Rox Resources Ltd Advances Production Milestone at Youanmi Project

Rox Resources (ASX: RXL) recently presented to investors, outlining significant progress toward achieving the production milestone at Rox Resources Ltd through its flagship Youanmi Gold Project in Western Australia’s premier gold province. The presentation reinforces the company’s strong financial position with $232 million cash on hand and demonstrates clear momentum toward achieving first gold production by Q4 CY2027.

The presentation highlighted the project’s compelling economics, with the Definitive Feasibility Study delivering an NPV of $1.4 billion and IRR of 69% (pre-tax) at the base case gold price of $5,200/oz. At current spot gold prices of $7,000/oz, these metrics improve dramatically to an NPV of $2.4 billion and IRR of 102%.

Robust Production Economics Drive Investment Appeal

The Youanmi Gold Project presents compelling fundamentals for investors seeking exposure to high-grade, low-cost gold production. The presentation outlined key production metrics that position the project competitively within the global gold sector.

Key Production Metrics:

• • Average annual production: 117,000 ounces over initial 7-year mine life

• • All-in sustaining cost (AISC): $1,978/oz – positioning the project in the lowest quartile of global producers

• • Plant recovery rate: 90.8%

• • Pre-production capital: $383 million

The project’s high-grade ore reserve of 674,000 ounces at 4.8 g/t Au provides a strong foundation for the initial mine plan. Furthermore, the company has identified significant growth potential with the mineral resource containing 2.17 million ounces at 5.6 g/t Au, indicating substantial opportunity to extend mine life and increase production rates.

Understanding All-In Sustaining Cost (AISC)

AISC represents the total cost to produce and sell each ounce of gold, including mining, processing, administration, royalties, and sustaining capital expenditure. It provides investors with a comprehensive view of operational profitability by capturing both operating expenses and capital reinvestment requirements.

The presentation revealed Rox’s projected AISC of $1,978/oz breaks down as follows:

• • Mining costs: $904/oz

• • Processing costs: $593/oz

• • Site administration: $93/oz

• • Royalty payments: $179/oz

• • Sustaining capital: $209/oz

This low-cost structure ensures strong margins even in lower gold price environments, providing downside protection for investors while maximising returns during periods of elevated gold prices. Consequently, the company’s cost profile positions Youanmi in the lowest quartile of global gold producers, offering significant competitive advantages.

Construction Momentum Building Toward Production

The presentation emphasised significant progress across multiple workstreams positioning the company for Financial Investment Decision (FID) in Q1 CY2026. Management outlined substantial infrastructure achievements that demonstrate tangible advancement toward the production milestone at Rox Resources Ltd.

Infrastructure Development:

• • 111-room operational camp with Phase 2 expansion (240 additional rooms) underway

• • 75% completion of main pit dewatering

• • United North exploration decline established with Byrnecut fully mobilised

• • Major clearing permits obtained and underground mining approvals secured

Funding Progress:

• • $218 million equity raise completed (approximately 40% of $450 million total funding requirement)

• • Debt process running parallel with strong lender appetite

• • Binding term sheets expected Q1 CY2026

Management Commentary
The presentation highlighted management’s confidence in project delivery, with multiple funding discussions progressing alongside construction activities. The company expects to secure binding debt terms within the first quarter of 2026.

Engineering and Procurement:

• • EPC tenders for processing plant under review

• • Long-lead mill items ordering commenced

• • Detailed engineering for processing plant well advanced

Strategic Growth Potential Beyond Initial Mine Plan

The company highlighted substantial opportunities to expand beyond the initial 7-year mine plan. In addition, the presentation revealed that the top 300 metres of the resource contains greater than 4,000 ounces per vertical metre, indicating exceptional grade density that could support expanded production scenarios.

Near-term Growth Catalysts:

• • H1 CY2026 drilling programmes focused on infill drilling of upper mine levels

• • Surface and underground drilling platforms being established

• • Aeromagnetic survey interpretation and targeting for H2 CY2026 follow-up

The Youanmi Shear Zone extends over 60 kilometres with minimal drilling outside existing mine areas, presenting significant exploration upside. For instance, recent drilling results continue to validate the high-grade nature of the system, including intersections of 5.30m @ 6.34g/t Au at Bunker and 4.12m @ 14.86g/t Au at Midway.

