Youanmi Gold Project Faces Critical Debt Approval Ahead of Construction Start

Youanmi Project Advances with Strong Feasibility Outcomes

Rox Resources Limited (ASX – RXL) has delivered a transformational quarter, marked by the completion of a Definitive Feasibility Study (DFS) for its Youanmi Gold Project in Western Australia. The DFS confirms the project’s technical and economic viability, highlighting a low-cost, high-margin operation with a 7-year mine life and peak annual production of 176,000 ounces of gold. The study estimates a pre-production capital cost of A$383 million and projects a post-tax net present value (NPV8) of A$965 million at a gold price of A$5,200 per ounce, underscoring the project's strong financial fundamentals.

Key operational milestones include an updated Probable Ore Reserve of 4.4 million tonnes at 4.8 grams per tonne, delivering 674,000 ounces of contained gold, and an underground production target increased to 5.7 million tonnes at 4.9 grams per tonne for 900,000 ounces. The project’s low all-in sustaining cost (AISC) of A$1,978 per ounce positions it competitively within the gold sector.

Mining Operations and Infrastructure Development

Mining activities at the United North deposit have commenced, with Byrnecut Australia successfully firing the first decline cut in November 2025. Operations have ramped up to 24-hour mining shifts, achieving approximately 287 metres of advance during the quarter. Dewatering of the Main pit is progressing on schedule, with around 75% completion, facilitating access to underground workings.

Infrastructure development is advancing in parallel, with the expansion of the accommodation camp by 60 high-spec rooms completed and plans to increase capacity to approximately 350 rooms by mid-2026. The site office and mining offices are ready for occupation, supporting operational scale-up.

Robust Funding Package Secures Project Development

Rox has successfully raised A$218 million through a two-tranche institutional placement and an upsized Share Purchase Plan (SPP) that attracted A$18 million, fully funding the equity portion of the Youanmi project development. This capital will cover processing plant construction, underground development, resource drilling, and site infrastructure.

Additionally, the company has purchased gold put options covering approximately 50% of forecast production in FY2028 at a strike price of A$5,700 per ounce, providing a hedge against downside price risk while retaining upside exposure.

Updated indicative debt commitments from leading Australian and international banks have been received, with final credit-approved debt expected in the first quarter of 2026. This financing milestone is critical for Rox to make a Final Investment Decision (FID) and commence full-scale construction.

Strategic Appointments and Exploration Upside

To support the project’s development, Rox appointed Alan Rule as a Non-Executive Director and Jonathan Streeter as General Manager – Geology. These appointments bring extensive operational and technical expertise, strengthening the company’s leadership as it transitions to production.

Exploration remains a key focus, with a comprehensive airborne magnetic survey completed across Rox’s tenement package. This enhanced geological data will guide future drilling programs aimed at extending the mine life and identifying new targets within the Youanmi greenstone belt.

Looking Ahead

Rox Resources is poised for a pivotal 2026, with regulatory approvals for processing plant and tailings dam construction expected soon, alongside finalisation of project financing. The company targets first gold production by mid-2027, marking its emergence as a new gold producer in Western Australia. Investors will be watching closely as Rox navigates the transition from development to operational phase, with exploration upside offering potential for further value creation.