ROX Resources Ltd
- ASX Code: RXL
- Market Cap: $668,912,851
Rox Resources Reports High-Grade Underground Results as Youanmi Gold Mine Advances Towards Production
Rox Resources (ASX: RXL) has released an operational update confirming ROX Resources Youanmi Gold Mine high-grade underground drilling results, alongside a newly executed power supply agreement and continued construction progress. According to the announcement, the project is tracking ahead of Definitive Feasibility Study (DFS) expectations in several key areas, with results suggesting the mine's gold endowment may extend beyond what was modelled in the DFS.
With first gold targeted for mid-CY2027, the update covers drilling, development, construction and contracting activity that together reinforce the case for what Rox has described as a potential 150,000 ounce per annum operation in future years.
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Underground Drilling Delivers High-Grade Intercepts
The latest diamond drilling results from the United North zone at Youanmi form the centrepiece of the announcement. A total of 17 holes for 3,198 metres were completed in July, with assays now returned for a subset of holes. The host shear zones, the structural features that control gold mineralisation at Youanmi, were reported in every drill hole, indicating consistency across the programme.
Notable intercepts from the latest results include:
| Hole ID | From (m) | Interval (m) | Grade (g/t Au) | Highlight Sub-interval |
|---|---|---|---|---|
| UNN26_009 | 113.83 | 10.40m | 2.65 g/t Au | incl. 4.37m @ 4.96 g/t Au |
| UNN26_011 | 108.00 | 5.00m | 6.39 g/t Au | incl. 1.27m @ 22.36 g/t Au |
| UNN26_012 | 118.50 | 6.13m | 2.96 g/t Au | incl. 1.36m @ 8.62 g/t Au |
| UNN26_014 | 220.70 | 2.24m | 39.33 g/t Au | – |
The standout result is UNN26_014, which returned 2.24 metres at 39.33 g/t gold, representing 88.1 gram-metres of contained gold. This intercept occurs at a deeper position in the drill hole, indicating that high-grade mineralisation extends beyond the shallower portions of United North previously reported.
"Underground infill drilling at United North has continued to return significant high-grade results, further solidifying Rox's mine plan and continuing to derisk delivery from the high-grade Youanmi ore system," said Phill Wilding, Managing Director and CEO of Rox Resources.
The drilling programme is primarily operational, aimed at infilling the resource model so the mine remains drilled 12 months ahead of mining by mid-CY2027. This approach is a standard derisking measure for underground gold operations, supporting confident stope planning and ore delivery scheduling.
What Is Grade Control Drilling and Why Does It Matter?
Understanding grade control drilling helps explain the significance of the ROX Resources Youanmi Gold Mine high-grade underground drilling results for investors.
In an underground gold mine, ore is extracted from stopes, which are excavated voids where high-grade rock is blasted and removed. Before stoping begins, operators need reliable data on the location, grade and shape of the mineralisation. This is achieved through grade control drilling, a closely spaced pattern of holes that provides a dense grid of assay information within the planned mining area.
Grade control drilling serves two purposes:
- Derisking ore delivery – reducing the chance of sending lower-grade or barren rock to the mill, which would dilute the head grade.
- Mine planning certainty – allowing planners to design stope shapes and sequences with confidence.
When Rox reports drilling tracking 12 months ahead of mining, it indicates the geological data required for each stope will be available well in advance of excavation. For investors, consistent high-grade results from this drilling serve two functions: they support the reliability of the DFS resource model, and they point to the possibility that parts of the ore body may be richer than originally modelled.
Development Extends Beyond the DFS Mine Plan
According to the announcement, ore drive development on the 2356mRL and 2341mRL levels has now progressed beyond the boundaries of the DFS mine plan. This means physical underground tunnelling has moved into areas not included in the original resource model used for the DFS.
Face sampling from the 2341mRL level has returned results, with the mapped host shear zone on that level correlating with the 2356mRL level, furthermore supporting continuity of mineralisation across both levels.
