Rox Resources Limited (Rox” or “the Company”) is pleased to announce it has exercised its option to acquire an additional 20% interest (for a total of a 70% interest) in the OYG Joint Venture at the historic Youanmi mining centre. Venus Metals Corporation Limited (“Venus” or “VMC”) retains a 30% interest.
- Rox ownership of the OYG JV to increase to 70%
- Payment of $2m cash and $1m in RXL shares to JV Partner Venus Metals Corporation Ltd
- Earn-in on Regional JVs (50/50 after completion of earn-in) is progressing well
The Youanmi Gold Project is located 480km NE of Perth and 400km inland and to the east of Geraldton. The project is accessed from the south via Paynes Find (140km) or north via Mt Magnet (150km) from the Great Northern Highway.
Rox acquired its initial interest in the project and regional joint ventures (refer Figure 1 overleaf) via the formation of a series of joint ventures with Venus in 2019 (refer ASX 10 April 2019).
The Youanmi Mining Centre has produced an estimated 667,000 oz of gold (at 5.47 g/t Au) since discovery in 1901 during three main periods: 1908 to 1921, 1937 to 1942, and 1987 to 1997. Most of the gold was produced from the Youanmi Mine with an estimated 96,000oz produced from Youangarra, Penny West, ColumbiaMagenta, Currans and other minor prospects.
The current Resource Estimate at the Youanmi Gold Project is (ASX: 17 April 2019): 2.4Mt at 2.97g/t Au for 1,190,600 ounces of gold.
Rox’s acquisition of the additional 20% in the Youanmi asset is considered to be highly value accretive. With 70% ownership of the OYG JV Rox is also entitled to assume management of the regional joint ventures (Youanmi, VMC and Currans) once the earn-in requirement for an initial interest in the Youanmi and VMC JV’s is met.
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