Name of the Project
Youanmi gold project.

Location
Murchison region of Western Australia.

Project Owner/s
Rox Resources.
 
Project Description
The project encompasses underground mine production from the Youanmi main lode, Link and Pollard deposits.

A prefeasibility study (PFS) has confirmed the potential to develop a financially attractive, standalone high-grade and -margin gold project with an initial 7.7-year mine life.

The project has a maiden probable ore reserve estimate of 3.83-million tonnes at 4.4 g/t gold for 546 000 oz of contained gold.

The PFS envisages production of 786 000 oz of gold doré over the life-of-mine (LoM), averaging 103 000 oz/y over the LoM.

There is significant upside in the project, with the underground resource remaining open down-dip and along strike, and near-mine exploration targets of between 1.1-million ounces and 1.8-million ounces. These targets have the potential to increase the yearly production rate and mine life of the project if Rox is successful in converting those ounces into resources and, ultimately, ore reserves.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a conservative gold price of A$3 100/oz, the project has a pretax and unleveraged net present value, at an 8% discount rate, of about A$486-million (after-tax A$322-million) and internal rate of return of about 42% (after-tax 33%), with a payback of 2.9 years (after-tax 3.3 years) from the completion of construction and commissioning.

Capital Expenditure
Preproduction capital is estimated at A$245-million.

Planned Start/End Date
Not stated.

Latest Developments
Rox Resources has appointed Phillip Wilding, recently the COO of Western Australian gold miner Westgold Resources, as its new CEO to drive development of the Youanmi project.

Wilding is succeeding Rob Ryan, who is stepping down as MD and CEO after two years in the role.

Thanking Ryan for his contribution to the company, chairperson Stephen Dennis pointed out the work that was done to derisk the Youanmi project.

Rox has also announced the appointment of Nathan Stoitis as nonexecutive director. Stoitis is an experienced metallurgist with over 25 years’ experience in plant management, operations and global sales and marketing.

Key Contracts, Suppliers and Consultants
None stated.

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