Rox’s Pathway to Production

Key Concepts

• DFS (Definitive Feasibility Study): A comprehensive study to determine the viability of a mining project.
• FID (Final Investment Decision): The commitment to fund and proceed with a project’s construction.
• EPC (Engineering, Procurement, and Construction): A common form of contracting arrangement for large-scale projects.
• Long Lead Items: Equipment or materials requiring extended procurement times.
• Vent Decline: A decline (tunnel) specifically for ventilation purposes in an underground mine.
• Stockpiles: Accumulated reserves of ore ready for processing.
• Dewatering: Removing water from a mine site.
• Grow Control & Growth Drilling: Drilling programs focused on expanding the known orebody and increasing confidence in resource estimates.

Underground Development & Mining Progress

The project has initiated early works with underground development preceding the DFS and FID, aiming to commence drilling ahead of the mining schedule and build stockpiles before the processing plant is operational in mid-2027. Currently, underground development has reached approximately 420 meters, with good progress in the Burn Cup area. Full-time mining began in mid-December, continuing through the Christmas period. Both the main decline at United North and the ventilation declines are established, with the vent decline nearing completion in a few weeks. The purpose of the vent decline is to improve airflow, accelerate mining, enhance working conditions, and optimize operations.

Processing Plant & Mill Studies

Mill studies, conducted alongside the DFS, have identified critical long lead items for the processing plant: the fine grind circuit, the albium circuit, ball mills, and oxygen plants. Except for the fine grind mill, all these items are currently out for tender. A contract for the fine grind mill has already been awarded to Glenor Technologies in December, with delivery expected in Australia late this year for commissioning in mid-2027. An EPC process is underway for the remaining items, with contract awards anticipated in the coming weeks to initiate processing plant construction. Front-end engineering works, started in early December, are focused on optimizing the plant’s startup and delivery timeframe.

Permitting & Approvals

Securing necessary permits is a key focus. The mine development closure proposal for the processing plant is currently under assessment, with a decision expected this quarter. Works approvals are due to be lodged shortly, with a return anticipated in Q2. These approvals are crucial for the large-scale construction of the processing plant, tailings dam, and associated infrastructure.

Financing & Investment Decision

The debt financing process is progressing, with independent technical experts collaborating with banks. The target is to be in a position for debt approval by February, which will then trigger the Final Investment Decision (FID) and the formal commencement of processing plant construction.

Pit Dewatering & Decline Refurbishment

Significant progress is being made with pit dewatering. Rapid water level reduction is occurring in the main pit, with the south end now empty. The main decline is only 9-10 meters below the current water surface, expected to be exposed in February. This will enable the refurbishment of the old decline and the commencement of mining to the Polar decline in United North, anticipated late this quarter or early next quarter. The first ore from the Youbody area is expected to be extracted shortly after.

Drilling Programs

Drilling activities are planned in phases. Surface rigs are scheduled to arrive this quarter, initiating drilling and exploration work. Underground drilling will commence late this quarter or early next quarter, focusing on ore control and growth drilling to enhance confidence in the mine plan and build stockpiles, ultimately supporting the delivery of the new gold project.

Key Metrics & Timeline

The company emphasizes maintaining its established delivery timeframes as a key metric for tracking progress. The overall pathway to production remains consistent with initial projections.

Notable Quote: “Our pathway to production really is still our key metrics to watch. Our delivery time frames pretty well haven't changed over it.” – Speaker (referring to the importance of adhering to the project timeline).

Synthesis/Conclusion

The project is advancing on multiple fronts, demonstrating significant progress in underground development, processing plant planning, permitting, and financing. The proactive approach of initiating underground mining and securing long lead items aims to mitigate startup risks and ensure a smooth ramp-up to production in mid-2027. The successful completion of permitting and debt financing are critical milestones in the near term, paving the way for full-scale construction and the realization of the gold project. The ongoing drilling programs are essential for resource confirmation and future growth potential.