GEORGE TOWN, Cayman Islands,
June 22, 2021 /CNW/ - Vox Royalty
Corp. (TSXV: VOX) ("Vox" or the
"Company"), a high growth precious metals focused royalty
company, is pleased to provide recent funding and exploration
updates from royalty operating partners Genesis Minerals Limited
(ASX: GMD) ("Genesis"), Jangada Mines plc (AIM: JAN)
("Jangada"), Corazon Mining Limited (ASX: CZN)
("Corazon"), Metalicity Limited (ASX: MCT)
("Metalicity"), and Karora Resources Inc. (TSX: KRR)
("Karora").
![Vox Royalty Corp. Logo (CNW Group/Vox Royalty Corp.) Vox Royalty Corp. Logo (CNW Group/Vox Royalty Corp.)](https://mma.prnewswire.com/media/1538099/Vox_Royalty_Corp__Vox_Provides_Exploration_Updates_from_Operatin.jpg)
Riaan Esterhuizen, Executive Vice
President – Australia stated,
"Yet another month of exciting royalty operator partner newsflow
for Vox shareholders relating to discoveries, resource expansions,
project financing and ESG best practice. We are particularly
excited by the exceptional Puzzle North drilling results including
60m @ 3g/t and the Pitombeiras 221%
mineral resource increase. Vox investors can look forward to a
catalyst-rich H2 2021, including maiden mineral resources for
royalty-linked Puzzle North, McTavish and mining studies for
Lynn Lake Nickel and
Pitombeiras."
Summary of Exploration Updates
- Growth in Puzzle North discovery with exceptional new wide
shallow intercepts by Genesis;
- Resource estimate update at Pitombeiras and 221% increase in
Measured and Indicated Resources(3);
- Commencement of a modern mining study for the potential restart
of mining operations at the Lynn
Lake nickel-copper-cobalt sulphide project by Corazon;
- Capital raising to fund exploration activities at the Kookynie
gold project by Metalicity; and
- Partnership for Karora to become one of the world's first net
zero greenhouse gas junior gold mining companies.
Kookynie (Pre-Feasibility) – Exceptional Growth in Puzzle
North Discovery
- Vox holds a A$1/t production
royalty on part of the Kookynie gold project1;
- On June 15, 2021, Genesis
announced that:
-
- Reverse circulation drilling continues to confirm the potential
to grow all key deposits which form the Ulysses Gold Project,
including the royalty-linked Puzzle North deposit;
- Puzzle North has been expanded with significant new shallow
results, which are some of the most outstanding drilling results
ever reported by Genesis in the history of the Ulysses Project,
including the following drilling highlights:
-
- 60m @ 3.03g/t Au from
106m (hole 21USRC855)
- 84m @ 1.98g/t Au from
84m (hole 21USRC912)
- 40m @ 2.52g/t Au from
44m (hole 21USRC911)
- Management of Genesis commented that:
-
- "The Puzzle North discovery is developing into a significant
zone of shallow gold mineralisation that clearly has the makings of
a new open pit mine."
- "The recent drilling may have a significant impact on our
development plan – particularly the exciting shallow results at
Puzzle North and the high-grade zone at Admiral deeps – and we are
considering the possibility of including these new elements in our
Feasibility Study."
- Vox Management Summary: Puzzle North is shaping up to be an
exciting gold discovery and operator guidance suggests that this
has the potential to be a new open pit mine, which may be included
in the upcoming Ulysses feasibility study. This exploration royalty
acquired in 2020 has growing potential to generate revenue for Vox
shareholders.
Pitombeiras (PEA Stage) – 221% Increase in Measured &
Indicated Resources(3)
- Vox holds a 1% net smelter royalty over the Pitombeiras
vanadium-iron ore project;
- On June 16, 2021, Jangada
announced an updated resource estimate(3) at Pitombeiras
North and South Targets, with the following highlights:
-
- 221% increase in Measured and Indicated Resources ("M&I")
based on two of eight identified targets (see technical note 3
below for further detail):
-
- M&I Resources of 5.10Mt at 0.46% V2O5, 9.04% TiO2 and
46.06% of Fe2O3
- Inferred Resource of 2.33Mt at 0.41% V2O5, 8.26% TiO2 and
43.18% of Fe2O3
- Exploration potential remains open along strike and at depth -
Jangada has established a target to potentially delineate 10Mt of
total mineral resources.
- Drilling programme at Goela target started in late April 2021 and is expected to be concluded by end
of June 2021
- Updated Preliminary Economic Assessment ("PEA") to be completed
in Q3 2021 following the delivery of the updated mineral resources
for both Pitombeiras and Goela, which will include new
metallurgical tests.
- Vox Management Summary: A resource increase of >200% is
uncommon in the mining industry and generally indicates strong
momentum in exploration success. The updated Pitombeiras PEA in Q3
2021 will provide guidance for potential royalty revenue that could
commence as early as Q1 2022, based on prior guidance from operator
Jangada. The pace of this royalty development continues to exceed
Vox management expectations
Lynn Lake Nickel (Exploration)
– Mining Studies Commence at Lynn Lake Nickel Project
- Vox holds a 2% gross revenue royalty (post initial capital
recovery) on part of the Lynn Lake
nickel-copper-cobalt project ("Lynn Lake");
- On May 26, 2021, Corazon
announced:
-
- International mining consultants Palaris have been engaged to
undertake mining studies for the potential recommencement of mining
operations at Lynn Lake with
modern mining and processing practices - scope of work
includes:
-
- Undertaking individual bridging studies in key areas to
identify a viable basis of project design before progressing into
future study phases; and
- Determining the favoured path forward, utilising "best-fit"
mining and processing techniques to deliver an attractive,
long-life mining operation at Lynn
Lake.
