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West Australian gold exploration and development company Rox Resources Limited (“Rox” or “the Company”) (ASX: RXL), in conjunction with its joint venture partner Venus Metals Corporation (ASX: VMC), is pleased to report further significant assay results from the ongoing resource development program at the 3.2Moz Youanmi Gold Project (OYG JV), located near Mt Magnet in WA.
- Further assays received from Youanmi resource development drilling at Link. Results include:
- RXDD090: 5.86m @ 2.87g/t Au from 393.83m, incl: 2.87m @ 4.80g/t Au from 394.70m, and: 5.12m @ 4.46g/t Au from 479.33m, incl: 2.72m @ 6.81g/t Au from 480.12m
- RXDD094: 1.12m @ 13.07g/t Au from 434.88m
- RXDD090: 5.86m @ 2.87g/t Au from 393.83m, incl: 2.87m @ 4.80g/t Au from 394.70m, and: 5.12m @ 4.46g/t Au from 479.33m, incl: 2.72m @ 6.81g/t Au from 480.12m
- Drilling at Link has been targeting an upgrade in Resource category over a 460m strike length between 230m and 475m below surface. The consistency of the high-grade results received to date bodes well for future Resource updates as well as for potential depth extensions.
- Further drilling results received from near-mine exploration at Midway, including:
- RXDD073: 0.54m @ 16.17g/t Au from 290.65m
- RXDD074: 7.00m @ 5.95g/t Au from 87.00m
- RXDD085: 1.37m @ 21.89g/t Au from 354.69m
- RXRC462: 2.00m @ 7.93g/t Au from 142.00m
- Drilling completed at Midway has returned several high- grade results which continue to define the developing high-grade lode structure.
- Initial RC drilling to test potential supergene mineralisation and up-dip extensions at the Paddy’s Lode discovery has returned the following assays:
- RXRC481: 16.00m @ 1.38g/t Au from 56.00m
- RXRC483: 4.00m @ 5.33g/t from 202m
- Targeted geophysical survey (IP) has commenced at the Youanmi South area and Midway to identify potential high grade, dilatational zones along the mineralised structural corridor to be targeted in the next phase of drilling.
The assays are from a recently completed 28,507m (increased from 23,000m) resource development and near- mine exploration drilling program. Resource development drilling, which was focused on the high-priority Link and Kathleen areas of the project, was designed to convert Inferred Resources to the higher confidence Indicated Resource classification.
Drilling at Link was designed to target an upgrade of the Inferred Resource over a strike length of 460m and between 230m and 475m below surface. Assays received to date at Link have provided confidence in the geological interpretation and bode well for improving resource confidence as part of future resource updates, while also highlighting the down-dip potential of the ore zone.
Near-mine exploration drilling was focused on further evaluating the Midway exploration target identified in 2021, as well as the more recent Paddy’s Lode discovery in the Youanmi South Project area identified in early 2023.
Both prospects continue to demonstrate significant upside potential for the Youanmi Gold Project which will be an important focus for ongoing exploration. A geophysical survey has commenced recently to help further define the high-grade dilatational zones for the next phase of drill targeting.
Managing Director Comments
Rox Resources’ Managing Director, Mr Robert Ryan, said the latest drilling results continued to improve confidence in the Resource at Link while also reinforcing the exciting upside potential at both Midway and Paddy’s Lode.
“The latest two holes from Link continue to confirm the current geological interpretations and will improve the confidence in the Inferred Mineral Resources. Assays are outstanding for the four remaining diamond holes, which we expect will further increase confidence in the Resource and set the foundation for the Mineral Resource update targeted for later this year.
“Results from the near-mine discovery at Midway also continue to impress with high-grade results returned at excellent underground mining widths. The high-grade zone at Midway has been intersected over a 150m strike and 200m vertical extent and is still open along strike and down plunge.
“Meanwhile RC drilling at Paddy’s Lode targeting the potential for shallow high-grade material up-dip of the discovery holes has returned a broad zone of lower grade mineralisation close to the east-west offsetting fault.
“Our interpretation is that high-grade mineralisation appears to be constrained within 80m to 100m of the E-W fault, but remains open down-plunge. Similar to the Youanmi Main Lode and Link, further dilatations of the mineralised structure will yield further high-grade exploration targets and the geophysical survey currently underway will provide valuable information to target these high-grade zones both to the north, and stepping along strike to the south.
“We are still a long way from unravelling the potential of this emerging Paddy’s Lode area and we remain confident in the potential of this area to host a significant zone of high-grade mineralisation. With the help of the current geophysical survey, we look forward to getting rigs back on the ground for the next phase of exploration.”
Figure 1. Drilling in progress at the Youanmi Gold Project.
Resource Drilling Results
The diamond and Reverse Circulation (RC) drilling program at the Youanmi Project was completed on 11 June 2023 with a total of 28,507 metres drilled.
The resource development drilling focused on converting Inferred Resources to the Indicated Resources classification at the high-priority Link and Kathleen areas (Figure 2). This drilling is targeting high-grade mineralisation over a 460m strike length and to a depth of 475m below surface. The drilling was designed to delineate sufficient Indicated Resources for future feasibility studies, as well as to confirm the continuity of gold grades proximal to the current Indicated Resources.
