ROX Resources Share Price Doubles Thanks to Grace Gold (ASX:RXL)
It seems the Yilgarn Craton has plenty more gold to yield with Rox Resources Ltd [ASX:RXL] the latest explorer to deliver high-grade gold fines.
The RXL share price has now doubled since we last covered the company’s operations.
And that was only last week.
RXL’s share price is up 27.42% this morning, or 1.7 cents to trade at 7.9 cents per share.
The current bump in the share price has followed nearly a week of strong consecutive gains that has pushed the explorer closer to its 10-year high of 9.8 cents per share.
Youanmi continues to produce
Last week RXL announced it would increase its stake at Youanmi (Grace) from 50% to 70% at the cost of $2 million in cash and $1 million in RXL shares to Venus Metals Corporation Ltd [ASX:VMC].
Shareholders seemed pleased at this news, along with the announcement of high-grade gold mineralisation.
Today’s announcement follows on from last week.
A series of infill drilling has confirmed further shallow depth, high-grade gold mineralisation at the joint venture.
Some of the highlights include:
- 4m at 88.81 grams of gold per tonne (g/t) from 27m, including: 2m at 176.03g/t from 28m
- 11m at 18.75g/t from 8m, including: 3m at 61.27g/t from 10m
- 9m at 9.28g/t from 9m, including: 2m at 33.53g/t from 11m
- 4m at 7.56g/t from 17m
RXL said these results relate to drilling designed to infill coverage on the shallow high-grade part of the emerging Grace prospect to facilitate resource estimation.
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Based on its interpretations, RXL’s results increase the extent of mineralisation of the shallow, near-surface lode at Grace, and confirm and upgrade the results seen previously.
As of 2019, the project already had an estimated gold resource of 2.4Mt at 2.97g/t for 1,190,600 ounces of gold.
Source: ROX Resources
With deeper drilling results pending, we will have to wait before we get a specific estimate upgrade.
RXL Managing Director, Alex Passmore said:
‘These strong infill results are extremely encouraging and endorse our interpretation for Grace. The results, along with outstanding RC assays, will be complemented by upcoming diamond drilling to facilitate a maiden resource estimate, which we are aiming to have completed later this year.’
Current results suggest the resource remains open in multiple directions.
Gold price back on the rise
After months of tracking sideways, the gold price may have finally broken out of its current bounds in USD terms.
With the follow on affects of COVID-19 beginning to be realised, the gold price could be on the march upwards again:
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For The Daily Reckoning Australia