Business & Investment

Is the Rox Resources stock price in restart mode? (ASX: RXL)

Like many of its peers Rox Resources Ltd [ASX:RXL] Stocks enjoyed the stellar execution in the midst of last year’s gold explosion.

However, RXL’s share price fell steadily as investors sought a more sustainable level of gold prices as they returned to the stock market.

RXL Stock Chart

Source: Tradingview

Today, explorer interest seems to be returning to the announcement of a solid recovery from metallurgical testing.

At the time of this writing, Rox Resources’ share price was up 12.50%, trading at 3.6 cents per share.

Obviously: What’s Next for Australia’s Gold Stock Price? learn more.

Is this the end of the orphanage?

There are several different stages to investing in gold stocks.

Stock prices usually fall as speculators seek out and profit from other start-ups before explorers move into the development phase of the project.

That may be the case with RXL.

Today, the company announced the results of a metallurgical test from a joint venture at Grace Discovery in Yuanmi.

Gravity and leaching test work shows excellent total gold recovery in Grace, up to 99.8% for fresh rocks and 98.7% for oxide mineralization.

According to Rox Resources, this result confirms that the new zones of gold mining found in late 2019-2020 are likely to be suitable for traditional gravity and cyanide treatment.

Meaning Extraction costs can be minimized.

Alex Passmore, Managing Director of RXL, commented that he was pleased with the results.

Particularly promising is the relatively high gravity recoverable gold from coarse milling. Youanmi’s gold ore exhibits a variety of metallurgical properties, but it is becoming clear that the low sulfide mineralization activity hosted by granites such as Grace is free milling.

For those unfamiliar with geological jargon, free milling is an essential tool for traditional processing.

Does this mean a return on the RXL stock price?

As mentioned earlier, investments in gold stocks are cyclical.

When speculative investors make a profit and leave, institutional investors raid in the development phase (they have the capital to fund it).

Metallurgical testing is often used in scoping and feasibility studies to understand whether a project is economically viable.

The Rox Resources results suggest that the rocks mined in Grace’s discovery may be feasible, although explorers did not comment on the project’s potential economy.

In terms of stock prices, RXL announced last year that Grace Discovery’s first resource quote is expected in the first quarter of this year.

Drilling will also continue, focusing on two major new goals.

In other words, I was able to see interest returned to the stocks that fell.

Also, the outlook for stocks like RXL may be better than expected as Australia’s gold scene, which is trying to overtake China as the world’s gold capital, is overheating. In her latest report, gold expert Shae Russell analyzes the implications of Australia becoming a new gold “earthquake” for gold and Australian gold stocks. Click here to download the free report..

Best regards,

La Crantiany

for Daily Reckoning Australia

Is the Rox Resources stock price in restart mode? (ASX: RXL) Is the Rox Resources stock price in restart mode? (ASX: RXL)

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