High-Grade Youanmi Gold Project Advancing Rapidly Toward Production
Rox Resources (ASX: RXL) is advancing its flagship Youanmi Gold Project in Western Australia toward production, with recent developments significantly enhancing the project's already robust economics. The company's high-grade underground gold project has seen substantial resource growth, with a recently updated Mineral Resource Estimate (MRE) revealing 12.1Mt at 5.6 g/t for 2.17 million ounces, including a 36% increase in underground Indicated Resources.
With the gold price reaching record highs and the company's dewatering and early works programme making excellent progress, Rox is positioned to capitalise on strong market conditions with its Definitive Feasibility Study (DFS) expected in late 2025.
Resource Growth and Grade Improvements Drive Project Economics
The company's July 2025 resource update delivered significant improvements over the previous estimates used in the Pre-Feasibility Study (PFS):
- Total Mineral Resource increased to 12.1Mt at 5.6 g/t for 2,170,000 ounces
- Underground Resource now stands at 10.9Mt at 6.0 g/t for 2,101,000 ounces
- 11% increase in grade and substantial tonnage growth
- 36% increase in Underground Indicated Resources
The previous PFS, based on a smaller resource, already demonstrated compelling economics with:
- Production profile of >100,000 ounces per annum
- Low AISC of A$1,676/oz (US$1,089/oz)
- Free cash flow of approximately A$1.3 billion at A$3,700/oz gold price
- Post-tax NPV8 of A$541 million and IRR of 49% at the same gold price
With the significant resource growth and current gold prices exceeding the PFS base case by over A$2,300/oz, the project economics are expected to improve substantially in the upcoming DFS.
Dewatering Progress and Early Works Advancing
Rox is making substantial progress with site preparations:
- United North Pit dewatering completed
- Main Pit dewatering underway
- Portal preparation and pit wall meshing in progress
- United North exploration decline expected to commence in early Q4 2025
- Pollard exploration decline targeted for Q1 2026
- Camp expansion and office installation commencing in September 2025
These early works are positioning the company for a smooth transition to construction following the DFS completion and Final Investment Decision (FID).
"Our dewatering progress and early works programme is setting the foundation for a rapid transition to development. With our exploration declines planned to commence later this year, we're taking decisive steps toward becoming Western Australia's next gold producer." – Phillip Wilding, Managing Director & CEO
Metallurgical Testing Confirms High Recoveries
Recent metallurgical test work has confirmed the viability of the proposed processing route:
- Comminution testing showing moderate hardness (BWI 16kw/t)
- Flotation achieving 98.3% sulphur recovery and 91.6% gold recovery to concentrate
- Albion Process oxidation delivering 94.0-95.8% gold recovery from concentrate
- Overall gold recovery expected to be 90-92%
The process route combines conventional crushing, grinding and flotation with the Albion Process for oxidation of sulphide concentrates, followed by conventional cyanide leaching to produce gold doré on site.
Understanding the Albion Process
The Albion Process is a specialised oxidation technology used to treat refractory gold ores where gold is locked within sulphide minerals (primarily pyrite and arsenopyrite).
This process involves ultrafine grinding of the sulphide concentrate (to P80 10-12 μm) followed by controlled oxidation, which breaks down the sulphide minerals and exposes the gold for conventional cyanide leaching. The technology offers several advantages:
- Lower capital cost compared to alternative oxidation methods
- Simpler operation without specialised operators
- Flexibility to handle variable sulphur grades and throughputs
- Faster commissioning time
For Youanmi Gold Project by Rox Resources Ltd, only about 15% of the total ore material will require processing through the Albion circuit, as up to 60% of the gold is free-milling. This selective application of the technology helps optimise capital and operating costs.
Exploration Upside
Beyond the current resource, Rox controls more than 60km of strike along the highly prospective Youanmi Shear Zone, with recent exploration delivering promising results:
- Near-mine exploration between Bunker pit and Paddy's lodes: 6.00m @ 2.32g/t Au and 0.69m @ 6.81g/t Au
- High-grade results adjacent to existing pits: 5.30m @ 6.34g/t Au and 4.12m @ 14.86g/t Au
- Currans Find area (20km south of Youanmi): 3.00m @ 19.05g/t Au
These results highlight the potential for further resource growth both near-mine and regionally.
Pathway to Production
Rox has outlined a clear pathway to production:
| Timeline | Key Milestones |
|---|---|
| Q4 2025 | Definitive Feasibility Study completion |
| Q1 2026 | Final Investment Decision |
| Q1-Q4 2026 | Mill construction and commissioning |
| Q2 2027 | First gold production |
The company is already progressing with:
- Resource definition and exploration drilling
- Metallurgical test work for the DFS
- Environmental and mining approvals
- Dewatering and early access works
Why Investors Should Follow Rox Resources
Rox Resources presents a compelling investment case for gold investors:
- Near-term production with clear pathway to development
- High-grade resource (5.6 g/t Au) providing robust margins
- Strong cash position of A$50.5 million to fund DFS and early works
- Existing infrastructure reducing capital requirements and development timeline
- Counter-cyclical advantage in the current high gold price environment
- Significant exploration upside across extensive landholding
- Experienced management team with proven record in Australian gold mine development
With a market capitalisation of A$314 million, strong institutional backing (including Hawke's Point at 17.7% and QGold at 7.0%), and an advancing high-margin gold project, Rox is strategically positioned to deliver substantial shareholder value as it transitions from explorer to producer.
The company's focus on grade, margin, and upside potential makes the Youanmi Gold Project by Rox Resources Ltd a standout opportunity in the Australian gold sector.
Ready to Invest in Western Australia's Next Gold Producer?
Discover how Rox Resources (ASX: RXL) is fast-tracking its high-grade Youanmi Gold Project toward production with compelling economics, significant resource growth, and a clear development pathway. With dewatering completed, early works underway, and gold prices at record highs, now is the perfect time to explore this outstanding investment opportunity. Visit Rox Resources' website today to learn more about their journey to becoming Western Australia's next significant gold producer.
