Rox gives go-ahead for Youanmi gold mine, aiming for first pour in mid-CY27

Rox Resources (ASX:RXL) has made the final investment decision for the high-grade Youanmi gold project in Western Australia, paving the way for early construction to begin before a planned first gold pour in mid-CY27.

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The FID follows the receipt of a mining development and closure proposal from the Western Australian Department of Mines, Petroleum, and Exploration.

Rox’s managing director and CEO, Phill Wilding, said the decision allows construction to commence for the new processing plant, tailings storage facility (TSF) and power station/solar array, as well as the redesign of the existing west main waste rock dump, which will become the new run-of-mine.

“Bulk earthworks will commence shortly… for these construction works, whilst the company finalises the remaining key contracts,” Mr Wilding said. “The project is now fully funded through to production, and over coming months we’ll work towards financial close while ramping up on-site construction activity.

He continued: “This is a pivotal milestone for Rox Resources, allowing us to remain on schedule with our pathway towards production as we prepare for an average 117,000 ounce per annum production profile.”

The final approvals are supported by $350 million in credit commitments from a syndicate of banks (a $200M placement) and a $18M share purchase plan.

Rox and the syndicate of banks are now working towards the execution of finance documents and satisfaction of typical conditions precedent. Financial close and first debt drawdown are expected in the September CY26 quarter.

Most early works streams have already commenced, with the majority of long lead items ordered, and construction of the accommodation facilities ongoing.

The mine is scheduled to produce 117,000 ounces per annum over an initial seven-year life of mine. Rox is confident there is still upside and is targeting production rate increases and mine life with further drilling.

Studies have identified an NPV8 of $1.4 billion and IRR of 69% (pre-tax) of $1.0 billion and IRR 55% (post-tax) at the base case of A$5,200 per ounce and an NPV8 A$2.4 billion and IRR 102% (pre-tax), $1.7 billion and IRR 81% (post-tax) at a spot gold price of A$7,000 per ounce, the company added.

RXL is down -1.5% to 49.3¢ today.

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