Name of the Project
Youanmi gold project.

Location
Near Mt Magnet, in Western Australia.

Project Owner/s
Rox Resources and Venus Metals.

Project Description
Youanmi has a project-wide resource of 27.9-million tonnes at 3.57 g/t gold for 3.2-million ounces of contained gold.

The proposed mine will have a plant throughput of 480 000 t/y, with average gold production of about 71 000 oz/y and a gold head grade of 5 g/t gold for total gold production of about 569 000 oz over an eight-year life-of-mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated unleveraged and pretax net present value, at a 5% discount rate, of $303-million and an internal rate of return of 45%, with a payback of three years.

Capital Expenditure
$134-million.

Planned Start/End Date
Not stated.

Latest Developments
Rox Resources and Venus Metals have struck a deal that will consolidate the ownership of the Youanmi gold project.

Rox will acquire Venus’ gold interests in each of its Youanmi joint ventures (JVs), which includes 30% of OYG JV, 45% of Youanmi JV and Currans Find JV, and 50% of Venus Metals JV for a consideration of 110-million fully paid ordinary shares in Rox.

Venus will retain its nongold interests in the Youanmi JV, Currans Find JV and Venus Metals JV, as well as its interests in its non-Youanmi gold assets.

The transaction will result in the consolidation of the gold rights held by Rox and Venus into a single ownership structure.

“Consolidating the gold interests under the Youanmi gold project under Rox’s ownership is a logical transaction that is expected to deliver compelling value for both . . . shareholders and we are enormously excited about the strong foundation this transaction creates for the project’s ongoing exploration and development,” Rox MD Rob Ryan has said.

“The transaction provides investors and financiers with a clearer ownership structure and access to the full value of the Youanmi gold project.

“. . . this simplified ownership structure will enable Rox and Venus shareholders to share in the future growth of Rox as we work to unlock the full potential of the . . . project,” Ryan adds.

Venus has said that 2023 is set to be a milestone year at Youanmi, with drilling under way to convert existing inferred resources to indicated status to support the prefeasibility studies.

The Midway and Youanmi South discoveries could also be game-changers for the Youanmi gold project.

Venus MD Matthew Hogan has told shareholders that this is a win-win transaction for shareholders, which unlocks considerable value and dramatically simplifies the development pathway of the Youanmi gold project.

The transaction is subject to several conditions, including due diligence from both sides, shareholder and Ministerial approvals, and Rox forgiving a loan carry to Venus under the terms of the OYG JV.

Key Contracts, Suppliers and Consultants
Lynn Widenbar and Associates, CSA Global, Geobase and Model Earth (geology); PGM Geotechnical, Turner Mining and Geotechnical, Rockwater, SRK Consulting and APEG Mining (mining – technical studies); IMO, OMC, ALS, Core Technologies and Como Engineers (metallurgy and processing); KPS, Como Engineers, Maca Interquip, Novatron, Grounded, Northern Rise, Skipper Aviation, PPS (cost modelling); and Ecospine, Clark Lindbeck, Native Vegetation Solutions, Terratree, Western Ecological, AHA Logic, Terra Rosa, ESG Capital and Mine Earth (heritage and environment).

Contact Details for Project Information
Rox Resources, tel +61 8 9226 0044 or email admin@roxresources.com.au.