The Rox Resources Limited (ASX: RXL) share price is soaring today after the small-cap ASX miner reported more high gold grades at Youanmi.
At the time of writing, Rox Resources shares have jumped 17.74% to 7.3 cents after rallying as much as 29.03% in morning trade.
Rox Resources is an emerging Australian minerals exploration company, with advanced gold and nickel projects in Australia.
The company owns a 70% interest in the Youanmi Gold Mine, and wholly-owns the Mt Fisher Gold Project, Fisher East Nickel Project and Colluabbie Nickel Project, all located in Western Australia.
Why is the Rox Resources share price spiking?
This morning, Rox Resources reported further high-grade gold results from the drilling program underway at the Grace prospect at Youanmi.
Rox stated that shallow infill drilling has returned more high gold grades, including:
- 4 metres at 88.81 grams per tonne (g/t) gold from 27 metres, including:
- 2 metres at 176.03 g/t gold from 28 metres;
- 11 metres at 18.75 g/t gold from 8 metres, including:
- 3 metres at 61.27 g/t gold from 10 metres; and
- 9 metres at 9.28 g/t gold from 9 metres, including:
- 2 metres at 33.53 g/t gold from 11 metres.
These results relate to reverse circulation drilling designed to tighten drill spacing on the shallow high-grade part of the emerging Grace prospect to facilitate resource estimation.
Commenting on the results, 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.”
Recent developments
Today’s announcement follows another promising ASX release last week which saw the Rox Resources share price more than double.
The release also related to the drilling program being undertaken at the Grace prospect, with the deepest drilling completed to date returning impressive gold grades. This included 25 metres at 34.79 g/t gold from 143 metres, including 6 metres at 140.7 g/t gold from 150 metres.
With a share price of 7.3 cents at the time of writing, Rox Resource’s market capitalisation currently stands at around $145 million. With today’s rise, the Rox Resources share price has now rocketed 192% since the beginning of last week.
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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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