Approvals in Place – Rox Ramps Up Youanmi Underground

Key Concepts

• Permitting: The process of obtaining necessary approvals for mining operations.
• Dewatering: The removal of water from mine pits.
• Abstraction Licenses: Permits to draw water for mine and mill operations.
• Clearing Permits: Approvals for clearing native vegetation for project infrastructure.
• Underground Mining Permit: The crucial permit allowing underground mining activities.
• Burn Cut: A tier-one mining contractor.
• Decline: An underground access ramp.
• Processing Plant: Facility for processing extracted ore.
• Tailings Dam: A structure for storing waste material from processing.
• Mine Development Closure Proposal (MDCP): A proposal for plant construction and site closure.
• Works Approval: Permit for large-scale construction activities.
• Feasibility Study (DFS): Detailed assessment of project viability.
• FID (Final Investment Decision): The decision to proceed with a project based on feasibility.
• Gold Price: Current market value of gold.
• Ounce: A unit of weight, commonly used for precious metals.

Permitting Progress and Next Steps

The company has achieved significant milestones in its permitting process. Earlier this year, they secured dewatering permits for emptying the pits and abstraction licenses for supplying water to the mine and mill. In August, clearing permits for native vegetation were obtained, covering the entire operation including the processing plant and tailings dam. Most recently, the critical underground mining permit was granted, enabling the commencement of underground operations.

The next phase involves obtaining permits for the processing plant and securing works approval. This is a two-part process:

1. Mine Development Closure Proposal (MDCP): This proposal, related to plant construction, will be lodged in November. Approval is anticipated in January of the following year (early 2026).
2. Works Approval: This will be lodged concurrently with the MDCP in November. Operational permits are expected in the first half of next year, potentially earlier.

Upon MDCP approval, site works can begin, including clearing pads and laying foundations for the mill. The works approval will allow for large-scale construction activities and the establishment of a power station.

Site Works and Infrastructure Development

Site works are progressing rapidly. Dewatering commenced in June, with the first pit (United North) dewatered two months later. Preparation works for United North began in September, and the site is now mine-ready. Burn Cut is scheduled to mobilize next Monday, October 27th, with machines arriving on Tuesday, and the workforce starting on the 29th. After a week of site preparation, decline firing in United North is planned for the following week.

For the Main Pit, dewatering is over halfway complete and proceeding well. The pit is expected to be dewatered by January.

Camp Expansion:

• The first 60-room camp expansion is well underway, adding to existing facilities which include 51 rooms, sports courts, and a swimming pool.
• A commitment has been made for a further 240-room expansion, comprising 120 permanent and 120 temporary rooms to support construction. This expansion is targeted to commence in January-February, shortly after a Final Investment Decision (FID).

Definitive Feasibility Study (DFS) and Financial Outlook

The Definitive Feasibility Study (DFS) is progressing rapidly, with all final deliverables due within the next week. The DFS is scheduled for release in November.

Current gold prices are over $6,300 per ounce. The project is projected to achieve a margin of 445,000 ounces on a plus 100,000 ounces per year producer. The anticipated cash flows are described as "pretty exciting."

Conclusion

The company is in an exciting period with significant permitting achievements, including the crucial underground mining permit. Site works are advancing, with dewatering and preparation for mining well underway. The upcoming DFS release and strong gold prices indicate a positive financial outlook, with substantial cash flows expected. The focus now shifts to securing processing plant permits and commencing large-scale construction activities.