Rox Resources Improves Youanmi Deeps Gold Extraction

THE DRILL SERGEANT: Rox Resources (ASX: RXL) with Joint Venture partner Venus Metals Corporation (ASX: VMC) reported on recent metallurgical testwork conducted on the Youanmi Deeps Resource, located within the OYG JV area (Rox 70% and Manager, VMC 30%) in Western Australia.

The JV is undertaking development studies into potential future production at the Youanmi gold project.

The recent work is a preliminary part of the study to establish processing pathways to optimise gold recovery prior to progressing to more extensive and detailed ‘feasibility study level’ metallurgical testwork.

Rox reported that the testwork demonstrated a well understood pathway to very high gold recoveries, something which was not achieved in the 1990s.

Historical production at the mine averaged 86.8 per cent gold recovery, with new testwork improving extraction to 95.6 per cent.

Further testwork in combination with the costing studies is expected to determine the optimal and most economical feasible process solution, exploring various other suitable processes.

“In June 2021 we reported a 30 per cent increase in the Youanmi Deeps Resource, and now we are pleased to report that advances in gold extraction technology over the last 30 years (since GMA built its processing plant) have made a significant difference in gold recovery,” Rox Resources managing director Alex Passmore said in the company’s ASX announcement.

“Preliminary metallurgical testwork indicates a 10 per cent increase on historical gold recoveries by utilising a pressure oxidation leach process (i.e. POX).

“Furthermore, we look forward to results of (scoping level) process plant design and costing later this year being undertaken by Como Engineers who have a long track record of success for both design and development of similar sized gold processing facilities in WA with a variety of flowsheet designs.”








Rox Resources Identifies Potential Parallel Youanmi Gold Lode

THE DRILL SERGENT: Rox Resources (ASX: RXL), and Joint Venture partner Venus Metals Corporation (ASX: VMC), reported identification of a potential new parallel lode at the Youanmi gold mine within the JV’s Youanmi gold project near Mt Magnet in Western Australia (Rox 70% and Manager, VMC 30%).

The identification came during drilling at Youanmi that intersected high-grade mineralisation in a newly defined position in the hanging wall to the main lode structure.

Rox Resources said the high-grade intersection in the untested hanging wall area reveals potential for new lode:

4 metres at 45.5 grams per tonne gold from 341m, including 1.33m at 129.3g/t gold from 341.75m (new hanging wall zone at Junction).

Further high-grade gold intercepts were received from infill and extension drilling at Junction, including:

16m at 4.22g/t gold from 56m, including 3m at 16.4g/t gold from 66m and 3m at 4.1g/t gold from 203m (Junction); and

3m at 15.17g/t gold from 108m and 3m at 3.35g/t gold from 204m (Junction)

Drilling remains on track to deliver further increases in the Youanmi gold resource.

Rox said the identification of high-grade mineralisation at Junction and the new hanging wall zone demonstrates the potential for new discoveries at Youanmi as the company continues to build confidence in its exploration strategy.

“We are very pleased to report strongly mineralised intersections in a newly identified structure near the Youanmi mine and up-sequence from the main-lode ore body,” Rox Resources managing director Alex Passmore said in the company’s ASX announcement.

“This an exciting development as it lies within a previously untested area.

“In addition, extension and infill drilling at Junction continues to deliver high-grade results that will contribute to resource growth at Youanmi and is likely to add ounces in crucial areas that will improve project economics.”








Rox Resources JVs with Venus Metals

THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has struck a Joint Venture with Venus Metals (ASX: VMC) to jointly explore the Youanmi shear zone in Western Australia.

The JV includes a large tenure position along strike from the high-grade Penny West gold deposit.

Rox will acquire an initial 50 per cent interest in the Youanmi gold mine JV (OYG JV) with the ability to increase to 70 per cent.

Rox will manage the project.

The Youanmi gold mine is currently held by Oz Youanmi Pty Ltd (OYG) and is on care and maintenance.

VMC is a party to a Call Option Deed under which it has been granted the option to acquire all of the issued share capital in OYG on or before 30 June 2019.

VMC also holds a substantial regional tenement position and as a 90 per cent participant in JV with a third party.

The agreement between Rox and VMC results in the formation of two further JVs: the VMC Joint Venture, and the Youanmi Joint Venture, granting Rox the right to earn 50 per cent and 45 per cent respectively of the gold rights on those tenements.

VMC is to be the manager of these joint ventures initially with Rox to take over operatorship if it elects to move to a 70 per cent interest in the OYG Joint Venture.

“The acquisition of the Youanmi gold project is consistent with the company’s stated objective of acquiring near-production assets within its financial capacity,” Rox Resources chairman Stephen Dennis said.

