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Vox to Acquire Royalty on Part of 3 Million Ounce Australian Gold Project

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Vox Royalty Corp. (TSX-V: VOX)  a high growth precious metals focused royalty company, is pleased to announce that it has entered into a binding agreement with a private Australian-registered entity pursuant to which Vox will acquire a A$10/oz gold royalty on part of Norton Gold Fields Pty Ltd’s Bullabulling Gold Project in Western Australia for total consideration of up to A$2,200,000.

 

Vox will pay upfront cash of A$1,200,000. The first milestone payment is contingent upon Norton receiving approval of a mining proposal from the West Australian Department of Mines, Industry Regulation and Safety.  Upon that milestone being achieved Vox will pay a milestone payment of A$500,000, in cash or Vox shares, at the Company’s sole discretion. The second milestone is contingent upon Vox receiving first royalty revenue from Bullabulling, the milestone payment of A$500,000, may be settled in cash or Vox shares, at the Company’s sole discretion. Closing of the Transaction remains conditional upon Australian Foreign Investment Review Board approval. Any issuance of Vox shares in connection with the milestone payments will require the approval of the TSX Venture Exchange.

 

Transaction Highlights

 

  • Acquisition provides exposure to one of Australia’s largest undeveloped gold projects at the feasibility stage Bullabulling Project that hosts a total resource estimate of 91.65Mt @ 1.04 g/t Au for 3,079,000 ounces.
  • Prior to Norton’s takeover of former project operator Bullabulling Gold Limited (“BGL“) in 2014, BGL released a Pre-Feasibility study for Bullabulling which included a 10.5 year life of mine producing a total of 1,948,000 ounces of gold, including 650,000 ounces of gold targeted for production in the first three years.
  • Strong operating partner in Kalgoorlie-based Norton Gold Fields Pty Ltd, one of Australia’s largest domestic gold producers and a subsidiary of Hong Kong and Shanghai-listed global mining group Zijin Mining Group Co. Ltd (market capitalization of US$36B).
  • Project is located 60km from Kalgoorlie in the prolific Kalgoorlie / Coolgardie Mining District in Western Australia, within close proximity to established power, water and road infrastructure.
  • Uncapped royalty provides exposure to resource expansion potential at the royalty-linked Phoenix, Hobbit and Titan deposits, over and above the existing 775,000 royalty gold ounces at the Bonecrusher and Dicksons deposits.

 

Riaan Esterhuizen, Executive Vice President of Australia stated: “The addition of Bullabulling grows the number of gold royalties held by Vox in Western Australia to nineteen (with 34 total in Australia), further strengthening the portfolio of royalties which includes multiple producing, development and exploration stage assets. Bullabulling adds exposure to another large gold resource with near-term development potential and is ideally located in Western Australia’s premier Kalgoorlie / Coolgardie gold mining district. We look forward to seeing our operating partner Norton bring this project into production.”

 

Bullabulling Asset Overview

 

Bullabulling was historically mined as an open pit operation in the 1990’s, with processing via heap leaching and a carbon-in-leach processing of the overlying lateritic mineralisation, oxidised, transitional and primary ores; with total production estimated as 7.9Mt at 1.45g/t Au for 371Koz Au.1

 

The total Bullabulling indicated and inferred resource is 91.65Mt @ 1.04 g/t Au for 3,079,000 ounces Au3 spread across 12 deposits (Figure 1). The stacked lodes between the royalty-linked Bonecrusher deposit in the north and the Bacchus deposit 5.5km to the south exhibit strong continuity over a true thickness of 270m and extend 500m across strike on the widest section.1

 

A comprehensive pre-feasibility study was completed by BGL in February 20132 based on the development of a 7.5 million tonne per annum open pit mining operation with a conventional CIL processing facility. Gold production of 1.95 million ounces was forecast over a mine life of 10.5 years. The mineable ore was estimated at 79.1 million tonnes at 0.87g/t. BGL completed further mine planning optimisation studies which resulted in a larger ultimate pit size and increased the in-pit ore estimate to 95 million tonnes at 0.84g/t.

 

The royalty is uncapped, payable at a rate of A$10/oz of gold produced (post-production of 100,000 ounces gold, approximately 25,000 ounces historically produced against hurdle) and covers two granted mining leases, M15/503 and M15/1414 which are located at the northern end of the mineralised trend. These royalty leases cover 100% of the Bonecrusher, Dicksons and Phoenix deposits, which collectively contain 25Mt @ 0.95g/t Au for 775,000 ounces of Au (Table 2) as well as 100% of the Phoenix deposit and portions of the Hobbit and Titan deposits (for which no resources are individually reported from consolidated totals).1

 

The project is operated by Norton, which is a subsidiary of Hong Kong and Shanghai-listed Zijin. Norton is a well credentialled West Australian gold producer that controls a large land package and in addition owns the Paddington Mill which is located 30km northwest of Kalgoorlie. Bullabulling is located in the Coolgardie Mining District, within close proximity to established power, water and road infrastructure.

 

 

Bullabulling 2012 JORC Compliant Resource Estimates as at July 31, 2014 and December 31 2014

 

Indicated Resources Inferred Resources Total Resources
Mt Au (g/t) Au Ozs Mt Au (g/t) Au Ozs Mt Au (g/t) Au Ozs
68.57 0.99 2,185,000 23.08 1.20 893,000 91.65 1.04 3,079,000
Table 1: Total Bullabulling Mineral Resource as at December 31, 2014 (at a cut-off grade of 0.5g/t gold)3

 

 

 

Mineralisation
Type
Classification Tonnes
Mt
Au
g/t
Laterite Inferred 1.5 0.91
Amphibolite Indicated 14.3 0.86
Inferred 9.5 1.1
Table 2: Royalty-linked Mineral Resource (Dicksons & Bonecrusher deposits) as at July 31, 2014
(at a cut-off grade of 0.5g/t gold)1

 

For more information on Bullabulling, please visit the Norton website at: https://nortongoldfields.com.au/

 

Transaction Closing

 

Closing of the Transaction is expected to occur in the Q2 2021. Closing of the Transaction will occur following receipt of FIRB Approval and customary conditions. Vox will use current cash on hand to fund the payment of the Transaction.

 

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 45 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.

 


Figure 1: Bullabulling Project1 and royalty tenure outlined in white (CNW Group/Vox Royalty Corp.)

 

Posted March 30, 2021

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