TORONTO,
March 8, 2022
/CNW/ - Vox Royalty Corp. (TSXV: VOX) (OTCQX: VOXCF)
("Vox" or the "Company"), a high growth precious
metals focused royalty company, is pleased to provide recent
development and exploration updates from royalty operating partners
Gold Standard Ventures Corp. (TSX: GSV) ("Gold Standard
Ventures"), Genesis Minerals Limited (ASX: GMD)
("Genesis"), Develop Global Limited (ASX: DVP)
("Develop"), Norwest Minerals Limited (ASX: NWM)
("Norwest"), and Alamos Gold Inc. (TSX: AGI)
("Alamos").
![Vox Royalty Corp. Logo (CNW Group/Vox Royalty Corp.) Vox Royalty Corp. Logo (CNW Group/Vox Royalty Corp.)](https://mma.prnewswire.com/media/1761191/Vox_Royalty_Corp__VOX_PROVIDES_DEVELOPMENT%C2%A0__EXPLORATION_UPDATES.jpg)
Spencer Cole, Chief Investment
Officer stated: "The past month of royalty operator newsflow
includes the exciting release of the South Railroad feasibility
study, ongoing exploration success at Sulphur Springs, Puzzle North
and Bulgera, capped off by consistent development guidance for
Lynn Lake. Each of these projects
are being aggressively progressed by well-capitalized operators
towards near-term resource updates and development decisions. 2022
continues to be shaping up as a record year for the Vox royalty
portfolio based on these developments."
Key Development Updates
- Robust feasibility study released for the South Railroad gold
project in Nevada by Gold Standard
Ventures;
- Exceptional drilling results set to underpin growth at Puzzle
North gold project by Genesis;
- Strong drilling results at the Sulphur Springs copper-zinc
project by Develop are likely to result in a significant resource
upgrade;
- Positive drilling results at the Bulgera gold project
by Norwest; and
- Significant capital budget planned in 2022 by Alamos for the
Lynn Lake (MacLellan) gold
project.
South Railroad (Pre-Feasibility) – Robust Feasibility Study
Released(1)
- Vox holds a 0.633% net smelter return royalty with advance
minimum royalty payments over key portions of the South Railroad
gold project, which is located in the prolific Carlin Trend of Nevada;
- Vox has been receiving advance minimum royalty payments
from Gold Standard Ventures since October
2021;
- On February 23, 2022, Gold
Standard Ventures announced the following feasibility study
results:
-
- After-tax IRR of 62% and NPV5 of
US$487M at Spot Gold Price
(US$1,899.20 per ounce) and
after-tax IRR of 44% and NPV5
of US$315M at US$1,650 per ounce gold ("Base Case
Gold Price");
- Payback of 1.6 years at Spot Gold Price and 1.9 years at
Base Case Gold Price;
- 29% increase in Mineral Reserves to 1.6 million gold
ounces;
- 10.5-year operating life with total gold production of
over 1 million ounces, with an average gold production of 152,000
ounces over the first four years;
- Launch of construction financing process, targeting 75%
from non-equity sources, to be completed this year in advance of
final construction permits; and
- Orion Mine Finance to provide Gold Standard Ventures with
a term sheet of up to $200 million to
support the construction of the South Railroad Project.
- Vox Management Summary: These compelling feasibility study
results closely match Vox management's estimates formed during due
diligence for the South Railroad rancher royalty. This high-return
project is being fast-tracked towards a first production target in
2024, based on Gold Standard Ventures management guidance.
Kookynie (Pre-Feasibility) – Exceptional Drilling Results at
Puzzle North Discovery
- Vox holds a A$1/t production
royalty on part of the Kookynie gold project(2);
- On February 3, 2022, Genesis
announced:
-
- Outstanding new results from reverse circulation
("RC") drilling across multiple areas,
confirming potential to expand the mineral resource at the Ulysses
Gold Project near Leonora in Western Australia;
- Broad, high-grade zones of gold mineralisation
intersected from shallow depths in RC drilling at the Puzzle
North Discovery, including:
-
-
- 21USRC1186: 27m @ 8.18g/t
Au from 30m;
- 21USRC1190: 34m @ 13.36 Au from
42m, including 1m @ 382.6g/t Au from 68m; and
- 21USRC1192: 29m @ 2.91g/t
Au from 52m;
- Drilling at Puzzle North has now defined mineralisation over
600m of strike and up to 100m width, with the mineralisation remaining
open both at depth and along strike;
- Mineralisation at the southern end of the Puzzle pit
extended over 200m south with results
including:
-
- 21USRC1114: 11m @ 2.20g/t
Au from 82m;
- 21USRC1119: 4m @ 9.07g/t Au
from 92m;
- 21USRC1123: 5m @ 5.98g/t Au
from 79m; and
- 21USRC1127: 47m @ 1.07g/t
Au from 95m;
- A large drilling program is currently being planned for the
Puzzle North to Puzzle corridor.