Since our new CEO Alex Passmore joined the company, our efforts to identify a suitable development project have increased and we look forward to realising the potential we believe exists at Youanmi”.





Rox Resources Outlines 2018 Exploration Strategy

THE BOURSE WHISPERER: Rox Resources (ASX: RXL) outlined the company’s proposed exploration activities for 2018.

Rox Resources said its strong financial position means that it can undertake substantial exploration programs while it continues to look for new asset opportunities that will build on its current portfolio.

The company has been focused on the acquisition of a suitable project with a clear path to production over the past six months, but it also has nickel and gold resources in hand, which, in the light of the continued strong performance of the nickel and gold price, it believes deserve to be further progressed.

“We are in an enviable position for an explorer heading into 2018,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“We remain well cashed-up with $12 million at the end of December.

“We have an exceptional portfolio of existing assets with exposure to the nickel and gold markets.

“We will continue to pursue these and monitor market conditions, particularly with respect to where we see nickel in coming years, however, our financial position also gives us the firepower to pursue a near-term growth opportunity and we are looking at numerous projects across a range of attractive commodities that we think can deliver significant shareholder value in the short term.”

The company has designed a program of work to both discover new deposits and increase existing resources at both Fisher East and Collurabbie.

At Fisher East diamond drilling is planned to extend the Musket and Camelwood deposits by testing strong downhole EM anomalies, and at Corktree to test a very strong one-kilometre-long EM conductor, detected from surface.

Aircore drilling at Collurabbie and Fisher East will allow continued definition of geochemical trends to allow targeting of deeper drilling to discover new nickel sulphide orebodies.

“At Fisher East our aims are to make a new game changing massive nickel sulphide discovery, while at the same time increasing resources and continuing to assess development options,” Mulholland said.

“At Collurabbie our ultimate aim is to find more massive nickel sulphide orebodies like Olympia.”

Aircore drilling completed at Mt Fisher in December 2017 returned strong results at a number of prospects over a 10km strike length Rox considers warranting follow-up to add to current gold resources.

A program of RC drilling is planned to test targets at Dam, Dam North, Damsel, Damsel South, Dirks and Shiva.

“With our existing resource base of 86,000 ounces of gold, we see the potential for greater than 500,000 ounces of gold in these targets at Mt Fisher.

“If we can achieve that, it will represent a significant gold development opportunity.”





Rox Resources on The Hunt for New Projects

Historically, Rox Resources (ASX: RXL) has demonstrated its ability to acquire, develop, and monetise quality projects.

Rox Resources is currently sitting on a healthy war chest of approximately $12 million after selling the Reward zinc project in the Northern Territory to Teck Australia Pty Ltd.

Rox wasted very little time in showing its strategic intentions by landing a 100 per cent-acquisition of the Collurabbie nickel- gold-copper-PGE project in Western Australia.

The Collurabbie project tenements are situated due east of Rox’s other current operations – the Fisher East nickel sulphide and Mt Fisher gold projects.

The latest results from aircore drilling of strong nickel-copper-PGE anomalies at Collurabbie have again highlighted the project’s potential.

The drill program produced standout results, including:

Olympia North

24 metres at 0.38 per cent nickel, 0.17 per cent copper, 126ppb platinum, 235ppb palladium from 28m, including 8m at 0.5 per cent nickel, 0.29 per cent copper, 228ppb platinum and 317ppb palladium from 36m; and

32m at 0.6 per cent nickel, 0.36 per cent copper, 273ppb platinum, 405ppb palladium from 4m, including 20m at 0.7 per cent nickel, 0.4 per cent copper, 305ppb platinum, 464ppb palladium from 8m.


24m at 0.56 per cent nickel, 0.12 per cent copper, 178ppb platinum and 212 palladium from 16m, including 12m at 0.74 per cent nickel, 0.19 per cent copper, 309ppb platinum and 315ppb palladium from 20m; and

24m at 0.56 per cent nickel, 0.04 per cent copper, 78ppb platinum and 84ppb palladium from 16m, (hole did not reach target depth).

In addition, anomalous nickel results were received north of Ortus along the Beta Sill.

The results indicate lateritic enrichment above a potential large low-grade disseminated nickel sulphide mineralized body:

27m at 0.45 per cent nickel from 4m; and

20m at 0.39 per cent nickel from 4m.

An aircore drilling campaign was completed at Mt Fisher, where Rox has already identified mineral resources of more than 86,000 ounces of gold.

The latest drilling focused on the Dam, Damsel, Dirks and Shiva prospects, delivering results that provide excellent potential for further exploration to add to the current resources.

