Venus, Rox release scoping study for Mt Magnet gold project

Joint venture partners Venus Metals Corporation and Rox Resources have released a scoping study for their Youanmi gold project near Mt Magnet in WA which includes a projected production of 71,000 gold ounces per year.

The study predicts the site will be capable of producing about 569,000 gold ounces over an eight-year mine life at an average head grade of 5 grams per tonne gold.

Youanmi currently holds a project-wide resource of 27.9 million tonnes at 3.57 g/t for 3.2 million ounces of contained gold according to its latest upgrade in April this year.

The joint venture partners have outlined a capital cost for a 480,000 tonne-per-annum processing plant and other site infrastructure at around $99 million with working capital and other costs at around $34 million.

The study shows a cumulative EBITDA of around $577 million over the predicted eight-year lifespan of the project with a net present value of $303 million and an internal rate of return clocking in at an impressive 45 per cent. The companies also expect a payback of around three years once the project hits its production target.

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

Recent drilling results at the project include 8m at 5.1 g/t gold from 212m including 4m at 9.45 g/t from 212m in addition to 4m at 6.03 g/t from 140m in one hole. A second hole recorded results going 0.78m at 32.98 g/t gold from 256.3m.

The JV partners say the prospect has strong potential for contributing additional ounces to the overall project resource and highlights the potential for new high-grade lodes in previously untested areas.

Both companies believe the latest drilling results confirm at least 160m of plunge continuity from the recently discovered Midway lode. Previously released high-grade intercepts from Midway include one hole going 4m at 45.5 g/t from 341m including 1.33m at 129.3 g/t from 341.75m with further drilling planned.

Youanmi historically produced 667,000 ounces of gold at 5.47 g/t from several open pits and underground mines until its closure in the 1990s.

A pre-feasibility study for the project is expected to be released next year with additional infill drilling to further define the resource throughout 2023.

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