Mid West Region

YOUANMI GOLD MINE  (OYG JV)

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 The Youanmi Gold Project is located 480km NE of Perth and 400km inland and to the east of Geraldton in the Mid West Region of Western Australia.

The Youanmi Gold Mine located near the centre of the project tenement package has historic production of 667,000 ounces of gold grading 5.42g/t from open-pit (1987 – 1993) and underground operations.  The operation was closed in 1997 when the gold price was approximately $400 per ounce with the last parcel of ore mined underground at 14.6 g/t Au grade.

Venus Metals Corporation Limited (ASX: VMC) retains a 30% interest. Rox Resources Limited (ASX: ROX) holds a 70% interest in the OYG Joint Venture and is the manager at the historic Youanmi mining centre. 

Youanmi Project Highlights to date.

• Quality high-grade resource reported at flagship project, Youanmi (3.0Moz at 3.78 g/t Au)

▪ Including high-grade underground component of 2.2Moz at 6.9g/t Au

▪ Resource remains open along strike and down dip with further growth likely

▪ 39% of resources currently in the indicated category (Jan 2022)

▪ Resource / Reserve definition drilling inferred -> indicated (ongoing)

• Albion process preferred method for sulphide ore bodies at Youanmi (92.2% average gold extraction for underground)

• Feasibility studies continuing into the restart of Youanmi

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The Youanmi Project Mineral Resource Estimate of 24.6Mt at 3.78 g/t Au for 3.0Moz of gold can be categorised into a near-surface portion of 14.7Mt at 1.69 g/t Au for 0.8M ounces of gold and the Youanmi deeps of 9.9Mt at 6.9 g/t Au for 2.2M ounces of gold.  (ROX:ASX 20 January 2022). 

 

 

View Through

 

View through the Youanmi lode system looking north-west including drill intercepts, pits and underground development and June 2021 resource model

Metallurgical Testwork 

Albion Process amenability test work (refer RXL ASX release 23 December 2021) was completed as part of a broader assessment of a suite of gold processing options including standard cyanide leach, roasting, pressure oxidation and ultrafine grind (“UFG”) followed by atmospheric cyanide leaching. The test work was conducted by Orway Mineral Consultants utilising Core Technologies Albion Process technology. The Albion Process has emerged as the most suitable method for the treatment of Youanmi Deeps Resource with average gold extraction of 92.2%. The Albion process offers substantial capital and operating cost benefits, in conjunction with recovery benefits, in comparison to other processing methods studied.

The Albion Process™ was developed at Core’s Albion facilities (previously owned by MIM/Xstrata) during the early 1990s and is a combination of ultrafine grinding and oxidative leaching at atmospheric pressure. It is a highly effective process for the treatment of a wide range of sulphide based metal and precious metal concentrates, for precious and base metal recovery. 

The Albion Process is the preferred treatment method for Youanmi Deeps ore and is likely to deliver the lowest capital and operating costs of the methods evaluated.

The next test work phase will include flotation grind size and reagent suite optimisation, Albion optimisation test work, Ultrafine Grind energy signature plots, engineering data tests (viscosities, tailings characterisation, thickener tests etc.) and comminution characterisation. Optimisation work is typically on a Master Composite sample that is representative of the overall resource blend, with variability confirmation test work targeting grade, lithology, and depth.


Youanmi Gold Project work will continue in 2022 including 

Additional drilling results from November and December 2021 will be incorporated into the next Mineral Resource Estimate update expected in the June 2022 quarter 

Following the recent substantial upgrade to the Youanmi Mineral Resource Estimate, the Company expects concept level project economics to be very robust and is hence continuing to rapidly pursue its investigation of development pathways for the Youanmi Gold Project.

Studies into optimal production scenarios are well advanced these include:

Metallurgical test work, processing plant design, underground mine design and open-pit optimisations, dewatering and geotechnical studies, waste rock characterisation, and environmental baseline testing

Focused on growing the resource base and progressing feasibility studies with the aim of restarting production at the Youanmi gold mine (source ASX: ROX Investor Presentation RIU - Explorers Conference 15.2.22)

 

REGIONAL JV GOLD EXPLORATION

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Venus Metals and Rox Resources have three regional joint ventures covering regional exploration at Youanmi.

The high-grade historic Currans Find JV is located in the centre of the Youanmi Gold Project where each holds a 45% interest in all minerals;

The VMC JV where Rox has earned a 50% interest in the gold rights; and The Youanmi JV where Rox has earned a 45% interest in the gold rights.

Highlights from Regional joint ventures

• All results received for 426 holes 22,455-metre air-core drilling program completed on Youanmi Regional JV tenements

• This air-core drilling campaign intersected regolith gold anomalies within NW trending structures over approximately 4km of strike

• High-priority target areas identified for follow up drilling

• 4m @ 2.37 g/t Au from 68m within a broader zone of 16m @ 0.91g/t Au from 56m intersected in RXAC718 close to the Youanmi Shear Zone and within a 1.5km long strong anomaly 

• > 50km strike of Youanmi Shear Zone largely untested by historic drilling

Youanmi Regional exploration program is planned for as:

Follow up infill and extensional air-core drilling to further define the geometry and extent of oxide mineralisation at Target Areas 1-2, focusing initially on the three mineralised structures at Target Area1.

Further drilling at Target Areas 3-4

Regional targeting generation along the strike of the Youanmi Shear Zone