Venus, Rox table solid resource boost at WA gold project

ASX-listed explorer Venus Metals and joint venture partner Rox Resources have unveiled a significant boost of the mineral resource estimate for the Youanmi gold project near Mt Magnet in WA.

According to the company, it has lifted the operation’s near surface resources by 204,000 ounces to more than 1 million ounces and lifted the project’s total gold resource to 3.2 million ounces through extensive exploration.

The duo believes the asset will support the open pit portion of its scoping study, that is earmarked for a mid-year completion date.

Since its acquisition and start of drilling in mid-2019, the Youanmi gold project has churned out a significant volume of gold, primarily in the OYG joint venture region of the project.

Youanmi is on a 36km strike length of its namesake Youanmi greenstone belt and within touching distance of the Ramelius-owned Mount Magnet gold mine. Venus holds 30 per cent and Rox holds the remaining 70 per cent of the near-mine gold operation and also picks up the venture’s management duties.

According to Rox, it has used independent geological modelling consultant, Widenbar Associates, to complete the near-surface resource estimate and builds on the previous figures completed in June last year.

Interestingly, Rox says the all-in exploration costs for the project's underground and near-surface resources since its acquisition show an average $7 per ounce discovery cost for the subterranean and about $10 per ounce discovery cost for the shallower resource.

Following the resource increase, Rox says it will press ahead with its two-pronged strategy of prospecting and performing mining studies unilaterally.

Some of the planned initiatives at Youanmi include an inferred to indicated resource conversion, additional exploration drilling, feasibility level underground and open pit metallurgical test-work.

The to-do list also takes in a processing plant and mine design scoping study and environmental work.

With a resource estimate exceeding 3 million ounces, Venus and Rox look to be unearthing a significant gold deposit at Youanmi and with a resource conversion and more exploration on the cards, the project may become one to watch.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au