Youanmi Gold Project Advances Towards Production with Rox Resources

The Youanmi Gold Project Rox Resources presents a compelling investment opportunity as Rox Resources (ASX: RXL) recently outlined its robust development strategy at the RIU Explorers Conference. With high-grade resources, strong financial metrics, and advanced funding arrangements, the project demonstrates significant potential for investors seeking exposure to Australia's gold sector. Furthermore, the company's systematic approach to development and strategic location in Western Australia's premier gold province creates a foundation for substantial returns.

What Makes the Youanmi Gold Project a High-Grade Foundation?

The presentation highlighted the project's exceptional resource quality, with a Mineral Resource of 12.1 Mt @ 5.6 g/t Au containing 2.17 million ounces. The high-grade nature of the deposit is further demonstrated by the Ore Reserve of 4.4 Mt @ 4.8 g/t Au for 674,000 ounces, providing a solid foundation for initial operations.

Resource Breakdown:

The mine plan targets 5.7 Mt @ 4.9 g/t Au for 900,000 ounces, supporting an initial 7-year mine life averaging 117,000 ounces per annum with significant potential for expansion. In addition, the resource remains open down dip and along strike, providing numerous opportunities for growth.

How Strong Are the Financial Economics?

The Definitive Feasibility Study (DFS) delivers outstanding financial metrics that position the Youanmi Gold Project Rox Resources as a high-margin, low-cost operation. These compelling numbers demonstrate the project's potential to generate substantial returns for shareholders.

Key Financial Highlights:

• Pre-tax NPV₈: $1.4 billion ($2.4 billion at spot gold price of $7,000/oz)
• Post-tax NPV₈: $1.0 billion ($1.7 billion at spot gold price)
• Pre-tax IRR: 69% (102% at spot gold price)
• Post-tax IRR: 55% (81% at spot gold price)
• All-In Sustaining Cost (AISC): $1,978/oz
• Payback Period: 1.6 years pre-tax
• Pre-production Capital: $383 million

The project demonstrates strong resilience with free cash flow of approximately $2.3 billion pre-tax at the base case gold price of $5,200/oz. However, this increases to $3.7 billion at spot prices of $7,000/oz, highlighting the project's leverage to gold price movements.

What Is AISC and Why Does It Matter?

All-In Sustaining Cost (AISC) represents the total cost to produce an ounce of gold, including mining, processing, administration, royalties, and sustaining capital expenditure. Consequently, this comprehensive metric provides investors with a clear picture of operational efficiency and profitability potential.

Rox's projected AISC of $1,978/oz is competitive within the industry and provides substantial margins at current gold prices. For instance, the cost structure demonstrates operational efficiency and positions the Youanmi Gold Project Rox Resources to generate strong cash flows throughout the mine life.

AISC Breakdown ($/oz):

• Mining Costs: $904
• Processing Costs: $593
• Site G&A: $93
• C1 Cash Cost: $1,590
• Royalty Payments: $179
• Sustaining Capital: $209
• Total AISC: $1,978

The C1 Cash Cost represents the direct costs of production before royalties and capital expenditure. In contrast, AISC provides the complete cost picture including all expenses required to maintain production over the mine life.

How Advanced Is the Funding Strategy?

The company has made significant progress toward securing project funding. According to the presentation, Rox has completed approximately $218 million in equity funding, representing around 40% of the ~$450 million total funding requirement. Furthermore, this progress reduces execution risk and positions the company favourably for development.

Key funding milestones include:

• Strong appetite from leading debt providers with positive terms and conditions
• Expectation for binding term sheets in Q1 CY2026
• Debt process running parallel to study work and permitting activities

This funding progress reduces execution risk and positions the company for Final Investment Decision (FID) in early 2026. Additionally, the parallel approach to funding and development work demonstrates management's commitment to efficient project advancement.

What Progress Has Been Made on Operations?

Rox has demonstrated commitment to project advancement through substantial early works infrastructure development. These achievements position the Youanmi Gold Project Rox Resources for efficient construction and startup once funding is finalised.

Infrastructure Achievements:

• 111-room operational camp with Phase 2 expansion underway (240 rooms plus dry mess)
• United North exploration decline established with Byrnecut fully mobilised
• 75% completion of Main Pit dewatering
• Major clearing permits obtained
• Underground mining approvals secured
• EPC contractor engaged (MACA Interquip Mintrex)

The company has commenced ordering long-lead mill items and expects to begin the Pollard exploration decline in H1 CY2026. This will provide underground drilling platforms for resource extension work, potentially adding significant value to the project.

