Can Rox Resources Deliver 117,000 Ounces Annually from Youanmi Gold Project?
Rox Resources confirms the technical and economic viability of its Youanmi Gold Project, targeting 117,000 ounces of gold annually over seven years at a low cost. The Definitive Feasibility Study outlines robust financial returns and a clear path to production by mid-2027.
- Average annual production of 117,000 ounces over 7 years
- Low all-in sustaining cost (AISC) of A$1,978 per ounce
- Pre-production capital expenditure of A$383 million
- Pre-tax NPV8 of A$1.43 billion and IRR of 69% at A$5,200/oz gold price
- First gold production scheduled for mid-2027 with construction starting Q2 2026
Youanmi Project Overview
Rox Resources Limited has delivered a comprehensive Definitive Feasibility Study (DFS) for its 100%-owned Youanmi Gold Project in Western Australia, confirming the project’s technical and economic viability. The study is based on an updated Mineral Resource and Ore Reserve estimate, underpinning a production target of 900,000 ounces of contained gold from underground mining.
The project is designed to produce an average of 117,000 ounces of gold per annum over an initial seven-year mine life, with peak production reaching 176,000 ounces in year six. This output is supported by a low all-in sustaining cost (AISC) of A$1,978 per ounce, positioning Youanmi as a high-margin operation in the current gold market.
Financial Strength and Capital Requirements
The DFS estimates a pre-production capital cost of A$383 million, covering the processing plant, underground development, and associated infrastructure. Sustaining capital over the life of mine is forecast at A$172 million. Rox anticipates a short payback period of 1.9 years post-tax at a gold price of A$5,200 per ounce.
Financial metrics are compelling, with a pre-tax net present value (NPV8) of A$1.43 billion and an internal rate of return (IRR) of 69% at the base case gold price. At the current spot price of A$6,100 per ounce, these figures improve to an NPV8 of A$1.92 billion and IRR of 86%, highlighting significant upside potential.
Pathway to Production and Project Execution
Rox plans to commence mill construction in early Q2 2026, targeting first gold pour by mid-2027. Early works, including camp construction and exploration decline development at United North, are already underway. The company has secured key environmental and mining approvals, including a Native Vegetation Clearing Permit and Mining Development and Closure Proposal, which support the project timeline.
Financing discussions are progressing, with Rox engaging BurnVoir Corporate Finance to arrange debt funding. The company expects a funding mix of approximately 40% equity and 60% debt, supported by strong credit interest from major banks.
Technical Highlights and Growth Opportunities
The DFS incorporates a detailed mine design employing longhole stoping methods suitable for the deposit’s geometry. Metallurgical test work confirms the ore’s amenability to the Albion Process™, achieving overall gold recoveries of approximately 91%. The processing plant is designed for a 1 million tonnes per annum throughput, with a flowsheet optimized for flotation, ultrafine grinding, and neutral Albion leaching.
Rox identifies multiple growth opportunities, including resource conversion drilling to upgrade inferred resources to indicated status, exploration of near-mine extensions, and regional targets along the Youanmi Shear Zone. These initiatives could extend mine life and increase production beyond the current plan.
Environmental and Social Considerations
Environmental baseline studies indicate the project area is largely disturbed with no threatened flora recorded. Waste rock and tailings are classified as non-acid forming, reducing environmental risks. Rox is actively engaging with the Badimia Barna Native Title Claim Group and aims to negotiate agreements beneficial to all parties. The company also plans to implement a hybrid power station incorporating renewable energy to reduce greenhouse gas emissions.
Bottom Line?
With a robust DFS in hand, Rox Resources is poised to advance Youanmi towards production, but financing and resource conversion remain critical next steps.
Questions in the middle?
- How will Rox manage the 20% inferred resources in the production target to mitigate geological risk?
- What are the timelines and potential impacts of ongoing native title negotiations on project development?
- How might pending metallurgical variability test results affect projected gold recoveries and processing costs?