The Rox Resources Limited (ASX: RXL) share price was a standout performer on the ASX today after the company announced a high-grade gold hit at one its mines.
This announcement saw the Rox Resources share price more than double, with shares closing 108.33% higher at 5 cents. This jump takes the company's current market capitalisation to around $91 million.
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.
What did Rox Resources announce?
This morning, Rox reported further results from the drilling program being undertaken at the Grace prospect at Youanmi. The current drill program commenced in late May and assay results have now started to flow in.
Rox stated that deepest drilling completed at Grace has intersected impressive gold grades, including:
- 25 metres at 34.79 grams per tonne (g/t) gold from 143 metres, including:
- 6 metres at 140.7 g/t gold from 150 metres.
According to the company, this was the deepest intercept to date, extending mineralisation both along strike and down-dip.
Commenting on the drilling results, managing director Alex Passmore said:
"These very impressive results are the best we've seen and significantly, are from the deepest drilling at Grace to date. The exploration model we are applying at Grace is continuing to work well, delivering what is shaping up to be a substantial high-grade deposit. We look forward to updating the market on further assays as they become available."
Recent developments
Today's announcement follows Rox's share placement and share purchase plan (SPP) recently undertaken to raise $12.7 million. In late May, the company completed a $8.74 million institutional placement at an offer price of 2.4 cents per share. And yesterday evening, Rox announced it has closed its SPP over-subscribed, accepting a total of $4 million.
The funds will be used to underpin the company's growth plans at the Youanmi Gold Mine and Fisher East Nickel Project. Additionally, Rox has used some of the capital to increase its interest in the Youanmi joint venture from 50% to 70%. As announced on 11 June, the company exercised its option to acquire an additional 20% interest in the joint venture for $2 million cash and $1 million in shares.
The company's joint venture partner for Youanmi, Venus Metals Corporation Limited (ASX: VMC), also saw its shares rise today, notching a 38.24% gain.