What Growth Potential Exists Through Resource Expansion?

The presentation emphasised significant exploration upside, with the resource remaining open down dip and along strike. Moreover, the Youanmi Gold Project Rox Resources sits on over 60km of prospective strike length, most of which remains underexplored.

Key growth drivers include:

• Over 60km strike length on the Youanmi Shear Zone with minimal drilling outside existing mine areas
• Top 300 metres containing greater than 4,000 ounces per vertical metre
• Recent drill results confirming mineralisation continuity

Recent Drilling Highlights:

• RXDD228: 5.30m @ 6.34g/t Au from 84.2m (Bunker)
• RXDD225: 4.12m @ 14.86g/t Au from 330.9m (Midway)
• RXDD217: 6.00m @ 2.32g/t Au from 165.0m

H1 CY2026 Drilling Program:

• Infill drilling of upper mine plan levels
• Connemarra-Commonwealth prospect (previous high-grade small-scale mine)
• Hope Prospect exploration north along main shear
• EIS co-funded drilling south of Youanmi main area

These programs could significantly expand the resource base and extend mine life beyond the initial seven-year plan.

What Is the Production Timeline?

The company outlined a clear pathway to production with key milestones targeting first gold in CY2027. This timeline demonstrates management's confidence in project execution and provides investors with clear expectations for development progress.

CY2026 Priorities:

• Q1: Binding debt term sheets expected
• Q1-Q2: Resource extensional drilling from surface and underground
• Q2-Q3: Mill construction commencement
• Processing plant engineering and component orders

CY2027 Objectives:

• Q3-Q4: First gold production targeted
• Ramp-up to steady-state production of 117,000 ounces per annum

The mine plan includes building a 180kt stockpile at ~3.3g/t Au prior to commissioning. Consequently, this provides operational flexibility during startup and reduces ramp-up risks.

Management Commentary on Project Outlook

"The project demonstrates strong resilience with free cash flow of approximately $2.3 billion pre-tax at the base case gold price, increasing to $3.7 billion at current spot prices."

This statement from the Managing Director highlights the project's robust economics and sensitivity to gold price appreciation.

Why Should Investors Follow This Development?

The investor presentation outlined several compelling reasons why the Youanmi Gold Project Rox Resources deserves attention in the gold development space. These factors combine to create a potentially attractive investment opportunity for those seeking exposure to high-grade gold production.

Investment Thesis Summary:

1. High-grade, low-cost operation with industry-competitive AISC
2. Strong financial returns with 69% pre-tax IRR and robust NPV
3. Funding pathway well advanced with equity complete and debt progressing
4. Significant growth potential through resource expansion along 60km strike
5. Experienced management team with proven track record in Australian gold mine development

Near-term Catalysts:

• Binding debt term sheets (Q1 CY2026)
• Resource extension drilling results (H1 CY2026)
• Final Investment Decision (early 2026)
• Construction commencement (mid-2026)

The company's systematic approach to development, proven resource base, and strategic location in Australia's premier gold province create a foundation for potential significant returns. Furthermore, as the project advances through construction to production, multiple value creation opportunities emerge.

Current Corporate Position and Market Standing

Corporate Position:
With a market capitalisation of $687 million as of 16 February 2026 and $232 million in cash, Rox maintains a strong balance sheet to execute its development strategy. The company trades at $0.495 per share with institutional ownership representing a significant portion of the register.

This strong financial position provides confidence in the company's ability to complete development activities. In addition, the substantial cash balance reduces dilution risks during the construction phase.

Rox Resources has positioned itself as a compelling gold development opportunity, combining high-grade resources, strong economics, and advanced funding with significant exploration upside. With first gold targeted for CY2027 and multiple near-term catalysts, the Youanmi Gold Project Rox Resources progress toward becoming Western Australia's next gold producer warrants investor attention. However, investors should conduct their own research and consider the risks associated with mining development projects before making investment decisions.

Could Rox Resources Be Your Next Gold Development Investment?

As Rox Resources advances the Youanmi Gold Project towards production with compelling economics, advanced funding arrangements, and significant expansion potential, sophisticated investors are closely monitoring this Western Australian gold development opportunity. With first gold targeted for CY2027, binding debt term sheets expected in Q1 CY2026, and multiple value creation catalysts on the horizon, now is the time to evaluate whether RXL aligns with your investment strategy. Discover more about Rox Resources' high-grade gold project, operational progress, and development timeline by visiting roxresources.com.au to access comprehensive investor information and project updates.