Processing Infrastructure and Metallurgy

The presentation outlined a simple flowsheet designed to produce gold doré averaging 117,000 ounces annually with recoveries estimated at 90.8%. The processing methodology builds on understood metallurgy with 92% of gold associated with sulphides and 60% classified as free milling.

Processing Characteristics:

• • Flotation recovery: 91.6% total gold recovery to concentrate

• • Albion oxidation: 94.0% recovery from concentrate

• • Mass pull: Only 9% of feed to concentrate

• • Plant capacity: 1,000 ktpa with 900 ktpa initial mine plan

The technical approach incorporates conventional cyanide leach processing with Albion oxidation for sulphide concentrates. However, the company expects to build a 190,000 tonne stockpile at approximately 3.3g/t Au prior to commissioning, providing operational flexibility during the ramp-up phase.

Why Investors Should Follow Rox Resources

The company’s strategic positioning combines several compelling investment attributes that warrant attention from investors seeking exposure to Australian gold development projects.

1. Near-term Production Catalyst
With first gold targeted for Q4 CY2027, Rox offers investors exposure to a clearly defined pathway to cash generation within 18 months. Furthermore, the advanced stage of development and substantial progress across key workstreams supports this timeline toward the production milestone at Rox Resources Ltd.

2. Exceptional Project Economics
The combination of high grades, low costs, and strong margins positions Youanmi among Australia’s most attractive development projects. The NPV to capital ratio of 3.7x demonstrates capital efficiency.

3. Well-Funded Development
With substantial cash reserves and advanced debt discussions, the company has largely de-risked the funding requirements for construction. The completed equity raise addresses approximately 40% of total project funding needs.

4. Significant Growth Potential
The extensive, under-explored tenement package and high-grade resource base provide multiple avenues for production expansion and mine life extension beyond the initial 7-year plan.

Mineral Resources and Geological Context

The presentation reinforced the strength of Youanmi’s geological endowment within Western Australia’s established gold province. The mineral resource estimate of 12.1 Mt @ 5.6 g/t Au for 2.17 million ounces demonstrates substantial scale, with 7.9 million tonnes in the Indicated category.

Resource Breakdown:

• • Indicated Resources: 7.9 Mt @ 6.0 g/t Au (1.55 million ounces)

• • Inferred Resources: 4.1 Mt @ 4.7 g/t Au (623,000 ounces)

• • Open Pit Potential: 1.2 Mt @ 1.7 g/t Au (70,000 ounces)

The geological setting within the Youanmi Greenstone Belt provides multiple exploration targets along a 60-kilometre strike length. Consequently, the company’s systematic approach to resource definition and exploration indicates potential for significant resource growth through targeted drilling programmes.

Key Investment Consideration
The convergence of strong project fundamentals, advanced development stage, and substantial growth potential makes Rox Resources a compelling opportunity for investors seeking exposure to high-quality gold production in a tier-one jurisdiction. With funding largely secured and construction activities advancing, investors should monitor the company’s progress toward FID and subsequent re-rating catalysts as the project moves through permitting, construction, and into production.

The presentation demonstrates Rox Resources’ methodical approach to project development, combining technical excellence with financial discipline. The company’s ability to maintain strong cash reserves while advancing construction activities positions it favourably for the transition from developer to producer over the next 18 months toward achieving the production milestone at Rox Resources Ltd.

Ready to Explore Rox Resources’ Path to Gold Production?

With construction momentum building toward first gold production by Q4 CY2027 and exceptional project economics delivering an NPV of $1.4 billion, Rox Resources presents a compelling opportunity for investors seeking exposure to high-grade, low-cost Australian gold production. The company’s strong financial position with $232 million cash on hand, combined with the Youanmi Gold Project’s position in the lowest quartile of global producers, creates a unique investment proposition in Western Australia’s premier gold province. Discover how Rox Resources is advancing toward its production milestone and explore the full potential of the Youanmi Gold Project by visiting roxresources.com.au.