Byrnecut Appointment Marks Major Step Toward Production at High-Grade Youanmi Gold Project
Rox Resources (ASX: RXL) has taken another significant step toward becoming Western Australia's next gold producer of scale by appointing Byrnecut Australia as the underground mining contractor for its 100%-owned Youanmi Gold Project. This two-part contract will initially focus on developing the United North exploration decline before expanding to full production operations following a positive Final Investment Decision (FID) expected in Q1 2026.
The contract award follows an extensive competitive tender process and represents a key milestone in Rox's pathway to production for the high-grade Youanmi Gold Project, which hosts a global mineral resource of 12.1Mt at 5.6g/t for 2.2 million ounces of gold.
Strategic Two-Phase Development Approach
The contract with Byrnecut is structured in two parts:
Part A ($10.8 million) – Fully funded from existing cash reserves:
- Development of the United North exploration decline and drill platform
- Initial 820m exploration decline development over five months
- First drill platform to be completed by July 2026
- Includes mobilisation and site setup
Part B – To commence upon positive FID (expected Q1 2026):
- Development of the Pollard Decline
- Refurbishment of the Youanmi Decline
- Ongoing development and production activities
- Four-year contract term
"The appointment of Byrnecut as our underground mining contractor is another major milestone for Rox as we steadily advance our pathway to production for the Youanmi Gold Project. Byrnecut is a globally renowned tier one mining contractor, and having this team join us to start development of our project is a testament to the quality and potential of Youanmi." – Phill Wilding, Managing Director & CEO
United North Exploration Decline: De-Risking the Project
The strategic focus on developing the United North exploration decline is designed to de-risk the initial stages of the Youanmi Gold Project. This decline will eventually become the main production decline following FID.
Preparation work has already been completed, including:
- Dewatering at United North
- Initial meshing of the pit wall
- Clearing the pit ramp to access the planned portal
The planned access portal will enable underground drilling to commence, allowing for:
- Tighter spaced drilling for grade control
- Further resource development
- Exploration drilling to expand the current resource base
Definitive Feasibility Study Nearing Completion
With the Definitive Feasibility Study (DFS) due in November 2024, Rox Resources is making substantial progress across multiple workstreams:
Key achievements to date:
- Dewatering advancing, with United North pumped to target level
- Significant increase to underground resource in July's Mineral Resource Estimate
- Major clearing permit obtained
Active work streams with established consultants:
- Processing plant design – Maca Interquip Mintrex
- Metallurgical consulting – MineScope Services
- Metallurgical test work (Albion Process™) – Glencore Technology & Core Resources
- Geotechnical – MineGeoTech
- Hydrology and hydrogeology – AQ2
- Tailings dam design – TailCon Projects
Timeline to First Gold Production
Rox has outlined a clear pathway to production with first gold targeted in Q2 2027:
| Period | Key Milestones |
|---|---|
| Q4 2024 | Definitive Feasibility Study completion |
| Q1 2025 | Continued resource extensional drilling, exploration drilling |
| Q1 2026 | Final Investment Decision (FID) |
| Q2-Q4 2026 | Mill construction and commissioning |
| Q2 2027 | First gold production |
Understanding the Albion Process™: Key to Unlocking Youanmi's Value
The Albion Process™ is a specialised oxidative leaching process being tested for the Youanmi project. This technology is particularly effective for processing refractory gold ores where gold is locked within sulphide minerals and not readily recoverable through conventional cyanidation.
How the Albion Process™ works:
- Fine grinding of sulphide concentrates
- Oxidative leaching under atmospheric conditions
- Conventional cyanidation of the oxidised material
This process has significant advantages for Youanmi's complex mineralogy, potentially unlocking higher gold recoveries from refractory ore zones that have historically proven challenging.
What is a Refractory Gold Ore?
Refractory gold ores are those where gold is encapsulated or locked within sulphide minerals (commonly pyrite and arsenopyrite), making it difficult to extract using standard cyanidation processes. In these ores, the gold particles are physically shielded from contact with cyanide solution, resulting in poor recovery rates using conventional methods.
The Albion Process™ addresses this challenge by breaking down the sulphide minerals through ultra-fine grinding and controlled oxidation, thereby exposing the gold particles for subsequent cyanidation. This process can increase gold recovery rates substantially for refractory ores, turning previously uneconomic resources into viable mining operations.
For the Youanmi project, implementing the Albion Process™ could be a game-changer in terms of overall project economics by significantly improving gold recoveries from historically challenging ore zones.
Investment Thesis: Why Youanmi Stands Out
Youanmi presents a compelling investment case for several reasons:
- High-grade resource: 12.1Mt at 5.6g/t for 2.2Moz gold represents one of the higher-grade undeveloped gold projects in Western Australia
- 100% ownership: Rox holds full ownership, providing maximum leverage to project success
- Clear development pathway: Well-defined timeline from current exploration to production in 2027
- De-risking strategy: The phased approach with the exploration decline provides valuable underground access before full-scale development
- Advanced metallurgical solutions: Implementation of the Albion Process™ to address historical recovery challenges
- Tier-one contractor: Partnership with Byrnecut demonstrates project quality and reduces execution risk
Near-Term Catalysts for Investors
Several key developments are expected in the coming months that could drive significant value for Rox shareholders:
- Definitive Feasibility Study (November 2024)
- Updated mine design and planning inputs based on the recent Mineral Resource Estimate
- Results from near-mine and regional exploration targets
- Continued metallurgical test work results for the Albion Process™
- Progress on project financing with debt advisors
- Mining proposal approvals expected in coming weeks
Why Investors Should Follow Rox Resources
Rox Resources represents a compelling opportunity for gold investors seeking exposure to a near-term development story with significant scale and grade advantages. The company is methodically de-risking the Youanmi Gold Project, with each milestone bringing it closer to its goal of becoming Western Australia's next significant gold producer.
With its high-grade resource base of 2.2 million ounces, the appointment of a tier-one contractor in Byrnecut, and a clear pathway to production, Rox offers investors exposure to a gold development story approaching several major value inflection points. The upcoming Definitive Feasibility Study in November 2024 and potential Final Investment Decision in Q1 2026 represent particularly significant catalysts on the horizon.
For investors seeking exposure to the gold sector through a company with an advanced, high-grade project and clear development strategy, Rox Resources warrants close attention as it advances toward becoming Western Australia's next gold producer of scale and grade.
Ready to Invest in Western Australia's Next Major Gold Producer?
Discover how Rox Resources is advancing the high-grade Youanmi Gold Project towards production with its 2.2 million ounce resource, tier-one mining contractor and clear development timeline. For comprehensive investor information and to stay updated on upcoming catalysts including the Definitive Feasibility Study due November 2024, visit the Rox Resources website today.
