly bolster Rox Resources' resource base. The early start of the program and the focus on high-grade targets may lead to positive sentiment among investors, particularly those interested in gold exploration and development.
Conclusion:
Rox Resources' proactive approach in commencing the Youanmi drilling program ahead of schedule positions the company well for future growth. Investors should keep an eye on the assay results expected in early 2025 and the subsequent impact on the project's feasibility and valuation.