Vox Royalty Corp. (TSX-V: VOX) (NASDAQ: VOXR) a returns focused mining royalty company, is pleased to provide recent development and exploration updates from royalty operating partners Silver Mines Limited (ASX: SVL), Develop Global Limited (ASX: DVP), Genesis Minerals Ltd. (ASX: GMD), and Black Cat Syndicate Limited (ASX: BC8).
Kyle Floyd, Chief Executive Officer stated: “Building on the momentum of our recent record 2022 preliminary revenues announcement, we are excited to provide meaningful developments on several royalty assets, including that a final permitting determination at the Bowdens silver project is expected in February 2023. In addition, Sulphur Springs is tracking well to be ‘shovel ready’ by mid-2023, the Puzzle North discovery is being fast-tracked towards feasibility by Genesis next quarter and a commercialization decision is expected at the Myhree gold deposit in March 2023. This progress continues to support management’s confidence for organic revenue growth in 2023 and beyond.”
- Bowdens silver project final determination hearing scheduled in February 2023, as well as the appointment of a General Manager for project development and ongoing gold drilling exploration by Silver Mines;
- Technical analysis work is underway by Develop at Sulphur Springs to redesign development plans, revise project costings and explore numerous funding options with the objective of having Sulphur Springs ‘shovel ready’ by the middle of 2023;
- Strong Puzzle North infill drilling results announced by Genesis and a maiden reserve and feasibility study is expected in June 2023, representing only two years from initial discovery to feasibility; and
- Bulong tolling discussions are continuing and a commercialisation decision by Black Cat is expected at the royalty-linked Myhree gold deposit in March 2023.
Bowdens (Development – New South Wales, Australia) – Final Permitting, GM Appointment & Drilling Success
- 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 December 23, 2022, Silver Mines announced:
- The New South Wales Department of Planning and Environment has assessed the Bowdens Silver Project as approvable subject to conditions of consent;
- The DPE has now referred the project to the Independent Planning Commission of New South Wales for final determination;
- The Bowdens Silver Project team has reviewed and has accepted the recommended conditions of consent as provided with DPE’s Assessment Report; and
- According to the DPA Assessment Report: “The Bowdens Silver Project is Australia’s largest undeveloped silver deposit and one of the largest globally. The mine’s 23-year life, including 16.5 years of silver production and by-products of zinc and lead, underpins significant value potential for Bowdens Silver.”
- On January 27, 2023, and January 30, 2023, Silver Mines announced:
- The appointment of Mr. Joel Ray as General Manager of the Bowdens Silver Project;
- The IPC has called a Public Hearing for the 15th, 16th and 17th of February 2023 with a final determination to be made soon thereafter;
- The footprint of gold mineralisation has been expanded in the Southern Gold Zone to 300 metres in strike, 200 metres width and between 15 to 85 metres in thickness; and
- The Company is continuing a 15,000 metre program of diamond drilling at the Bowdens Silver Project and 3,000 metres of regional exploration drilling into the first half 2023.
- Vox Management Summary: With the appointment of a General Manager for mine development and final permitting milestones expected this quarter, Bowdens is rapidly moving towards a construction decision. With continued drilling success, including the emerging Southern Gold Zone, Vox management is optimistic that this major silver project has growing potential to generate royalty revenue for over 20 years, assuming it commences and maintains commercial production.
Sulphur Springs (Feasibility – Western Australia) – Ore Reserve Estimation Underway for mid-2023 Shovel Ready Target
- Vox holds a A$2.00/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 copper-zinc deposit, which is part of the combined Sulphur Springs Project in Western Australia;
- In November 2022, Develop’s company presentation included the following targeted milestones:
- Redesign of the proposed underground mine and open pit using the recently updated resource model to generate an updated reserve by early 2023;
- Update all the project cost inputs (mining, processing and surface infrastructure) by early 2023;
- Produce an updated net present value estimate for the project in the March Quarter 2023;
- To have Sulphur Springs ‘shovel ready’ by the middle of 2023; and
- Advance financing options in second half of 2023.
