Rox Resources Raises $40M, Advances Youanmi DFS and Drilling Campaign
Rox Resources has made significant strides in advancing its Youanmi Gold Project, backed by a $40 million capital raise and promising drilling results that underpin an imminent resource update and feasibility study.
- Dewatering commenced at United North and Main pits to enable early underground access
- 35,000m step-up drilling campaign delivers high-grade results informing resource update
- Definitive Feasibility Study progressing with metallurgical testing and major contracts awarded
- $40 million placement completed to fully fund DFS and early works
- Strong interest from financiers in debt funding process with attractive terms
Steady Progress at Youanmi
Rox Resources Limited (ASX – RXL) has reported a robust quarter ending June 2025, marked by tangible progress on its flagship Youanmi Gold Project in Western Australia. The company has initiated dewatering operations at the United North and Main pits, a critical step that unlocks early underground access and significantly reduces execution risks for the planned mining declines.
Complementing these operational advances, Rox has completed an extensive 35,000-metre drilling campaign, delivering high-grade assay results that will feed into an updated mineral resource estimate expected imminently. This drilling effort, conducted under budget and ahead of schedule, reinforces confidence in the scale and quality of the underground resource.
Definitive Feasibility Study Gains Momentum
The Definitive Feasibility Study (DFS) is progressing on multiple fronts. Rox has finalized a detailed project schedule highlighting critical path items, with metallurgical test work well underway. Notably, comminution and flotation tests have been completed, and advanced Albion™ process testing on concentrate samples is in progress, informing process plant design.
All major external contracts related to tailings storage, geotechnical studies, processing plant design, and hydrology have been awarded and are advancing as planned. The company has also submitted environmental and mining approvals, including native vegetation clearing permits, positioning the project for construction commencement.
Strong Financial Position and Strategic Moves
Financially, Rox Resources is well positioned with a cash balance of $50.5 million at quarter-end, bolstered by a successful $40 million two-tranche placement to institutional and sophisticated investors. This capital injection fully funds the DFS and early works program, including underground development, portal rehabilitation, and infrastructure construction.
Additionally, Rox completed the sale of its non-core Mt Fisher – Mt Eureka tenements to High-Tech Metals Limited, receiving a combination of cash, equity, and royalties. This divestment further strengthens the company’s cash reserves and sharpens its focus on Youanmi’s development.
On the financing front, Rox has engaged BurnVoir Corporate Finance to manage a debt funding process, attracting strong interest from leading mining banks and financiers. While non-binding, the expressions of interest suggest debt funding could substantially exceed the project’s capital requirements on favourable terms.
Looking Ahead
Rox Resources is on track to release its updated mineral resource estimate this month, a key milestone that will underpin the final DFS due in the fourth quarter of 2025. Early underground works are expected to commence in early 2026, with mining tenders scheduled for release shortly, marking critical steps toward production.
Managing Director Phillip Wilding highlighted the company’s confidence in the project’s scale and quality, noting that the recent drilling results and strong financial backing provide a solid foundation for advancing Youanmi into a high-grade underground gold producer.
Bottom Line?
With drilling success and robust funding, Rox Resources is poised to transform Youanmi into a major gold producer, but upcoming DFS results and financing finalisation will be pivotal.
Questions in the middle?
- How will the upcoming mineral resource update impact the project’s reserve classification and mine plan?
- What are the specific terms and conditions expected from the debt financing, and how might they affect project economics?
- How soon will mining tenders be awarded, and what risks remain in transitioning from feasibility to construction?
