TORONTO, Nov. 18, 2021 /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"), Black
Cat Syndicate Limited (ASX: BC8) ("Black Cat"), Silver Mines
Limited (ASX: SVL) ("Silver Mines"), Karora Resources Inc.
(TSX: KRR) ("Karora"), ValOre Metals Corp. (TSXV: VO)
("ValOre"), and Quantum Graphite Limited (ASX: QGL)
("Quantum").
Spencer Cole, Chief Investment
Officer stated, "We are excited by yet another month of
consistent progress across our royalty assets, particularly by the
impending release of the South Railroad feasibility study in
Nevada and pre-construction
progress at Bulong in Western
Australia. Our royalty projects continue to exceed Vox
management expectations in terms of their pace of development, the
volume of discovery drilling and higher likelihood of royalty
revenue for Vox. Based on this strong operator progress, Vox
management expects that 2022 has potential to be a record year for
discovery drilling, engineering studies being released and projects
moving into production."
Key Development Updates
- Update on feasibility study, permitting and construction
financing at the South Railroad gold project in Nevada by Gold Standard Ventures;
- First production guidance reiterated for H2 2022 at Bulong gold
project by Black Cat; and
- Substantial drilling updates at the Bowdens silver project by
Silver Mines, the Higginsville mine by Karora, the Pedra Branca
platinum group metals ("PGM") project by ValOre, and the
Uley graphite project by Quantum.
South Railroad (Pre-Feasibility) – Feasibility Study
Expected Q1 2022
- Vox holds a 0.633% net smelter royalty with advance minimum
royalty payments over part of the South Railroad gold project,
which is located in the prolific Carlin
Trend of Nevada;
- Vox received initial advance minimum royalty payments of
~C$100,000 from the South Railroad
royalty in October 2021;
- On November 10, 2021, Gold
Standard Ventures announced:
-
- It anticipates that the feasibility study for the South
Railroad project will be completed in Q1 2022;
- In-fill drilling results at the Pinion deposit indicates the
possibility of converting approximately 350,000 contained ounces of
gold for inclusion in the feasibility mine plan in Pinion Phases 4
and 5, expected to be majority royalty-linked based on historical
disclosure by Gold Standard Ventures;
- Expected timing of the Record of Decision permit is anticipated
to be in Q1 2023; and
- It anticipates commencing the construction capital financing
process in conjunction with the release of the feasibility study in
Q1 2022.
- Vox Management Summary: The South Railroad project is
advancing in line with Vox management expectations based on due
diligence completed for the royalty acquisition in June 2021. The majority of the additional
~350,000 ounces expected in Pinion Phases 4 and 5 are expected to
be royalty-linked and to generate meaningful royalty revenue for
Vox. 2022 promises to be a transformational year for South Railroad
with the release of a feasibility study, construction financing
process updates and permitting progress.
Bulong (Pre-Construction) – Production on Track for Second
Half of 2022
- Vox holds a 1% net smelter royalty over part of the Bulong gold
project;
- On October 29, 2021, Black Cat
announced:
-
- that it is in the process of securing all items needed at the
processing facility to allow for production to commence in the
second half of 2022;
- 89 holes were drilled at the royalty-linked Myhree deposit in
Q3 2021 for a total of 3,217m of
grade control drilling; and
- In Q4 2021 Black Cat's key planned activities are 20,000m of drilling targeting regional
discoveries, resource upgrades and maiden ore reserves and the
completion of a Pre-Feasibility Study.
- Vox Management Summary: Black Cat management continues to
rapidly advance the Bulong project towards first production in 2022
alongside an aggressive +80,000m
regional discovery drilling program. Management expects that Vox
shareholders can look forward to a combination of development and
discovery newsflow regarding this highly prospective gold project
in Western Australia over the
coming months.
Substantial Drilling Updates
- Bowdens Silver: Vox holds a 0.85% gross revenue royalty
on the Bowdens silver-lead-zinc project and a 1% gross revenue
royalty over surrounding regional exploration Tenure.
