Rox Resources selects contractor to build processing plant at $383 million Youanmi gold project

Rox Resources has selected MACA Interquip Mintrex to build the processing plant for the $383 million Youanmi gold project south-east of Mt Magnet. Rox told the Australian Securities Exchange on Friday that MIQM had a proven track record in delivering small to large scale SMP projects, new and refurbished plant and equipment and consumables to the mineral processing and resource sectors. The gold exploration and development company said it had engaged MIQM since early 2024 to help with the prefeasibility and definitive feasibility studies for Youanmi, along with associated metallurgical test work. Rox said in December MIQM had started early front-end engineering works for the plant to ensure the planned timeline could be maintained. The company said the early engagement of MIQM would see key workstreams progress, including ordering of the remaining long lead items and preparation for ground works, in readiness for construction to begin following a final investment decision. Rox managing director and chief executive Phill Wilding said the engagement of MQIM as the preferred engineering, procurement and construction contractor was yet another major milestone for Rox as it accelerated its pathway to production at Youanmi. “MIQM is a globally renowned tier one engineering consultancy that has been working with Rox through the study phases and metallurgical test work, gaining a strong understanding of the project’s requirements,” he said. “Continuing with the early works process and procurement of long lead items is critical to our delivery timeframes and I’m pleased to report MIQM is well advanced on these processes. “With debt financing also progressing, all required approvals lodged, and a final investment decision on track for late in this quarter, Rox is edging closer to becoming Western Australia’s next gold producer of scale and grade.” Rox last November raised $200m and released a definitive feasibility study which put a $383m price tag on the development of Youanmi, which would produce an average of 117,000 ounces a year across an initial life of seven years. The study estimated production would peak in year six at 176,000oz and deliver 817,000oz during the life of the mine at a low all-in sustaining cost of $1978/oz. It estimated pre-tax free cash flow of $2.25 billion, a pre-tax net present value of $1.43b, and an internal rate of return of 69 per cent, with a post-tax net present value of $965m and an internal rate of return of 55 per cent based on a gold price of $5200/oz. This increased to pre-tax free cash flow of $2.96b, pre-tax net present value of $1.92b and IRR of 86 per cent, and post-tax net present value of $1.31b and IRR of 68 per cent based on a spot gold price of $6100/oz. This meant a short payback period of 1.9 years post-tax at a $5200/oz gold price, and 1.5 years post-tax at a $6100/oz gold price from the start of commissioning. The study saw the underground production target increased to 5.7 million tonnes at 4.9g/t, delivering 900,000oz of contained gold, with the updated probable ore reserve estimate being 4.4Mt at 4.8g/t for 674,000oz of contained gold. It estimated a pre-production capital cost of $383m, which included a processing plant, associated infrastructure and underground development, and a $15m contingency on processing infrastructure.