Rox Resources Limited (ASX:RXL) has completed a series of transactions relating to the Youanmi Gold Project in Western Australia and has taken over management of the Youanmi mine site.
Following the completion, Rox plans to start drilling immediately in the vicinity of Youanmi mine designed to target the extension of known oxide gold mineralisation.
The transactions include four separate joint ventures established between Rox and Venus Metals Corporation (ASX:VMC) - the OYG JV, Venus JV, Youanmi JV and Currans Find & Pincher JV.
Drilling programs are aimed at building the current gold in resource inventory from 12.4 million tonnes at 2.97 g/t gold for more than 1.19 million ounces.
Last week Rox Resources completed its initial 50% interest in the Youanmi Gold Mine settlement with Venus receiving $2.55 million as well as 25 million ordinary fully paid shares.
Rox is required to meet exploration expenditure of $2 million over the following two years and to cover the costs of holding and managing the project.
At any point up until June 2021 after having met these obligations, Rox may elect to move to 70% ownership of the OYG JV through payment of $3 million in cash and shares to Venus.
Rox is focused on targeting the following prospects in upcoming drilling to identify additional near-surface oxide resources:
- Commonwealth – 4 kilometres northwest of the Youanmi plant with gold mineralisation from surface and hosted with a 3 metre to 10-metre-wide zone of sheared quartz veining and highly altered mafic volcanic rocks; and
- Plant Zone – an undeveloped extensive resource comprising gold mineralisation and associated stockworks of quartz-veining within granite with additional exploration potential for new zones of mineralisation surrounding the Plant Zone.
Bonanza grade Currans Find North results
Rox is highly encouraged by bonanza grade results receiving by Venus at the Currans Find North joint venture project, which is part of the Youanmi Gold Project.
Re-sampling of recent reverse circulation results as one-metre samples has revealed bonanza grades of up to 72.67 g/t and 25.38 g/t/.
These results are:
- 1 metre at 72.67 g/t from 39 metres within a wider intersection of 3 metres at 27.5 g/t from 39 metres; and
- 1 metre at 25.38 g/t from 61 metres within a wider intersection of 2 metres at 13.34 g/t from 61 metres.