High-Grade Youanmi Gold Project Advances Towards Production

Strong Fundamentals Drive Youanmi Gold Project Forward

Rox Resources (ASX: RXL) has solidified its position as one of Australia's most promising emerging gold producers with the release of a significant Mineral Resource Estimate update for its flagship Youanmi Gold Project. The company has increased its underground resource to an impressive 2.1 million ounces, part of a total resource of 12.1Mt at 5.6 g/t gold for 2,170,000 ounces.

This high-grade resource, combined with a robust production pathway and strong cash position of $50.5 million, positions Rox to capitalise on Australia's premier gold province while many competitors face challenging market conditions.

"Our focus on grade, margin and exploration upside is delivering exceptional results at Youanmi. With dewatering activities underway and early underground access planned for late 2025, we're progressing rapidly toward becoming Australia's next significant gold producer." – Phillip Wilding, Managing Director and CEO

Resource Growth Underpins Development Momentum

The newly released Mineral Resource Estimate shows substantial growth in indicated resources, with the underground component now standing at 7.2Mt at 6.4 g/t for 1,499,000 ounces in the indicated category. This represents a significant increase in confidence, with approximately 71% of the production target now underpinned by indicated resources.

Key highlights from the Pre-Feasibility Study completed in July 2024 include:

• Production of >100,000 ounces per annum over a 7.7-year mine life
• Low All-In Sustaining Cost (AISC) of $1,676 per ounce
• Free cash flow of approximately $1.3 billion at a gold price of $3,700/oz
• NPV8 of $486 million and IRR of 42% (pre-tax) at base case $3,100/oz
• Potential for significant upside with NPV8 reaching $797 million at $3,700/oz

The project's robust economics are supported by its high-grade nature, with the updated resource confirming an average grade of 5.6 g/t gold across the entire resource and 6.0 g/t gold for the underground component.

Dewatering and Early Works: Fast-Tracking Underground Access

Rox has made significant progress on its pathway to production, with dewatering activities already underway at the United North and Main Pits. This early works programme represents a crucial step toward underground access, with the United North exploration decline expected to commence in early Q4 2025, followed by the Pollard exploration decline in Q1 2026.

The company is leveraging existing infrastructure, including high-volume evaporation ponds and pits that are fully permitted, to expedite the dewatering process and maintain its development timeline.

Understanding the Albion Process: A Key to Youanmi's Success

The Youanmi Gold Project utilises the Albion Process™, a specialised oxidation technology that offers significant advantages for processing refractory gold ores. This technology is particularly well-suited to Youanmi's mineralisation, where gold is associated with pyrite and arsenopyrite.

What is the Albion Process?

The Albion Process is a combination of ultrafine grinding and controlled oxidation that liberates gold from sulphide minerals, making it accessible for conventional cyanide leaching. At Youanmi, the process involves:

1. Conventional crushing and grinding
2. Bulk sulphide flotation, recovering approximately 98.3% of sulphur and 91.6% of gold to concentrate
3. Ultrafine grinding of the concentrate
4. Oxidation of the ground concentrate
5. Conventional CIL (Carbon-in-Leach) processing of both the oxidised concentrate and flotation tails

This approach offers several advantages:

• Lower capital costs compared to alternative oxidation methods
• Simpler operation without requiring specialist metallurgists
• Flexibility to handle variable sulphur grades and throughputs
• Overall gold recovery of 92.6%

The metallurgical testwork for the Definitive Feasibility Study is well advanced, with comminution and flotation works completed and Albion Process testing currently underway at Core Resources laboratory.

Investment Thesis: Multiple Catalysts Ahead

Rox Resources presents a compelling investment case with several near-term catalysts that could drive significant value creation:

1. Resource Growth Potential: The Youanmi resource remains open down dip and along strike, with recent drilling continuing to intercept high-grade mineralisation beyond the current resource boundaries.

2. Definitive Feasibility Study: The completion of the DFS in late 2025 will provide increased confidence in project economics and is expected to incorporate the expanded resource base.

3. Strategic Timing: With a strong cash position of $50.5 million, Rox is well-positioned to advance Youanmi toward production during a period of high gold prices and when many competitors face funding challenges.

4. Experienced Leadership: The management team and board bring proven experience in developing Australian gold mines, with a clear vision to deliver sustainable and superior value.

5. Regional Exploration Upside: Beyond the main Youanmi resource, Rox continues to advance promising regional targets such as the Currans Find Gold Project, where recent drilling has returned significant high-grade intercepts including 6m @ 5.22g/t Au and 2m @ 10.80g/t Au.

Why Investors Should Follow Rox Resources

Rox Resources stands out among its peers due to its combination of high-grade resources, strong cash position, and clear pathway to production. With a market capitalisation of $246 million against a NPV8 of $486 million (pre-tax at $3,100/oz gold), the company offers potential for significant value re-rating as it derisks the Youanmi Gold Project.

The company's strategic focus on grade, margin, and exploration upside provides resilience against potential gold price volatility, while its counter-cyclical development timing could allow Rox to benefit from lower construction costs and increased availability of skilled personnel.

For investors seeking exposure to near-term gold production in a tier-one jurisdiction, Rox Resources presents an attractive opportunity backed by a high-grade resource, robust economics, and an experienced team capable of delivering on its development timeline.

Want to Invest in Australia's Next Major Gold Producer?

Discover why Rox Resources' Youanmi Gold Project represents a compelling investment opportunity with its 2.1 million ounce high-grade resource, robust economics, and clear pathway to production. With dewatering underway and development milestones approaching, now is the time to position yourself in this emerging gold story. Visit Rox Resources' website to learn more about their strategic advantage in Western Australia's premier gold province and how they're capitalising on strong gold market fundamentals.