- Vox Management Summary: This exciting gold exploration
royalty that Vox acquired for less than A$150k in 2020 is being rapidly drilled to
include the royalty-linked Puzzle North discovery in an expanded
feasibility study at the Ulysses gold project. The potential
development timeline for this project from exploration to
development continues to exceed Vox management
expectations.
Sulphur Springs (Pre-Construction) – Strong Drilling Results
Point to Significant Resource Upgrade
- Vox holds a A$2/tonne production
royalty (capped at A$3.7M) on the
Sulphur Springs copper-zinc deposit and an uncapped A$0.80/tonne production royalty on the Kangaroo
Caves deposit, which is part of the combined Sulphur Springs
project;
- On February 10, 2022, Develop
announced:
-
- It has now received ~60% of the assays from the
A$10M resource infill
and exploration drilling program at Sulphur
Springs;
- The drilling has been highly successful, with numerous
high-grade mineralisation intersections of more than
50m, significantly thicker than
anticipated and with two of the intercepts being the thickest
intersections achieved in the project's history;
- The results point to a substantial conversion of Inferred
Resources to the higher confidence Indicated Resource
classification;
- The upgrade in Indicated Resource classification will
pave the way for Develop to update reserves, mine development
plans, project costings and to finalise
funding options;
- Exploration drilling has also returned outstanding
results, paving the way for an increase to the total
resource;
- A resource update is scheduled for mid-2022;
and
- Preparations for construction of the exploration decline
are proceeding rapidly with the approval request submitted. This
will be pivotal because it will enable drilling to be conducted
faster, and cheaper and brings forward capital/access to the
underground deposit.
- Vox Management Summary: Under the new leadership of Northern
Star Resources founder Bill Beament,
the Sulphur Springs project is on track to be expanded in resource
size and fast-tracked into underground decline development within
the next 12 months. This drilling success indicates that the
potential economics of this high-grade copper project are improving
month to month.
Bulgera (Exploration) – New High-Grade Drilling
Results
- Vox holds a 1% net smelter return royalty over the Bulgera gold
project;
- On February 3, 2022, Norwest
announced:
-
- The first three of seven diamond drill holes extend new
high-grade gold lode to beyond 400m
down dip of the shallow Bulgera open pit;
- Drill results included:
-
- BDD21003: 11.3m @ 3.25g/t
gold from 260m
(downhole), including 4m
@ 4.5g/t Au from 260m
and 3.3m @ 5.3g/t Au
from 268m;
- BDD21001: 16.5m @ 1.20g/t
gold from 128m and 3m @ 4.10g/t gold from 166m;
- BDD21002: 6m @ 2.07g/t gold
from 195m;
- It is sourcing a drill rig to undertake the Phase 2 diamond
drill program (targeting March/April
2022) which will test mineralisation to ~700m down-dip of
the Bulgera open-pit; and
- Norwest's CEO, Mr. Charles Schaus commented:
"Assay results from the first 3 diamond holes confirms
that strong gold mineralisation extends beyond 400 metres down dip
of the shallow Bulgera open pit. Once the gold assays from the
remaining 4 diamond holes are received (over the coming weeks), the
Company will commence re-modelling the Bulgera gold resources which
should add considerably to the current, 94,000-ounce, gold resource
reported in April
2020".
- Vox Management Summary: Norwest management are now guiding
towards a remodelled and expanded resource estimate for the
past-producing Bulgera gold project which would increase the value
of Vox's royalty. Oxide ore from Bulgera was last processed at the
nearby Plutonic gold mine in 2004 and given the haul road remains
in place, credible near-term development options are available for
Bulgera.
Lynn Lake (MacLellan,
Feasibility) – 2022 Capital Budget
- Vox holds a 2% gross revenue royalty (post initial capital
recovery) on part of the MacLellan deposit at the Lynn Lake gold project;
- On February 23, 2022, Alamos
announced:
-
- the total capital budget for Lynn
Lake in 2022 is US$14M,
including US$11M for development
activities and US$3M for
exploration;
- Development activities will be focused on environmental
work in support for permitting detailed engineering and other site
access upgrades; and
- The approval of the Environmental Impact Statement for
the project is expected in the second half of 2022, following which
Alamos expects to make a construction decision.
- Vox Management Summary: Alamos management has been very
consistent in guiding towards a 2022 construction decision at
Lynn Lake and is currently guiding
investors towards 2025 first production in its corporate
presentation. Alamos' 2022 capital budget further supports its
consistent project development guidance.
