- Rox Resources Limited's (ASX: RXL) shares gained as much as 69% on Thursday, 02 March 2023, after announcing its initial drill results.
- The update says the exploration team has identified various high-grade, mineralized structures near the Youanmi Main Pit.
- This first hole drilling results at Youanmi South opened up new exploration opportunities for the company to find the potential resource in the untested area.
Rox Resources Limited (ASX: RXL) stock hit the roof on 02 March 2023 as it announced its initial drilling results from the programs undergoing with the joint venture partner, Venus Metals Corporation (ASX: VMC), at Youanmi Gold Project (OYG JV).
The shares of the gold miner rose to an intraday high of AU$0.245 at around 03:15 pm AEDT, rising as much as 69% compared to its previous closing price of AU$0.145 on Monday, 27 February. RXL shares entered a trading halt on Tuesday, pending today's announcement.
The company has two advanced gold assets--the Youanmi Gold Project and the Mt Fisher Gold project in Western Australia.
The update says that the exploration team has identified various near-mine targets, including the 'Youanmi South' prospect and the high-grade 'Midway' structure, which are high-grade, mineralized structures near the Youanmi Main Pit.
The drilling hole, RXRC458, is the first in a series of holes to test the structural trends, which are gold hosts. The company said the hole intersected a “bonanza intercept” of '28m @ 34.81g/t Au from 204m'.
A scissor hole drilled to constrain this intercept was abandoned due to bogged drill rods but is now planned for further drilling to determine the orientation and dip direction of this exciting discovery and to 'constrain the orientation of this high-grade zone'.
On the Midway structure, out of the interpreted strike length of more than 1,000m, only 100m has been tested so far till date.
Rox Resources is reviewing the splay structures at both the Youanmi South and the Midway to identify new high-grade zones. The current results from Youanmi South show significant potential. According to the update, the bonanza intercept exceeded expectations. This first hole drilling results at Youanmi South opened up new exploration opportunities for the company to find the potential resource in the untested area.
Additionally, the company has interpreted a new structure around 100m south of the Midway structure as well as it has mobilized an additional drill rig to the site to speed up the current drilling program.
This update gave this small-size company's (AU$32.53 million market capitalization on 02 March 2023) shares a high ride on Thursday.