GEORGE TOWN, Cayman Islands,
April 6, 2021 /CNW/ - Vox Royalty
Corp. (TSXV: VOX) ("Vox" or the
"Company"), a high growth precious metals focused royalty
company, notes recent announcements from royalty operating
partner Jangada Mines plc (LON: JAN, "Jangada"), operator of
the Pitombeiras vanadium project in Ceará State Brazil, regarding
the release of a Preliminary Economic Assessment ("PEA"),
submission of an application for a trial mining license and
management guidance for first production in Q1 2022.
Vox holds a 1% Net Smelter Return ("NSR") royalty on the
Pitombeiras vanadium project, which was transferred to an affiliate
of Jangada when the Pedra Branca platinum group metals project
tenure was split between ValOre Metals Corp. and Jangada in 2019.
Following this asset split Vox retained a 1% NSR across both the
Pitombeiras and Pedra Branca projects.
Summary of Development Update
- Pitombeiras' maiden PEA delivers robust project economics for a
6 year operation at 1.1Mtpa production rate:
-
- US$106.5 million post-tax Net
Present Value ("NPV") (at 8% discount rate);
- US$271.3 million total gross
revenue forecast at a final estimated selling price of US$104.75/dry metric tonne;
- 317.8% post-tax Internal Rate of Return ("IRR");
- Initial capital cost of US$9.5m;
- Payback time – 3 months;
- Further upside to economics expected to be delivered in a
revised PEA including potential expanded mineral resources upon
conclusion of ongoing drilling programme anticipated in Q2
2021;
- Simplicity of operations and processing route makes the project
amenable to a fast-track approach to production and cash flow with
first production anticipated for Q1 2022;
- On March 19, 2021 Jangada
announced that it had submitted an application to the Brazilian
National Mining Agency ("Agência Nacional de Mineração" or
"ANM") to obtain a trial mining licence ("Guia de
Utilização" or "GU") that once approved, will allow for the
extraction of 300,000 tonnes of Ferrovanadium (FeV) bearing
material per year from Jangada's exploration licenses with the
purpose of continuing to evaluate the technical aspects and
economic benefits of the Pitombeiras Project.
Kyle Floyd, Chief Executive
Officer stated, "Vox assumed the Pitombeiras royalty in 2019
when the Pitombeiras project claims were split from the Pedra
Branca PGM project. Vox investors, with the PEA results, have
visibility around potential life of mine royalty revenues of over
US$2.5M, with vast expansion
opportunity, and potential to commence production as early as Q1
2022. This update certainly exceeded expectations. Vox
congratulates the Jangada team on these key development milestones
at Pitombeiras. We look forward to sharing more updates with Vox
investors on the Pitombeiras asset as the PEA is updated in Q2
2021, feedback is received on the trial mining license application
in Q3 2021 and first production is targeted for Q1 2022. This
exciting asset update demonstrates the embedded organic growth that
Vox shareholders continue to benefit from, through our portfolio of
50 royalty and streaming assets that are being actively progressed
by well financed and experienced operators."
Summary of Preliminary Economic Assessment
- The PEA is based only on the initial resource
estimate(1) announced on August
19, 2020 ("Initial Resource") and at this stage of
development, has focused only on evaluating a Direct Shipping Ore
("DSO") operation for the sale of a saleable magnetite
concentrate containing a minimum of 62% Fe and additional credit
from 25% contained V2O5 in furnace slags.
- Operational highlights of the PEA include:
-
- 1.1Mtpa DSO production rate;
- Life of Mine ("LOM"): approx. 6 years based on Initial
Resource;
- Total LOM Mineable Resources: 5.5Mt based on Initial
Resource;
- LOM average strip ratio: 0.64 t/t Waste/Ore;
- Processing by crushing and screening, and dry magnetic
concentration, producing a marketable Ferrovanadium ("FeV")
concentrate;
- Total LOM production of 2,590,000 tonnes of 62% Fe and 25%
V2O5 contained in furnace slags
- Financial highlights of the PEA include:
-
- US$106.5 million post-tax NPV (at
an 8% discount rate);
- 317.8% post-tax IRR;
- US$136.3 million post-tax,
undiscounted cash flow;
- US$271.3 million total gross
revenue;
- Post-tax payback period of 3 months;
- US$9.5 million initial capital
cost;
- US$1.98 per tonne mined average
operating cost;
- US$4.62 per tonne processed
average operating cost.