Qualified Person
Timothy J. Strong, MIMMM, of
Kangari Consulting LLC and a "Qualified Person" under National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects, has reviewed and approved the scientific and
technical disclosure contained in this press release.
About Vox
Vox is a high growth precious metals royalty and streaming
company with a portfolio of over 50 royalties and streams spanning
eight jurisdictions. The Company was established in 2014 and has
since built unique intellectual property, a technically focused
transactional team and a global sourcing network which has allowed
Vox to become the fastest growing company in the royalty sector.
Since the beginning of 2019, Vox has announced over 20 separate
transactions to acquire over 45 royalties.
Further information on Vox can be found at www.voxroyalty.com.
Cautionary Note Regarding Forward Looking Information
This news release contains certain forward-looking
statements. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate"
"plans", "estimates" or "intends" or stating that certain actions,
events or results " may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements".
The forward-looking statements and information in this press
release include, but are not limited to, summaries of
operator updates provided by management and the potential impact on
the Company of such operator updates, statements regarding
expectations for the timing of commencement of development,
construction at and/or resource production from various mining
projects, expectations regarding the size, quality and
exploitability of the resources at various mining projects, future
operations and work programs of Vox's mining operator partners, the
receipt of future royalty payments derived from various royalty
assets of Vox, anticipated future cash flows and future financial
reporting by Vox, and requirements for and operator ability to
receive regulatory approvals.
Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of Vox to control or predict, that may cause Vox's
actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and
other factors set out herein, including but not limited to: the
requirement for regulatory approvals and third party consents, the
impact of general business and economic conditions, the absence of
control over the mining operations from which Vox will receive
royalties, including risks related to international operations,
government relations and environmental regulation, the inherent
risks involved in the exploration and development of mineral
properties; the uncertainties involved in interpreting exploration
data; the potential for delays in exploration or development
activities; the geology, grade and continuity of mineral deposits;
the impact of the COVID-19 pandemic; the possibility that future
exploration, development or mining results will not be consistent
with Vox's expectations; accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties or
interruptions in operations; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the
availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions,
including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and
uncertainties.
Vox has assumed that the material factors referred to in the
previous paragraph will not cause such forward looking statements
and information to differ materially from actual results or events.
However, the list of these factors is not exhaustive and is subject
to change and there can be no assurance that such assumptions will
reflect the actual outcome of such items or factors. The
forward-looking information contained in this press release
represents the expectations of Vox as of the date of this press
release and, accordingly, is subject to change after such date.
Readers should not place undue importance on forward looking
information and should not rely upon this information as of any
other date. While Vox may elect to, it does not undertake to update
this information at any particular time except as required in
accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press
release is based on information publicly disclosed by project
operators based on the information/data available in the public
domain as at the date hereof and none of this information has been
independently verified by Vox. Specifically, as a royalty investor,
Vox has limited, if any, access to the royalty operations. Although
Vox does not have any knowledge that such information may not be
accurate, there can be no assurance that such information from the
project operators is complete or accurate. Some information
publicly reported by the project operators may relate to a larger
property than the area covered by Vox's royalty interests. Vox's
royalty interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources and production of a property.
References & Notes:
(1)
|
The South Railroad
Feasibility Study Technical Report will be prepared by M3
Engineering & Technology Corporation ("M3") and filed on
SEDAR within 45 days following February 23, 2022. Matthew Sletten,
PE, Project Manager of M3 and Art Ibrado, PhD, PE, of Fort Lowell
Consulting PLLC, working with M3, are the QPs responsible for the
scientific and technical information in the Gold Standard Ventures
February 23, 2022 news release, as defined by NI 43-101. Thomas L.
Dyer, PE and Jordan Anderson, RM-SME of MDA (a division of RESPEC),
are the QPs for the reserve estimate and mine planning in the Gold
Standard Ventures February 23, 2022 news release, as defined by NI
43-101. Michael S. Lindholm, CPG of MDA (a division of RESPEC), is
the QP for the resource estimates in the Gold Standard Ventures
February 23, 2022 news release, as defined by NI 43-101. Mr.
Ibrado, Mr. Sletten, Mr. Dyer, Mr. Anderson and Mr. Lindholm are
independent of Gold Standard Ventures.
|
(2)
|
Kookynie Royalty is
split in two separate terms:
|
|
a.
Kookynie (Melita) Royalty – which covers the Puzzle Deposit: A$1/t
production royalty >650Kt cumulative ore mined and
treated.
|
|
b.
Kookynie (Consolidated Gold) Royalty – which covers the Puzzle
North Discovery: A$1/tonne (for each Ore Reserve with a gold grade
<= 5g/t Au), for grades > 5g/t Au royalty = ((Ore grade per
Tonne – 5) x 0.5)+1) .
|
SOURCE Vox Royalty Corp.