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This article includes content from Venus Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
VMC:AU
Full HMW Phase 2 (21Ktpa LCE) Mining Permit Granted
Highlights
- Phase 2 Hombre Muerto West (HMW) mining permit has been granted, securing the pathway for Galan’s continued development at HMW at an efficient commercial scale up to 21,000 tpa LCE
- The granted permit includes all construction activities including ponds, plant, onsite laboratory, power and other required infrastructure
- HMW Phase 2 production would be cash flow positive at today’s lithium carbonate prices. Independent benchmarking highlights HMW as being within the first quartile of the lithium industry AISC cost curve
- The granting of Phase 2 permits supports Galan’s application for the RIGI, Argentina’s new incentive regime for large scale investments
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are delighted with the grant of the Phase 2 mining permit which continues to solidify our strong relationship with the local Catamarcan authorities. It will allow Galan to increase production over threefold from Phase 1 and produce a premium quality lithium chloride product, which is in high demand.
Importantly, HMW is positioned in the first quartile of the cost curve and Phase 2 production would be cash flow positive even at today’s prevailing lithium carbonate prices. HMW is now poised to be a long term and resilient globally significant source of lithium supply.”
Figure 1. Wood Mackenzie 2028 Lithium Cost Curve: AISC (US$/t LCE)Wood Mackenzie Disclaimer “The foregoing information was obtained from the Lithium Cost Service™ a product of Wood Mackenzie.” "The data and information provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as specified in a written agreement you have entered into with Wood Mackenzie for the provision of such of such data and information." Information sourced in December 2024.
Wood Mackenzie’s emissions benchmarking service has also placed HMW within the first quartile of the industry greenhouse gas emissions curve. Strong environmental, social and governance principles have been a governing tenet of the development strategy for HMW, which focuses on the production of a lithium chloride concentrate from conventional evaporation allowing for significantly reduced energy and water consumption. In line with Galan’s commitment to social principles, at least 70% local content in employment and contracting opportunities has been targeted at HMW and remains a keen focus for the Government of Catamarca and Galan. Skills and training opportunities have been provided to increase local participation, with a view to creating a skilled local workforce and supply chain for sustainable long-term operations.
Galan has demonstrated considerable progress on the HMW project, including:
- 2019: Discovery well drilled, marking the inception of the HMW project.
- 2020-2024: Mineral Resource established and expanded, now ranked as a global Top 20 lithium resource.
- 2023: Completion of Phase 1 and Phase 2 Definitive Feasibility Studies (DFS), validating the project's technical and economic viability (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
- 2023: Secured all required approvals for Phase 1 construction and commenced construction.
- 2024: Continued construction and built a lithium inventory in the ponds of over 6,000 tonnes LCE.
- 2025: Full mining permit for Phase 2 granted, securing the pathway for continued development.
Chairman of Galan, Richard Homsany, commented:
“The grant of the Phase 2 mining permit is testament to the hard work and commitment of our dedicated team, and also highlights the strong long-term relationships we have fostered with the Government of Catamarca and local communities, who we sincerely thank for their continued ongoing support. Through action we have demonstrated the benefits of our HMW operations: economically though the generation of employment, procurement and trade opportunities and socially through education, community programs and training opportunities. We look forward to continuing to work in co-operation with the Government of Catamarca and all stakeholders to maximise the benefits of Galan’s operations in the community, and ensure they are sustainable.”
The HMW project is separated into four production phases. The Phase 1 DFS is based on the production of 5.4ktpa LCE of lithium chloride concentrate, with production anticipated in the second half of 2025.
The Phase 2 DFS, announced on 3 October 2023, targets medium-term production of 21ktpa LCE of lithium chloride concentrate. Arcadium Lithium Plc, which is subject to a change of control transaction from Rio Tinto Limited, produced around 20ktpa LCE from the adjacent mining permit at Salar de Hombre Muerto in 2023.
Phase 3 at HMW aims to achieve 40ktpa LCE within a 2-5 year horizon whilst Phase 4 represents a longer-term target of 60ktpa LCE, leveraging lithium brine sourced from both HMW and Galan’s other 100%-owned project in Argentina, Candelas.
The phased development of the HMW and Candelas Mineral Resources mitigates funding and execution risk and allows for continuous process improvement. The production of lithium chloride as a product is in demand from lithium converters as battery chemistry is trending towards lithium iron phosphate technology. Galan received permission to sell lithium chloride from the Catamarca Government earlier in 2024.
The Phase 2 mining permit also supports Galan’s application for the Argentinian Régimen de Incentivo para Grandes Inversiones (RIGI). Subject to meeting the eligibility criteria for RIGI, the RIGI can provide the following key incentives:
- The corporate income tax rate is set at 25% (ordinarily 35%)
- Accelerated depreciation
- Absence of time limits in the computation of tax loss carry forwards
- Concessions on import duty, VAT and withholding tax
- Greater flexibility on foreign exchange movements
- Fiscal stability for a period of 30 years
Galan’s JP Vargas de la Vega further stated:
“Our plan for HMW is unchanged, beginning with Phase 1. Our immediate focus is finalising the financing and offtake arrangements for Phase 1. Once secured, our operations team will complete construction and commence first production of lithium chloride concentrate. While the operations team advances Phase 1 construction our corporate team, supported by advisors, will commence a project financing process for Phase 2.”
Click here for the full ASX Release
This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
