Rox Resources says construction of its Youanmi processing plant has reached 39%, while underground development advances towards production drilling at United North. Financial close and a $90.2 million debt drawdown have lifted reported cash to $149.2 million, with first gold still targeted for mid-2027.
- Youanmi processing plant reaches 39% completion
- $90.2 million project debt drawn after financial close
- Cash rises to $149.2 million after drawdown
- 566 metres of underground development completed in September
- United North production drilling due to start in October
Youanmi plant reaches 39% completion
Rox Resources Limited (ASX:RXL) has moved another step into the execution phase at its Youanmi Gold Mine, reporting that construction of the 1.0 million tonnes per annum processing plant is now 39% complete. Civil, structural and mechanical work is advancing across the site, with CIL tanks, crushing infrastructure, the ball mill foundation, the workshop and warehouse all progressing.
Several pieces of critical equipment are no longer merely on order. Rox says the ball mill, initial structural steel shipment and first IsaMill components are in transit, while pre-shipment inspection has been completed for Albion tank roof sections, platforms and interconnecting launders. Power station earthworks have also started, and construction of the tailings storage facility has moved into foundation preparation, drainage, seepage-control and embankment works.
Underground work advances towards production drilling
Mining activity is providing a second measure of progress. Underground development totalled 566 metres in September, which Rox says continued to outperform planned development rates. At United North, ore drives on the first two levels are complete and production drilling is scheduled to begin in mid-October, following further work on ladderways, ventilation and pumping infrastructure.
The update builds on Rox’s United North stope planning, which followed drilling that extended the mine plan by about 125 metres. At Youanmi Main, the company is establishing initial mining levels while upgrading dewatering infrastructure through October and November. A second underground borehole is planned for late October, with pumping equipment expected to be installed in November; Rox says it is expected to approximately double current dewatering rates from the historic workings once operational.
Debt drawdown strengthens the funding position
Rox’s funding position has changed materially since the end of September. The company held $59.0 million in cash at 30 September, down $93.7 million from 30 June as construction and mining spending increased. After financial close and a first drawdown of $90.2 million under its project term loan on 2 October, reported cash rose to $149.2 million.
The debt package totals $350 million, comprising a $300 million project term loan, a $20 million cost overrun facility and a $30 million bank guarantee facility. The Youanmi debt close had previously been reported as removing conditions that stood between the funding package and construction spending. The cash figure is a post-drawdown position rather than a measure of equity cash, and Rox has not provided an updated capital-cost estimate or operating forecast in this construction report.
Mid-2027 first gold target remains in place
Rox says its indicative pathway to production remains on track, with the accommodation camp now fully commissioned and ore stockpiling commenced. The remaining near-term work includes securing the final major oxygen-supply contract, continuing development across the declines and building the ore stockpile ahead of production.
The company continues to describe 150,000 ounces per year as an aspiration for Youanmi in the years ahead, rather than a revised production forecast. For now, the more immediate test is whether equipment delivery, tailings construction, dewatering, underground stoping and plant commissioning can continue to advance without disrupting the mid-2027 first-gold target.
Bottom Line?
The project has reached a more tangible construction and funding stage, but the next proof points are production drilling, dewatering, equipment installation and the quarterly cash-spend detail.
Questions in the middle?
- Will the 39% processing-plant completion rate translate into commissioning progress at the planned pace?
- Can United North production drilling and additional dewatering support the targeted mining sequence?
- What cash outflow and remaining capital requirements will Rox report as construction accelerates?