Rox’s Youanmi Project Faces Key DFS and Resource Conversion Challenges Ahead
Rox Resources has advanced its Youanmi Gold Project with a $27 million capital raise and a major drilling campaign, positioning the company for production by late 2025.
- Completed 11,000m resource definition drilling with all results received
- Commenced 35,000m step-up drilling campaign ahead of schedule
- Raised approximately $27 million through placement and share purchase plan
- Definitive Feasibility Study (DFS) well underway targeting late 2025 completion
- Key executive appointments strengthen management team
Youanmi Gold Project Progress
Rox Resources (ASX: RXL) has reported significant progress in advancing its flagship Youanmi Gold Project in Western Australia during the December 2024 quarter. The company completed an 11,000-metre resource definition drilling program, receiving all assay results that reinforce the continuity and high-grade nature of mineralisation at key prospects such as Pollard, United North, and Youanmi Main.
Building on this momentum, Rox has commenced a substantial 35,000-metre step-up drilling campaign ahead of schedule. This program aims to convert inferred resources to indicated classification and grow the resource base beyond the 103,000 ounces per annum production target outlined in the recent Pre-Feasibility Study (PFS). The drilling is focused on the main Youanmi gold-mineralised structural trend, where geological and metallurgical characteristics are well understood, supporting optimisation efforts within the ongoing Definitive Feasibility Study (DFS).
Definitive Feasibility Study and Pathway to Production
The DFS is progressing steadily, with critical metallurgical test work underway through partnerships with ALS Metallurgy and Glencore Technology/Core Resources. These tests include comminution, flotation, and Albion process optimisation, essential for finalising plant design and costings. Rox has also advanced early site works, including preparations for dewatering activities and camp expansions to support increased workforce requirements.
The company has outlined an indicative Pathway to Production, highlighting key milestones such as environmental approvals, tailings storage facility design, and potential early underground access mining. The DFS is on track for completion in late calendar year 2025, setting the stage for a potential return to production at Youanmi.
Strong Capital Position and Management Enhancements
Rox Resources successfully raised approximately $27 million (before costs) through a two-tranche placement and a $1 million Share Purchase Plan (SPP), demonstrating robust investor support. Tranche 1 and the SPP were completed during the quarter, with Tranche 2 approved at a General Meeting in January 2025. This funding positions Rox well to deliver the DFS and advance the Youanmi Project towards production.
In parallel with operational progress, Rox strengthened its leadership team with the appointment of Phillip Wilding as Chief Executive Officer, Andrew Shaw-Stuart as Exploration Manager, and Greg Hoskins as Chief Financial Officer (announced post-quarter). These appointments bring extensive experience in mine development, exploration, and corporate finance, underpinning Rox’s strategic ambitions.
Exploration Beyond Youanmi
Beyond Youanmi, Rox continued exploration activities at the Mt Fisher - Mt Eureka Project in the Northern Goldfields, drilling targets for gold, platinum group elements, and nickel. Assay results from this program are pending, with the company exploring opportunities to monetise this asset.
Financial Overview
As of 31 December 2024, Rox held a cash balance of $12.5 million, excluding the $13 million from the second tranche placement. The company’s cash flow reflected capital raising proceeds offset by exploration and evaluation expenditures, administration costs, and stamp duty payments related to the Youanmi acquisition. Payments to related parties included director fees and a termination payment to the previous Managing Director.
With a clear funding runway and a well-defined development plan, Rox Resources is poised to unlock value from its extensive gold assets in Western Australia.
Bottom Line?
Rox Resources is well-capitalised and advancing rapidly towards production, but upcoming drilling results and DFS milestones will be critical to validate its growth trajectory.
Questions in the middle?
- Will the ongoing step-up drilling campaign significantly increase indicated resources beyond the 103kozpa target?
- How will metallurgical test results influence the final plant design and project economics in the DFS?
- What are the timelines and risks associated with environmental approvals and early dewatering works?