- Studies are expected to be completed in the following quarter
and will feed into more detailed work designed to advance the
development of the Lynn Lake Project.
- Vox Management Summary: Lynn
Lake was mined for 24 years until 1976 and was one of
North America's major nickel
operations, producing 206,200t nickel and 107,600t copper. Since
1976 mining studies undertaken for a potential re-start of the mine
have only considered historical mining and processing methods. This
modern mining study accelerates this royalty from exploration to
early development.
Kookynie (Advanced Exploration) – Equity Raise for
Advancement of Kookynie Gold Project
- Vox holds a A$1/t ore production
royalty (with gold grade escalator1) on part of the
Kookynie gold project held by Metalicity; and
- On June 15, 2021, Metalicity
announced that it has received firm commitments for a strongly
supported A$3,000,000 equity raise.
The funds raised will be used to advance the Kookynie gold project,
continue to develop its maiden JORC resource estimate (including
royalty-linked McTavish deposit), together with providing working
capital and funding for potential new opportunities.
- Vox Management Summary: This equity raise will fund a maiden
resource estimate for the McTavish gold deposit on Vox's royalty
tenure, which should re-rate the value of this exploration
royalty.
Higginsville – Dry Creek (Producing) – Partnership to Become
Net Zero Greenhouse Gas Emissions Company
- Vox holds a price-linked production royalty(2) that
is equal to A$0.60/gram gold produced
at current gold prices (effective 0.85% net smelter return
economics) on part of the Higginsville gold mine held by Karora;
and
- On June 14, 2021, Karora
announced a new partnership with The Net Zero Company to commit to
and to implement a pathway to becoming one of the world's first net
zero junior gold mining companies, as follows:
-
- Karora will work with The Net Zero CompanyTM to seek
to ensure its approach to setting and achieving GHG reduction
targets is inline with best practices based on available science to
achieve the aspirations of the Paris Agreement. As the program is
further outlined and targets are identified, updates will be
provided to the market.
- Karora's initial focus will be on Scope 1 and 2 emissions
reductions, followed by Scope 3 emissions reductions to work toward
its goal of reaching True Net Zero (Scope 1, 2 and 3) status.
- Progress on the GHG reduction program will be included in
Karora's inaugural ESG Report which is expected in early 2022.
- Vox Management Summary: This progressive partnership
demonstrates Environmental, Social & Governance (ESG) best
practice by Karora management. The quality, responsibility and
track record of the Karora management team is what Vox looks for in
our royalty operating partners.
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 over 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, 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 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 References & Notes:
- Kookynie Royalty is split in two separate terms:
- Kookynie (Melita) Royalty –
which covers the Puzzle Deposit: A$1/t production royalty >650Kt cumulative ore
mined and treated
- 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)
- The Dry Creek royalty rate is A$0.12 per gram of gold per dry metric tonne of
royalty ore, which is defined as mineralised material mined from
the applicable tenements which contains an average grade greater
than 1 gram of gold per dry metric tonne and not classified as
waste or low grade, and the royalty is adjusted monthly as follows:
- Royalty rate per gram of gold = A$0.12 x (price of gold per gram at Perth Mint /
A$14)
- At the April 2021 average gold
price of A$2,277.51/ounce the
effective royalty rate for April 2021
was A$0.63/gram gold per tonne of ore
treated. For example, for royalty ore mined at a grade of 2.0g/t
the effective royalty rate would be A$1.26/tonne of ore treated. The Dry Creek
royalty economics are approximately equivalent to those of a 0.85%
net smelter return royalty.
- The Pitombeiras Mineral Resource 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 31
May 2021.
- Notes to accompany Mineral Resource for the Pitombeiras
Project:
- 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. 38 diamond
drillholes were used in the resource estimate representing a total
of 2,875.9m of drilling.
- The mineral resource estimate follows current CIM definitions
and guidelines for mineral resources.
- Mineral Resources are reported using a cut-off calculated
assuming only the blocks within a conceptual open pit shell
optimizes by NPV Scheduler that uses the following assumptions:
iron ore concentration (62%/65%Fe, +V2O5) price of US$105.75/t, 80% of global mass recovery of Fe to
the concentrate, US$2.78/t of mining
cost (ROM), processing costs of US$6.00/t, mine dilution of 5%, mine recovery
95%, and final slope angle of 56°to the open pit. Mineral Resources
have been reported on a dry tonnage basis. Discrepancies may occur
due to rounding.
- Vanadium titanomagnetite Mineral Resources are reported with an
effective date of May 31st, 2021. The
Qualified Person for the estimate, as defined by NI 43-101, was
Mauricio Prado, MSc. Geo. MAIG.
SOURCE Vox Royalty Corp.