-
- On October 26, 2021, Silver Mines
announced that drilling is to continue into 2022 with four
diamond rigs operational targeting a maiden underground mineral
resource and scoping study of underground mining scenarios;
- Higginsville Gold (Dry Creek): Vox holds a price-linked
production royalty(1) that is equal to A$0.60/gram of gold produced at current gold
prices (effective 0.85% net smelter return royalty economics) on
part of the Higginsville gold mine held by Karora, covering part of
the Hidden Secret, Mousehollow and Paleochannels deposits.
-
- On November 8, 2021, Karora
announced that at Higginsville, resource definition drilling
during Q3 2021 was focused on supporting life of mine objectives
for the three active mining operations, including testing
extensions to the Hidden Secret open pit and Mousehollow Mineral
Resource, with results expected before the end of Q4 2021;
- Pedra Branca PGM: Vox holds a 1% net smelter royalty on
the Pedra Branca PGM project.
-
- On October 20, 2021, ValOre
announced that 19 holes were drilled totalling 2,204 metres,
with a primary focus of resource expansion. ValOre's VP of
Exploration, Colin Smith, stated
"2021 drilling at Santo Amaro has greatly advanced the
interpreted geological model for the resource-associated ultramafic
package, allowing for more targeted resource expansion drilling and
a higher level of confidence in future resource estimations.";
and
- Uley Graphite: Vox holds a 1.5% gross revenue royalty on
the Uley graphite project.
-
- On October 21, 2021, Quantum
announced that it had successfully completed its Eastern
Conductor drilling program. The program represents extensional
drilling immediately to the east of the proposed Uley 2 open pit.
The option of extending Uley 2 to the east has a number of
advantages including the speedy pathway to a very low-cost
extension of the Uley 2 open pit; and
- On November 1, 2021, Quantum
announced that recent assay results returned consistent total
graphitic carbon grades and intercept widths. These intercepts are
outside of the current Uley 2 resource, highlighting the
significant potential for future resource growth.
- Vox Management Summary: Vox is unique in the emerging
royalty industry in having ~20 separate royalty projects with
active exploration programs, many of which are the flagship asset
of their listed operating company. 2022 is shaping up to be a
record year of drilling across the Vox royalty asset portfolio,
which increases the probability of further discoveries and medium
to long term royalty cashflow for Vox.
Normal Course Issuer Bid Renewal
The Company's normal course issuer bid ("NCIB") is being
renewed after the existing NCIB expires on November 18, 2021. The current NCIB provides Vox
with the option to purchase up to 1,628,289 common shares as
appropriate opportunities arise from time to time. Under the terms
of the renewed NCIB, the Company may repurchase for cancellation up
to 1,968,056 common shares, being 5% of the total number of
39,361,137 common shares outstanding as at November 11, 2021. The purchases are to be made
at market prices through the facilities of the TSXV or other
recognized Canadian marketplaces during the period November 19, 2021 to November 18, 2022.
The Company believes that, from time to time, the market price
of its common shares does not reflect the Company's underlying
value and future prospects and that, at such times, the purchase of
the Company's common shares represents an appropriate use of its
financial resources and will enhance shareholder value. Independent
Trading Group (ITG), Inc. has been appointed by Vox as its broker
to assist with purchases pursuant to the normal course issuer
bid.
In the last twelve months, the Company has purchased 804,400
common shares pursuant to its NCIB at a weighted average price of
C$2.89 per common share through the
facilities of the TSXV and other recognized Canadian
marketplaces.
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 construction at and
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,
requirements for regulatory approvals and the ability and intention
of the Company to make a normal course issuer bid and to repurchase
its common shares for cancellation.
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:
- 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 September 2021 average
gold price of A$2,330/ounce the
effective royalty rate for September
2021 was A$0.67/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$1.34/tonne of ore treated. The Dry Creek
royalty economics are approximately equivalent to those of a 0.85%
net smelter return royalty.
SOURCE Vox Royalty Corp.