- Pitombeiras Project Upside Potential
-
- Upon the conclusion of ongoing additional bench and laboratory
scale dry magnetic separation tests, Jangada expects to increase
its level of confidence on V2O5 recoveries,
allowing management engagement on the next level of constructive
discussions with traders and off-takers.
- No TiO2 ("titanium dioxide") potential credits have
been considered in the economics of the PEA.
- The ongoing drilling programme at Pitombeiras has demonstrated
that the vanadiferous titanomagnetite ("VTM") mineralisation at the
Pitombeiras North target extends in both N-NE and N-NW directions
and continues to be open along the strike.
- The total resources considered in the PEA are based on two out
of eight known targets selected based on ground magnetic
survey.
- The PEA will benefit with increased resource tonnage to be
prepared upon conclusion of ongoing drilling programme.
- The PEA was prepared by GE21 Consultoria Mineral and is
compliant with National Instrument 43-101 ("NI 43-101").
Potential Development Timeline
- Jangada management has shared the following development
milestones for the Pitombeiras project in its Q1 2021 disclosure
(link to PEA and Trial Mining License releases):
-
- February 16, 2021 –
Maiden PEA released for Pitombeiras project
- March 19, 2021 –
Application Submitted for Trial Mining License
- Q2 2021 – further upside to economics expected to
be delivered in revised PEA including potential expanded mineral
resources upon conclusion of ongoing drilling programme
- Q3 2021 – feedback from ANM anticipated on the Trial
Mining License application
- Q1 2022 – first production from Pitombeiras
targeted
For further information on the Pitombeiras project please refer
to Jangada's website: http://www.jangadamines.com/
Qualified Person
Timothy J. Strong, MIMMM, of
Kangari Consulting Limited 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 50 royalties and streams spanning nine
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, statements regarding
expectations for the timing of commencement of 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 and future royalty payments derived from various
royalty assets of Vox.
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.
Technical Notes
(1)
|
The MRE has been
prepared in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and
Reserves: Definitions and Guidelines, May 10, 2014 (CIM, 2014), by
Mauricio Prado, MSc. Geologist and Qualified Person, as defined by
NI 43-101 guidelines, with effective date of 2 August
2020.
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(2)
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Notes to accompany
Mineral Resource table for the Pitombeiras Project:
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a.
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The Mineral Resource
is limited to within the tenement boundaries. Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability. There has been insufficient exploration to define the
Inferred Resources tabulated above as an Indicated or Measured
Mineral Resource. There is no guarantee that any part of the
mineral resources discussed herein will be converted into a mineral
reserve in the future.
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b.
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The mineral resource
estimate follows current CIM definitions and guidelines for mineral
resources.
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c.
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Mineral Resources are
reported using a cut-off grade of 0.25% V2O5 %, based on the
following assumptions: Base case resource open pit shell with a 45º
pit slope, metal price of US$10.00/lb V2O5, mining cost of
US$2.78/t, processing cost of US$20.00/t, general and
administrative (G&A) costs of US$1.00/t, product transport
costs of US$2.00/t, metallurgical recovery of 80%, mining dilution
of 10% and mining recovery of 95%.
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d.
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Mineral Resources
have been reported on a dry tonnage basis. Discrepancies may occur
due to rounding. Mineral Resources are reported with an effective
date of August 2, 2020. The Qualified Person for the estimate, as
defined by NI 43-101, was Mauricio Prado, MSc. Geo. MAIG
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SOURCE Vox Royalty Corp.