Rox Resources Accelerates Construction at Flagship Youanmi Gold Mine Development

Rox Resources (ASX: RXL) is accelerating construction at its flagship Youanmi gold mine in Western Australia after being granted works approval for the site’s processing plant, tailings dam, wastewater treatment facility, power station, and associated infrastructure.

Having also received the final key environmental approval for the project, the company is now fully permitted to execute its mine plan and achieve first gold pour by mid-2027.

Engineering, procurement, and construction contractor MACA Interquip Mintrex has set up its site offices and commenced construction works for the plant, which has been designed with nameplate capacity of 1 million tonnes per annum.

Mill components including the ball mill shell, carbon-in-leach tank, and Albion tank have been manufactured and are awaiting transport to site while structural foundation concrete pouring is expected to commence over the coming month.

Decline Stripping Activities

The historical Youanmi decline, which is set to provide an additional mining front to the United North underground mine, has been advancing with stripping activities to bring it to the required size for modern mining equipment.

Rox has also commenced development of the planned Pollard decline, which will be the third of its kind for Youanmi and will act as a high-grade future ore source in the long-term mine plan.

Activities in the short term are aimed at accessing the ore and providing a diamond drill platform to allow early growth drilling beneath the existing mine plan as Rox aims to increase the life of mine.

The advance between the Youanmi and Pollard declines totalled 92 metres in June and is expected to ramp up quickly as the work areas progress.

Dewatering works are progressing through an initial borehole into the Youanmi old workings and another deeper hole is being prepared to commence pumping, with the aim of maintaining dewatering ahead of the stripping and rehabilitation works.

United North Mining Rates

Mining at United North continues to exceed rates outlined in the Youanmi definitive feasibility study (DFS), with 339m completed in June using a single development jumbo rig.

Ore drive development is underway on multiple fronts and run-of-mine stockpiles are growing towards a total 190,000 tonnes grading 3.3 grams per tonne for plant commissioning, consistent with DFS assumptions.

Perth-based contractor K-Drill commenced diamond infill drilling at United North 2310mRl Substation 1 in June focused on improving confidence and geological control for ore drives and initial samples have been sent to the laboratory for analysis.

As end June, Rox had a cash balance of $152.7 million, representing a decrease of $47.7m from the previous quarter, as mining and construction activities ramped up.

The company has access to $350m in debt facilities, which are expected to be drawn down in the second half of this year, and can also call on proceeds from a $218m share placement in December to finalise Youanmi’s equity funding.

Infrastructure Construction

Construction of Youanmi’s mining offices and changerooms has been completed and commissioned, while works on the initial workshop and wash bay is nearing completion.

A contract has been awarded for the supply and installation of administration and processing office facilities, with completion expected before year end.

Camp upgrade works are nearing completion with handover of the 351-room facility for staff and contractors expected by month end.

“With all major approvals now in place, construction underway, underground drilling commenced, and several activities tracking ahead of schedule, Rox is fully funded and continuing to execute its plan to become one of Australia’s next high-grade gold producers,” chief executive officer Phill Wilding said.