Rox Resources has reported significant progress at its Youanmi Gold Project, including a 36% increase in underground gold resources and on-track completion of its Definitive Feasibility Study, setting the stage for production in Western Australia.
- Completion of dewatering at United North and progress at Youanmi Main pit
- 36% increase in underground indicated gold resource to 1.5 million ounces
- Definitive Feasibility Study (DFS) on track for November 2025 release
- Appointment of Byrnecut Australia as underground mining contractor
- Strong interest in debt financing with key consultants engaged
Project Momentum Builds at Youanmi
Rox Resources Limited (ASX – RXL) has delivered a robust quarterly update for the period ending 30 September 2025, highlighting accelerated progress at its flagship Youanmi Gold Project in Western Australia. The company has completed dewatering of the United North area and is advancing well with the Youanmi Main pit, enabling early access works that significantly reduce execution risks for the planned underground mine declines.
These operational milestones are complemented by a new Mineral Resource Estimate (MRE) that reveals a substantial 36% increase in the underground indicated gold resource, now standing at 1.5 million ounces. This upgrade reinforces Youanmi’s status as one of Australia’s highest-grade undeveloped gold projects, with a total resource of 2.17 million ounces at an average grade of 5.6 grams per tonne.
Definitive Feasibility Study Progress and Contract Awards
The Definitive Feasibility Study (DFS) remains on track for release in November 2025, with key workstreams advancing smoothly. Metallurgical test work has delivered promising results, including strong sulphur recovery and gold extraction rates through flotation and the Albion Process. Process plant design and costing are well advanced, and all major external works contracts have been awarded.
In a strategic move to underpin underground mining operations, Rox has appointed Byrnecut Australia as its underground mining contractor under a four-year agreement. Byrnecut will initially focus on developing the United North exploration decline to facilitate infill drilling and resource extension, before progressing to the Pollard and Youanmi declines post-final investment decision.
Exploration and Regional Survey Enhancements
Alongside development activities, Rox has continued exploration drilling in both brownfields and regional targets, intersecting strong gold mineralisation. A newly completed detailed regional aeromagnetic survey will enhance geological modelling and support the identification of additional gold targets along the Youanmi shear zone, potentially extending the project’s resource base further.
Financial Position and Financing Strategy
Rox Resources ended the quarter with a healthy cash balance of $43.7 million, despite a $6.7 million net cash outflow primarily driven by exploration, development, and equipment acquisition costs. The company is actively progressing a competitive debt financing process, receiving strong interest and credit-endorsed expressions of interest. Key technical, environmental, and legal consultants have been appointed to support this financing, which is targeted to coincide with the DFS completion and enable a timely final investment decision.
Managing Director Phillip Wilding emphasised the company’s momentum, noting that early works and approvals are advancing well, with the main pit dewatering on schedule for early 2026. He highlighted the project’s potential to become a significant contributor to Australia’s gold production landscape, especially amid the current elevated gold price environment.
Bottom Line?
With the DFS imminent and early mining works underway, Rox Resources is poised to transform Youanmi from a high-grade resource into a producing gold mine.
Questions in the middle?
- Will Rox secure debt financing on terms that support a timely final investment decision?
- How will the updated resource estimate influence the mine plan and production targets in the DFS?
- What exploration upside remains along the Youanmi shear zone following the recent aeromagnetic survey?