Youanmi Gold Project Expands to 2.1 Million Ounces with High-Grade Underground Resource
Rox Resources (ASX: RXL) has significantly enhanced its position as an emerging gold producer, announcing a substantial upgrade to its Youanmi Gold Project's mineral resource estimate. The company's underground resource has grown to 2.1 million ounces at an impressive grade of 6.0 g/t gold, representing one of the highest-grade undeveloped gold resources in Australia.
This latest resource update demonstrates exceptional growth in the indicated category, with 7.2 million tonnes at 6.4 g/t for 1.5 million ounces now classified as indicated resources, providing increased confidence for the upcoming Definitive Feasibility Study (DFS).
The total Youanmi Gold Project now stands at 12.1 million tonnes at 5.6 g/t for 2.17 million ounces, positioning the project as a significant high-grade gold development opportunity in Western Australia's renowned Yilgarn Craton.
"This resource upgrade marks a pivotal moment for Rox Resources as we advance Youanmi toward production. The significant increase in indicated resources provides a solid foundation for our DFS and strengthens our development pathway." – Phillip Wilding, Managing Director & CEO
Pre-Feasibility Results Demonstrate Robust Economics
The July 2024 Pre-Feasibility Study (PFS) highlighted compelling economics for the Youanmi Gold Project:
| PFS Highlights | Base Case (A$3,100/oz) | Current Gold Price (A$3,700/oz) |
|---|---|---|
| Pre-tax NPV (8%) | A$486 million | A$797 million |
| Pre-tax IRR | 42% | 62% |
| Post-tax NPV (8%) | A$322 million | A$541 million |
| Post-tax IRR | 33% | 49% |
| Life of Mine | 7.7 years | 7.7 years |
| Annual Production | >100,000 oz | >100,000 oz |
| All-In Sustaining Cost | A$1,676/oz | A$1,676/oz |
| Pre-Production Capital | A$245 million | A$245 million |
The production profile features 786,000 ounces over a 7.7-year mine life, with an average annual production exceeding 100,000 ounces. The project demonstrates low costs with an AISC of A$1,676/oz, generating an estimated A$1.3 billion in free cash flow at the current gold price of approximately A$3,700/oz.
With the new resource upgrade, there's potential to extend mine life and increase the production rate beyond the current 750,000 tonnes per annum assumption.
Pathway to Production Clearly Defined
Rox has made significant progress on its development timeline, with several key milestones already achieved:
- Dewatering operations underway at both United North and Main Pits
- Metallurgical testwork advancing with completed comminution and flotation works
- High gold recovery confirmed with ~91.6% recovery to concentrate and ~98.3% sulphur recovery
- DFS progression with multiple workstreams underway
- Exploration declines planned for United North (Q4 2025) and Pollard (Q1 2026)
The company is targeting a final investment decision in mid-2026, with first gold production anticipated in mid-2027.
Understanding the Albion Process: A Key to Youanmi's Success
The Youanmi processing flowsheet incorporates the Albion Process™, a specialised oxidation technology that is key to achieving the project's high gold recoveries of 92.6%.
What is the Albion Process?
The Albion Process is an atmospheric leaching technology that combines ultrafine grinding with oxidative leaching to treat refractory gold ores. At Youanmi, it will be used to process flotation concentrate containing gold associated with sulphide minerals (primarily pyrite and arsenopyrite).
Why It Matters to Investors
The Albion Process offers several significant advantages over alternative oxidation methods:
- Lower capital costs compared to pressure oxidation or roasting
- Simplified operations without the need for specialised operators or metallurgists
- Rapid commissioning and proven technology with operating plants globally
- Flexibility to handle variable sulphur grades and throughputs
For Youanmi, only approximately 15% of the total ore will require processing through the Albion circuit, with up to 60% of the gold being free-milling. This contributes to the project's attractive cost structure and robust economics.
Strategic Position in a Premier Gold District
The Youanmi Gold Project is strategically located in Western Australia's central Youanmi Greenstone Belt, part of the prolific Yilgarn Craton. The project has a strong production history, having previously produced 667,000 ounces at 5.42 g/t from both open pit and underground operations.
The property is surrounded by million-ounce deposits and major gold producers, positioning Rox in one of Australia's premier gold provinces. With existing infrastructure including evaporation ponds and access points, the project benefits from a head start in development.
Recent regional exploration has also identified additional promising targets, including the Currans Find Gold Project located 20km south of Youanmi, where high-grade intercepts include:
- 3m @ 32.58g/t Au
- 6m @ 5.22g/t Au
- 12m @ 4.44g/t Au
Investment Thesis: Why Rox Resources Stands Out
Rox Resources presents a compelling investment case based on several key factors:
1. High-Grade Resource in a Tier-1 Jurisdiction
With an underground resource grading 6.0 g/t gold, Youanmi ranks among Australia's highest-grade undeveloped gold projects. The high-grade nature supports strong economics even in lower gold price environments.
2. Robust Financial Position
Rox maintains a strong cash position of A$50.5 million (as of June 30, 2025), providing ample funding for planned development activities including the DFS and early works. This financial strength reduces the need for near-term dilutive capital raises.
3. Clear Path to Production
With dewatering underway and a defined development pathway, Rox has de-risked several aspects of the project. The company has a clear timeline to production with multiple value-enhancing catalysts over the next 18-24 months.
4. Experienced Leadership
The Rox management team and board bring proven experience in developing Australian gold mines, with a track record of delivering projects on time and budget.
5. Exploration Upside
The mineral resource remains open down-dip and along strike, with ongoing exploration programs targeting resource growth. Regional targets like Currans Find provide additional growth opportunities.
Why Investors Should Follow Rox Resources
Rox Resources represents a compelling opportunity for investors seeking exposure to gold with a clear path to near-term production. The company's flagship Youanmi Gold Project combines three critical elements that set it apart from peers:
- Grade – With underground resources grading 6.0 g/t gold, Youanmi ranks among Australia's highest-grade undeveloped gold projects
- Margin – Low AISC of A$1,676/oz provides substantial operating margins at current gold prices
- Upside – Significant exploration potential both at depth and regionally
With major catalysts approaching, including DFS completion in late 2025, early underground access, and a final investment decision targeted for mid-2026, Rox offers investors multiple near-term value drivers. The company's strong cash position of A$50.5 million provides financial flexibility through this development phase.
As the gold sector gains momentum amid global economic uncertainty, Rox Resources is strategically positioned to capitalise on strong gold prices with its high-grade, high-margin project in one of the world's premier mining jurisdictions.
Want to Invest in One of Australia's Highest-Grade Gold Projects?
Discover how Rox Resources' Youanmi Gold Project, with its impressive 2.1 million ounces at 6.0 g/t gold, represents a compelling investment opportunity in the Australian gold sector. With robust economics, clear production timelines, and significant exploration upside, now is the time to learn more about this emerging gold producer. Visit Rox Resources' website for comprehensive project details and to stay updated on upcoming development milestones as they advance toward production.