Standout face sampling results from the 2341mRL level include:
| Sample ID | Interval (m) | Grade (g/t Au) | Gram-Metres |
|---|---|---|---|
| UNN_2341_ODS1_F23_A | 2.50m | 21.01 g/t Au | 52.52 |
| UNN_2341_ODS1_F25_A | 3.70m | 36.32 g/t Au | 134.39 |
| UNN_2341_ODS1_F22_A | 1.20m | 14.41 g/t Au | 17.29 |
Results from the 2356mRL level are similarly notable:
| Sample ID | Interval (m) | Grade (g/t Au) | Gram-Metres |
|---|---|---|---|
| UNN_2356_ODS1_F6_A | 4.20m | 14.01 g/t Au | 58.85 |
| UNN_2356_ODS1_F14_A | 3.10m | 12.33 g/t Au | 38.23 |
| UNN_2356_ODS1_F11_A | 0.60m | 6.76 g/t Au | 4.06 |
A second ore drive on the 2341mRL level is also being developed beyond the DFS mine plan, with face grades described by the company as encouraging and potentially offering additional near-term stoping opportunities.
The announcement notes that face sampling results are operational in nature and should not be treated as equivalent to resource definition drilling. Assays for the 2356mRL ore drive south remain pending.
"Development drives are now progressing beyond the DFS mine plan, delivering encouraging face sampling results which are strengthening our confidence in mineralisation extending beyond that outlined in the DFS," Wilding said.
Pacific Energy Contract Secures Power Supply
Rox has executed a Power Purchase Agreement (PPA) with Pacific Energy Pty Ltd (PEL), an established independent power provider to the Western Australian mining sector operating more than 40 power stations across the state. The agreement is structured as a Build, Own, Operate (BOO) arrangement with a 10-year initial term and extension options to support future mine life.
The company reports that pricing under the agreement is in line with assumptions used in the DFS financial model.
| Power Source | Capacity |
|---|---|
| Thermal (gas) | 25 MW |
| Solar (DC) | 26 MWdc |
| Diesel backup | 2 MW |
| Battery storage | 9.3 MVA |
The combined thermal, solar and battery storage design reflects a multi-source approach to remote mine power. PEL has commenced mobilisation to site.
This PPA is described as the second-to-last major contract required for the project. The oxygen supply contract remains outstanding, with final negotiations underway and a preferred supplier selected under an early works agreement.
Previously secured major contracts include:
- Process Plant and Associated Infrastructure EPC – Interquip Construction Pty Ltd
- IsaMill and OxiLeach Reactor (Albion Circuit) Supply – Glencore Technology Pty Limited
- LNG Supply and Storage – Cefa Evol Pty Ltd
- Bulk Earthworks and Road Construction – Lambron Contracting Pty Ltd
Construction Progress on the Processing Plant
EPC contractor Interquip is reported to be progressing on schedule with construction of the 1.0 million tonne per annum (Mtpa) processing plant. Milestones cited in the announcement include:
- Concrete foundations progressing to plan, including completion of the screen plant and carbon-in-leach (CIL) ring beams
- Work advancing on the crusher, conveyor, fine ore bin, tunnel and ball mill
- CIL tank steel plates arrived on site with construction underway
- Long-lead equipment items remaining on schedule
- Bulk earthworks substantially complete across the plant area
- Tailings dam progressing, with topsoil clearing nearing completion
Underground Mining Sets a Record Month
Mining operations during July delivered 522 metres of total advance, comprising:
- 350 metres of development advance across the three mining areas
- 172 metres of stripping in the historic Youanmi Decline
The company describes this as another record month of development advance, feeding directly into ore stockpile building ahead of processing plant commissioning. Rox is targeting a commissioning ore stockpile of 190,000 tonnes at 3.3 g/t gold before mill start-up.
Secondary ventilation is now established for both the Youanmi and Pollard declines, with an initial primary ventilation circuit in place at United North. Primary pump stations and escapeways are also advancing, described by the company as prerequisites for production stoping to commence.
