Rox Resources has secured a fixed-cost EPC contract for its Youanmi processing plant while accelerating underground mining fronts and stockpile development, keeping first gold pour on track for mid-2027.
- Fixed-cost EPC contract executed with Interquip
- Stripping commenced at historic Youanmi Decline
- Mining advance at United North exceeds DFS rates
- Bulk earthworks for mill near completion
- Underground diamond drilling underway for resource growth
Fixed-Cost EPC Contract Secures Processing Plant Budget
Rox Resources (ASX:RXL) has taken a major step in de-risking its Youanmi Gold Project by signing a fixed-cost Engineering, Procurement, and Construction (EPC) contract with Interquip for the processing plant. This contract locks in pricing consistent with the Definitive Feasibility Study (DFS), providing strong certainty around pre-production expenditure.
Interquip has already mobilised on site, with bulk earthworks nearing completion and civil construction set to begin imminently. The fixed pricing aligns with Rox’s DFS estimates and supports the company’s target of first gold production by mid-2027.
Multiple Mining Fronts Advance Ahead of Schedule
Mining activities at Youanmi are gathering pace, with stripping commenced at the historic Youanmi Decline within Main Pit, which was mined in the 1990s and is now being refurbished to accommodate modern equipment. This decline provides an efficient, cost-effective access to high-grade ore lodes alongside the United North mining front, which itself has surpassed DFS advance rates, setting a new record of 343 metres of development in May using a single jumbo.
Access preparation is also underway at the Pollard Decline, the third planned portal for the operation. Pollard is a critical future ore source, with face support work progressing and diamond drilling platforms being established to explore resource extensions beneath the current mine plan.
Resource Conversion and Extension Drilling Underway
Underground diamond drilling has commenced to support resource conversion and mine life extension. Rox has mobilised its first underground drill rig at United North, aiming to complete infill drilling to maintain a 12-month buffer ahead of mining by mid-2027. Growth drilling from both surface and underground locations is planned for the second half of the year, targeting resource expansion beyond the DFS model.
Ore drive development continues, with high-grade stockpiles being built as part of the mining advance. Initial assays confirm mineralisation consistent with the DFS mineral resource estimate, though many results remain pending.
Funding and Approvals Support On-Budget Development
Rox’s recent $350 million debt package, combined with a $218 million equity raise completed in late 2025, places the company in a strong financial position to deliver Youanmi on budget. The Board approved the Final Investment Decision in March 2026, coinciding with key regulatory approvals including the Mining Development and Closure Proposal (MDCP) for the processing plant and tailings facility.
Remaining major supply contracts are in the final stages of approval, with pricing consistent with DFS assumptions. Dewatering of the Main Pit is complete, and underground dewatering has commenced, enabling uninterrupted mining development.
Pathway to Production Remains on Track
The company’s timeline targets first gold pour in mid-2027, supported by coordinated progress across mining fronts, processing plant construction, and resource drilling. Rox is also advancing regional exploration, including reviewing recent airborne magnetic surveys to identify near-mine and broader targets.
While Rox continues to finalise contracts and ramp up development, the operational momentum and financial certainty position Youanmi as a promising high-grade gold producer in Western Australia’s competitive landscape.
Bottom Line?
Rox Resources’ fixed-cost EPC contract and strong underground progress bolster confidence in Youanmi’s on-budget delivery and production timeline.
Questions in the middle?
- Will upcoming drilling results substantively extend Youanmi’s mine life beyond the DFS plan?
- How will Rox manage operational risks that could impact pre-production expenditure despite fixed contracts?
- What are the timelines for finalising the remaining major supply contracts and regulatory approvals?