Rox Resources seeks to establish PFS at flagship Youanmi Gold Project, WA

Gold explorer Rox Resources (ASX:RXL) is looking to outshine the competition as it progresses exploration to usher in a Prefeasibility Study (PFS) for its majority-owned Youanmi Gold Project in Western Australia. 

Speaking this afternoon (16 May 2023) at the Resource Rising Stars conference on the Gold Coast, Managing Director Robert Ryan says: “We are looking to do a PFS by the end of the year as we continue to develop out the story at Paddy’s Lode and Midway.”

He notes the project has put the spotlight on Rox Resources and is enabling the company to stand out amongst its peers in Western Australia.

The Managing Director reports the company is looking to acquire full ownership of the Youanmi project, which is currently held in a joint venture between Rox and Venus Metals (ASX:VMC). Full ownership of the project will result in Rox holding 3 million ounces of resources under 1 umbrella.  

It is the company’s goal to upgrade a Scoping Study completed in 2022 and subsequently target more than 100,000 ounces of production per annum from the project.

Ryan told that Rox has seen success to date from exploration targeting the new Paddy’s Lode deposit, which has the potential to double ‘any sort of plan’ the company has laid out in its Scoping Study. It is Rox’s belief that this new lode also has the potential to host a multiple-lode system.  

Additionally, Ryan told this news service that Rox will seek to upgrade the current resource at its Link deposit later this year on the back of its exploration success at the Paddy’s Lode and Midway areas. Rox believes current exploration success has the potential to usher in a much bigger production scenario. 

“Once we finalise the transaction between ourselves and Venus to acquire 100% of the asset, this will significantly change the aspect of the company, because there’re not too many junior companies that hold 3 million ounces of resources under 1 umbrella, and I think that’s what will stand Rox out from its peers.

“… the exploration success that we have been having really does set us apart from a lot of our peers”

I think that the benefit with the exploration success that we have been having really does set us apart from a lot of our peers. Whilst we aren’t in production, we are continuing to develop Youanmi towards a profitable mine plan that we look to occur over the next couple of years. With the scoping study we did last year at 70,000oz per annum, I think there is a way to up-scale that to get it as a much more robust project and to start targeting that +100,000 ounces production.

We will look to upgrade our Resource later this year. Obviously, on the back of exploration success we are having at Paddy’s Lode, and as well as at Midway, it is kind of a fluid situation. We initially wanted to upgrade our resource a lot earlier in the year on the back of trying to get a feasibility study out by the end of this year, but this was going to be on a much smaller-scale production plan.

If we look at the exploration success that we are having, we could go for a much bigger production scenario — maybe a 1 million tonnes per annum (tpa)-style mine, and when you look at our mine plan, at 5 grams per tonne (g/t), it could be a significant scale opportunity.” 

With exploration still ongoing at Youanmi, Ryan announces the company will maintain its focus on drilling at Paddy’s Lode, as well as establishing resource updates in order to pave its way towards a PFS over the next 12-18 months. 

Rox also expects assays from a recently completed diamond drilling program to be received over the next 4-6 weeks. 

Rox Resources is an ASX-listed gold explorer progressing studies for the redevelopment of its Youanmi Gold Project and the exploration of other assets in Western Australia. The company’s Youanmi project represents a JV between Rox and Venus Metals, with Rox owning the majority interest of 70% while Venus retains the remaining 30%.   

Images: Rox Resources Ltd
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.