THE DRILL SERGEANT: Rox Resources (ASX: RXL) announced drilling has commenced at the company’s Youanmi gold project Joint Venture in Western Australia.
Rox Resources, along with JV partner Venus Metals (ASX: VMC) kicked off the 14,000 metre program that is to continue throughout August and September and is the first major and systematic exploration program carried out at the site since 1997.
The company said the drilling is testing both: (1) new conceptual targets that have the potential to open up new areas of mineralisation and (2) drilling out extension positions of the Youanmi gold deposits or areas where the JV considers there is potential for repeats.
Key focus areas for this campaign are the high-grade Commonwealth prospect and areas proximal to existing pits where there are likely extensions or repeats of mineralisation not mined in a $400 per ounce mining scenario (i.e. targeting a super pit concept).
Rox pointed out that many of the targets have been developed using technology that wasn’t otherwise available to earlier operators in the 1980s and 1990s.
“Following the completion of the Youanmi transaction only five weeks ago I am very excited to be embarking on the first major exploration campaign in this very prospective area since the 1990s,” Rox Resources managing director Alex Passmore said in the company’s announcement to the Australian Securities Exchange.
“Rox and its JV partner see real potential for new high-grade discoveries in the area and also for strong resource growth close to existing infrastructure at Youanmi.”
The undeveloped Commonwealth-Connemara deposits and mineralised trend is centred only four kilometres northwest of the Youanmi plant.
Gold mineralisation is from surface and hosted within a 3 metre to 10 metre wide zone of sheared quartz-veining and highly altered mafic volcanic rocks.
The series of shallow historical open pits at Youanmi were mined over 20 years ago under a much lower gold price environment.
Part of the existing Mineral Resource Estimate at Youanmi is derived from mineralisation near these pits, however limited drilling constrains the resource potential.
Rox indicated that the current drilling program will test for extensions both down dip of existing mineralisation and between the old pits.