Rox accelerates Youanmi development ahead of mid-2027 first gold

Youanmi development moves ahead of schedule

Rox Resources Limited (ASX:RXL) has taken another substantial step towards restarting the Youanmi Gold Mine, reporting a 49% quarterly increase in underground lateral development and a growing stockpile of higher-grade ore. The company completed 1,665 metres of lateral development in the September quarter, taking total advance across the mine to 3,795 metres.

Mining produced 20,584 tonnes at 2.75 grams per tonne gold, containing 1,818 ounces, while the run-of-mine stockpile reached 47,955 tonnes at 3.05g/t for about 4,700 ounces. Rox said both mining and stockpiling were ahead of the Definitive Feasibility Study schedule. At United North, preparation for production stoping on the 2356 and 2341 metre levels was complete, with production drilling scheduled to begin in October.

The progress builds on the United North drilling results, which had extended the planned ore drives by about 125 metres along strike. The company said underground drilling completed during the quarter continued to support the 2025 resource model while identifying areas of potential upside, including high-grade plunging shoots.

Plant construction remains tied to mid-2027 target

Construction of the Youanmi processing plant was 39% complete at quarter end. Fabrication of the ball mill and crushers had finished, equipment was either in Perth or on its way, and work on the Albion leach tanks and IsaMill was advancing. Civil works included concrete pours for major plant structures, construction of CIL tank foundations and the start of in-ground services for the power station.

Rox also started construction of the TSF3 tailings facility, with earthworks under way on the starter dam, diversion drain and cut-off trench. The final major project contract, for oxygen supply, had not yet been signed, although negotiations were nearing completion and an early works agreement was in place. Rox continues to target first gold in mid-calendar 2027, a timetable that still depends on construction, commissioning and mine ramp-up proceeding as planned.

The project’s regulatory position is clearer than it was a quarter earlier: the final major approval, the Works Approval, was granted in July. A native title mining agreement with the Badimia Barna Native Title Claim Applicant also covers future project tenements and approvals, alongside heritage, environmental, employment and financial-benefit arrangements.

Resource growth adds optionality beyond the initial mine plan

Rox’s updated Mineral Resource increased 4% to 2.195 million ounces, while Ore Reserves rose 8% to 727,000 ounces after depletion to 30 June 2026. The reserve comprises 4.8 million tonnes at 4.7g/t gold, including 724,000 ounces at Youanmi and 3,000 ounces in ROM and other stockpiles.

The update included a 31% increase in contained gold in the surface Indicated Resource, but it did not include results from the Interceptor program or the recently started underground grade-control drilling. Further drilling at Youanmi Deeps is now targeting resource conversion, additional resource growth and extensions to known mineralisation. Rox has linked this work to an aspiration for production of 150,000 ounces a year, although that ambition is separate from the initial mine plan.

Debt drawdown follows heavy construction cash use

Rox ended September with $59.3 million in cash after a quarterly decrease of $93.4 million. Property, plant and equipment absorbed $65.6 million, while mine development accounted for a further $19.7 million. The cash flow reflects a project in an intensive construction phase rather than an operating mine, but it also makes the timing of the debt package important.

Financial close on the $350 million debt facilities was achieved on 2 October, after the reporting period. Rox then drew $90.2 million under the senior secured project term loan and used $4 million from the bank guarantee facility. The company said $229.8 million remained available under the project debt and cost overrun facilities. The Youanmi debt financial close removed the conditions precedent that had stood between the financing package and construction spending, but future drawdowns will sit alongside the remaining execution work.

The next quarter should provide a more practical test of the schedule: production drilling and stoping at United North, continued decline development, progress on the oxygen contract and construction of the plant and TSF3. Rox also plans pumping tests on four water-supply bores and continued drilling into early 2027. The central question is no longer whether Youanmi has entered construction, but whether the project can convert this strong development momentum into commissioning without losing time or exhausting its funding headroom.