- On January 19, 2023, Develop announced:
- The Sulphur Springs Project has all the required approvals that allow for full regulatory implementation of the mine development and operation;
- The updated Sulphur Springs Resource paves the way for an increased reserve estimate, optimized mine development plan, revised project costings and the ability to explore numerous funding options, which are all currently underway by the recent key personnel appointments; and
- Develop completed a 15-hole (5,584 metres) Reverse-Circulation exploration drilling program at the Sulphur Springs and Kangaroo Caves deposits, with assay results expected in Q1 2023.
- Vox Management Summary: The high-grade Sulphur Springs copper-zinc project has been fundamentally rescoped by Develop’s experienced new management team led by Northern Star Resources’ founder Bill Beament. The combination of redesigning the mine development plan, revising costings and exploring funding options in the second half of 2023, gives Vox management growing confidence that a construction decision could come as early as the later part of 2023.
Kookynie (Pre-Feasibility – Western Australia) – Puzzle North Infill Drilling Results & Planned Feasibility Study
- Vox holds a A$1.00/tonne production royalty1 on a portion of the Kookynie gold project in Western Australia;
- On December 12, 2022, Genesis’ company presentation provided an overview of:
- The merger of St Barbara Limited (ASX: SBM) and Genesis to form “Hoover House”;
- Maiden reserve over the Leonora gold project open pits, which includes Puzzle, is expected in June 2023; and
- A feasibility study is also expected in June 2023 over the Leonora Gold Project Open Pits (including Puzzle).
- On January 30, 2023, Genesis announced:
- Infill drilling at Puzzle North was completed during the quarter targeting the Inferred portions of the March 2022 maiden resource; and
- Results have confirmed the width and grade of the shallow mineralization, including:
- 40m @ 1.6g/t from 34m (22USRC1460);
- 64m @ 0.9g/t from 35m (22USRC1461);
- 6m @ 5.5g/t from 35m (22USRC1470);
- 33m @ 1.3g/t from 14m (22USRC1473);
- 39m @ 1.0g/t from 36m (22USRC1476);
- 29m @ 1.1g/t from 111m (22USRC1483);
- 34m @ 1.3g/t from 116m (22USRC1484);
- 51m @ 1.5g/t from 14m (22USRC1488);
- 34m @ 1.9g/t from 172m (22USDH0234);
- 20m @ 3.1g/t from 65m (22USDH0235); and
- 99m @ 1.1g/t from 47m (22USDH0236).
- Vox Management Summary: Vox acquired this gold exploration royalty for less than A$150,000 in 2020 and believes that it continues to appreciate in value with the ongoing expansion and feasibility study expected to be released in June 2023 for the royalty-linked Puzzle North deposit. Genesis has fast-tracked Puzzle North from discovery to expected feasibility within 2 years, which is a remarkable achievement. Vox management believes that the return on investment on this royalty investment has the potential to be significant given the potential size of the reserve relative to the low acquisition cost.
Bulong (Pre-Construction – Western Australia) – Imminent Commercialisation Decision & Toll Discussions Continuing
- Vox holds an uncapped 1% net smelter royalty over part of the Bulong gold project in Western Australia;
- On December 30, 2022, and January 31, 2023 Black Cat announced:
- Myhree grade control drilling has confirmed a robust open pit deposit with commercialisation discussions expected to be finalised in the March 2023 quarter;
- Discussions have continued with a number of parties regarding commercialisation (including toll treatment) of the high grade Myhree open pit deposit; and
- A Myhree commercialisation decision is expected in February 2023.
- Vox Management Summary: The Bulong royalty was acquired from an Australian automotive group in September 2020 and continues to hit major milestones as it progresses closer to tolling production. Black Cat appears to be very close to locking in commercialisation terms on the high grade Myhree deposit and Vox Management is enthusiastic about any upcoming development decision.
Timothy J. Strong, MIMMM, of Kangari Consulting LLC and a “Qualified Person” under NI 43-101, has reviewed and approved the scientific and technical disclosure contained in this press release.
Vox is a returns focused mining royalty company with a portfolio of over 60 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 target the highest returns on royalty acquisitions in the mining royalty sector. Since the beginning of 2020, Vox has announced over 25 separate transactions to acquire over 50 royalties.
Figure 1: Bowdens Silver Project Extensions (Source: Silver Mines Ltd presentation, 15 Nov 2022) (CNW Group/Vox Royalty Corp.)