Pathway to Production Milestones
| Milestone | Status |
|---|---|
| Definitive Feasibility Study | Completed November 2025 |
| Equity Funding ($200M placement + $18M SPP) | Completed December 2025 |
| Debt Financing ($350M facilities) | Secured March 2026 |
| MDCP Approval (plant, tailings, infrastructure) | Received March 2026 |
| Final Investment Decision | Approved March 2026 |
| Works Approval | Received July 2026 |
| Dewatering (Main Pit) | Completed |
| Mining across all planned declines | Underway |
| Underground infill drilling | Commenced |
| EPC Contract (Interquip) | Executed, construction underway |
| Power Purchase Agreement (Pacific Energy) | Signed August 2026 |
Near-term milestones outlined by the company include finalising the oxygen supply contract, satisfying conditions precedent to drawdown of the debt facility, continuing to build the underground ore stockpile, commencing Youanmi Deeps resource conversion and exploration drilling in Q3 CY2026, and progressing toward production stoping in coming months.
Investment Considerations for Rox Resources
The Youanmi Gold Mine sits within a resource base described by the company as hosting a global mineral resource of 12.1 million tonnes at 5.6 g/t gold for 2.2 million ounces. At 5.6 g/t, this places the deposit at the higher end of grade for gold projects globally.
The consistency of face sampling and infill drilling results at or above DFS assumptions, together with development extending beyond the DFS mine plan, suggests the DFS may present a conservative view of the project's potential. Resource conversion drilling at Youanmi Deeps is scheduled to begin in Q3 CY2026, which could consequently add to the resource inventory.
Rox has secured $200 million in equity and $350 million in debt financing, positioning the company without funding uncertainty as it enters construction and commissioning. With all but one major contract executed, and the Pacific Energy PPA priced in line with DFS assumptions, the project's contracting structure is largely in place.
Management has articulated an aspiration to reach 150,000 ounces per annum in future years, above the initial nameplate throughput of 1.0 Mtpa. The ROX Resources Youanmi Gold Mine high-grade underground drilling results, however, suggest that this ambition may well be within reach.
Key Takeaway
Rox Resources is advancing the Youanmi Gold Mine across drilling, development, construction and contracting, with the latest underground results supporting the DFS mine plan while pointing to potential for the ore system to extend beyond what was originally modelled. With funding secured, a target of first gold in mid-CY2027, and an aspiration toward 150,000 ounces per annum, the project presents a gold development story with several near-term catalysts for investors to monitor.
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Glossary of Key Terms
| Term | Definition |
|---|---|
| DFS (Definitive Feasibility Study) | A detailed technical and economic study forming the basis for a Final Investment Decision on a mining project |
| g/t Au | Grams of gold per tonne of rock, the standard measure of gold grade |
| Gram-metres | Grade multiplied by interval width, a composite measure of drill intercept significance |
| UGDD | Underground diamond drill hole, a core drill hole drilled from underground |
| UGFS | Underground face sample, a chip sample collected from the working face of an advancing tunnel |
| Shear zone | A zone of rock deformation that at Youanmi hosts gold mineralisation |
| CIL (Carbon-in-Leach) | A gold processing method where gold is dissolved into solution and adsorbed onto activated carbon |
| Stope | The underground void created when ore is extracted, the primary source of mill feed |
| mRL | Metres relative level, the elevation of a mine working expressed above sea level |
| BOO (Build, Own, Operate) | A contracting model where a third party finances, builds and operates an asset on behalf of the mine |
| PPA (Power Purchase Agreement) | A contract governing the supply and pricing of electricity to the mine |
| EPC (Engineering, Procurement, Construction) | A contracting structure where a single contractor delivers a facility in full |
Ready to Learn More About Rox Resources and the Youanmi Gold Mine?
With funding secured, major contracts largely in place, and high-grade underground results continuing to validate and potentially exceed the DFS mine plan, Rox Resources (ASX: RXL) is advancing the Youanmi Gold Mine toward first gold in mid-CY2027. Investors seeking to explore the project's potential — including near-term resource conversion drilling, production stoping milestones, and the pathway to a 150,000 ounce per annum operation — can find further information directly at roxresources.com.au.