Rox believes the Dam-Damsel-Shiva area has similarities to the 3.6 million-ounce Bronzewing deposits to the southwest, and is using the knowledge base built up in the 1990s and 2000s regarding Bronzewing and the Yandal Belt in its exploration program design.

The Damsel area hosts a gold indicated mineral resource of 726,000 tonnes at 2.3 grams per tonne gold for approx. 55,000 contained ounces of gold.

The aircore drilling extended the anomaly surrounding this resource by 800m to the south, suggesting possible extension and increase to the existing mineral resource.

Highlights of the aircore drilling include:

4m at 6.1g/t gold from 48m;

4m at 2.75g/t gold from 32m;

8m at 2.4g/t gold from 20m; and

4m at 3.5g/t gold from 40m.

The Collurabbie acquisition set a precedent for the company that it is eager to repeat in the coming months.

Rox is on the lookout for the acquisition of suitable projects, which it hopes will deliver meaningful shareholder value and, just as importantly, allow the company to progress to near-term production.

No doubt such an acquisition is liable to take ‘flagship’ billing from the company’s current portfolio, however, Rox is determined to continue exploration and development activities at its nickel and gold assets.

“We are watching the nickel price closely and have been encouraged by its recent run,” Rox Resources managing director Ian Mulholland told The Resources Roadhouse.

“Having said that, we do believe nickel probably has another year or two before it reaches a price where we will see previously working operations reopen and deposits, particularly the class 1 sulphide deposits, become economic.

“All the signs are there – demand is increasing, and supply has gone down.”

Mulholland’s optimism received support from some powerful corners.

The World Bank Group, in its 2017 Commodity Markets Outlook, October said, “All metals prices increased in the third quarter, led by zinc and nickel, which jumped 14 percent on robust demand and reduced mine production (zinc) and solid stainless steel demand (nickel).

“The market is expected to remain in deficit in the near term.

“Over the longer-term, demand is seen increasing to meet growing needs for nickel in lithium-ion batteries for electric vehicles and storage.”

According to recent research note from McKinsey & Company – The future of nickel: A class act, the global nickel market is about to enter a two-nickel market, comprising two distinct commodity segments.

These are traditional ferronickel pig iron (NPI) players (Class 2) versus (Class 1) the rechargeable batteries for electric vehicles (EVs).

“The global nickel market has traditionally been driven by stainless steel production using both high-purity class 1 and lower-purity class 2 nickel products,” McKinsey & Company said.

“Significant expansion of low-cost class 2 nickel capacity over the past decade – in particular NPI – has caused nickel prices to fall from the highs of US$29,000 per metric tonne in 2011 to an average of just above US$10,000 per metric metre in 2017, resulting in the curtailment of higher-cost class 1 capacity.

“However, the growing adoption of EVs and the resulting demand for high-purity nickel is providing a much-needed reprieve for the industry as a shift towards nickel-rich battery chemistries accelerates.”

McKinsey suggested that with demand for EVs expected to hit 31 million units by 2025, demand for class 1 nickel could increase from its current 33,000 tonnes to 570,000 tonnes by 2025.

Other analysts suggest this could occur much earlier, perhaps 2020.

Rox may be ready for the nickel worm to turn, but it is not prepared to sit around and wait for it to happen.

Since declaring its project accumulation strategy last year, the company has undertaken a first-pass review of many opportunities, assessing them against its project acquisition criteria.

Three projects are currently the subject of more advanced assessment including due diligence, data review and suitability to deliver near-term production and revenue.

Rox has developed a stringent, well-structured investment and technical criteria which each project is being assessed against.

It has identified specific commodity targets which are currently displaying strong macro fundamentals, including increased pricing, but which show a lack of any new near-term production options to cater for the surging demand globally.

These commodities include, but are not restricted to zinc, which has recently seen prices hit a ten-year high, and copper, with prices recently at three-and-a-half year highs on supply fears due to a lack of near-term production projects and increasing demand from major economies such as China.

“We remain one of the ASX’s well-cashed-up junior explorers with $12 million at the end of December,” Mulholland said.

“Our exceptional portfolio of existing assets provides exposure to the nickel and gold markets and we will continue to monitor market conditions, particularly with respect to where nickel goes in coming years.

“Importantly, our financial position gives us the firepower to aggressively pursue near-term growth opportunities and we are looking at numerous projects across a range of attractive commodities that we think can deliver significant shareholder value in the short term.”


Rox Resources Limited (ASX: RXL)
…The Short Story

Level 1, 34 Colin Street
West Perth WA 6005

Ph: +61 8 9226 0044


Stephen Dennis, Ian Mulholland, Brett Dickson