Rox Resources has released a Definitive Feasibility Study for its Youanmi Gold Project, revealing a high-grade reserve and strong financial metrics underpinning a planned 7-year mine life with significant growth potential.
- Probable Ore Reserve of 4.4Mt at 4.8 g/t Au for 674koz
- Mine plan targets 900koz gold at 4.9 g/t over initial 7 years
- Pre-tax NPV of A$1.4 billion and IRR of 69% at A$5,200/oz gold price
- Low all-in sustaining cost of A$1,978/oz and pre-production capex of A$383 million
- Early works underway with final investment decision expected in Q1 2026
High-Grade Gold Project Positioned for Growth
Rox Resources (ASX – RXL) has delivered a comprehensive Definitive Feasibility Study (DFS) for its flagship Youanmi Gold Project in Western Australia, confirming a robust high-grade resource base and compelling economics. Situated within the prolific Youanmi Greenstone Belt, the project is poised to produce an average of approximately 117,000 ounces of gold annually over an initial seven-year mine life, with significant upside potential through ongoing exploration.
The DFS outlines a Probable Ore Reserve of 4.4 million tonnes grading 4.8 grams per tonne gold, equating to 674,000 ounces. The mine plan targets 900,000 ounces at a slightly higher grade of 4.9 g/t Au, supported by a Mineral Resource estimate of 12.1 million tonnes at 5.6 g/t Au for 2.17 million ounces. These figures underscore the project's high-grade nature, a key factor in its attractive financial profile.
Strong Financial Metrics and Low Operating Costs
Financially, the project demonstrates resilience and profitability. At a base case gold price of A$5,200 per ounce, the DFS forecasts a pre-tax net present value (NPV) of A$1.4 billion and an internal rate of return (IRR) of 69%. Post-tax, these metrics remain robust with an NPV of A$1.0 billion and IRR of 55%. The project’s free cash flow is estimated at approximately A$2.3 billion pre-tax, rising to around A$3.0 billion at current spot gold prices near A$6,100 per ounce.
Operating costs are notably low, with an all-in sustaining cost (AISC) of A$1,978 per ounce, positioning Youanmi competitively within the gold sector. Pre-production capital expenditure is estimated at A$383 million, reflecting a well-defined and capital-efficient development plan. The plant is designed for a throughput of 1 million tonnes per annum, with metallurgical recoveries averaging 90.8%, further enhancing project economics.
Advancing Towards Production
Early works are well advanced, including dewatering of key pits, commencement of underground decline development, and camp construction. Byrnecut Australia has been mobilised to site, and major regulatory approvals for underground mining and environmental permits have been secured. The company plans to progress detailed engineering and order long-lead mill components imminently.
A final investment decision (FID) is anticipated in the first quarter of 2026, supported by ongoing debt financing discussions expected to culminate in binding term sheets. This milestone will pave the way for full-scale construction and commissioning, targeting first gold production in early 2027.
Exploration Upside and Future Growth
Beyond the initial mine plan, Rox Resources highlights significant exploration potential along the Youanmi Shear Zone, with over 60 kilometres of strike largely underexplored outside existing mine areas. Recent drilling has intersected high-grade gold mineralisation near the Bunker and Currans areas, suggesting opportunities to extend mine life and increase production rates. Planned drilling campaigns in early 2026 aim to convert inferred resources to indicated status and unlock additional ounces.
The company’s experienced management team, led by Managing Director Phillip Wilding, is focused on delivering sustainable value through disciplined development and exploration. The DFS results provide a strong platform for Rox to re-rate as it advances through permitting, funding, and construction phases.
Bottom Line?
With a high-grade resource, strong economics, and clear pathway to production, Rox Resources’ Youanmi project is set to become a significant gold producer; investors will watch closely as drilling and financing milestones unfold.
Questions in the middle?
- How will upcoming drilling results impact the mine life and production profile?
- What are the key risks to achieving the projected capital and operating costs?
- When can investors expect binding debt financing agreements and final investment decision?