Vox forges ahead with organic royalty growth as partners post record exploration
Vox Royalty chief investment officer Spencer Cole expects resource upgrades for at least six projects over the next six months.
High growth focused Vox Royalty (TSXV: VOX) (OTCQX: VOXCF) revealed its royalty investment companies have achieved a “record year” of exploration with resource upgrades expected for numerous deposits.
As a result, Vox Royalty has provided market updates regarding royalty investments – Quantum Graphite (ASX: QGL), Develop Global (ASX: DVP), Silver Mines (ASX: SVL) and ValOre Metals Corp (TSXV: VO).
“This past month’s exploration progress caps off a record year of partner-funded exploration on Vox’s royalty projects with approximately 170,000m drilled across 18 separate projects,” Vox chief investment officer Spencer Cole said.
“Based on operator guidance, Vox management expects resource upgrades will be forthcoming for South Railroad, Bowdens, Sulphur Springs, Pedra Branca, Pitombeiras and Kookynie projects over the next six months.”
Mr Cole added that 2022 is shaping up to be a “tremendous year” for Vox’s organic royalty developments.
Quantum Graphite
Kicking-off the positive exploration developments for Vox’s royalty partners was Quantum, which debuted a maiden resource for the Uley 3 deposit within the wider Uley graphite project in South Australia’s Eyre Peninsula.
The maiden Uley 3 resource totals 900,000 tonnes at 6.6% total graphitic carbon for 59,000t of contained total graphitic carbon.
This adds to the Uley global resource which now stands at 7.2Mt at 10.5% total graphitic carbon for 757,000t of contained ore.
Vox holds a 1.5% gross revenue royalty over Uley, with management saying the ongoing drilling success at the project demonstrates its “considerable” prospects.
Develop Global
At Develop Global’s Sulphur Springs project, a 20,000m drilling program was recently completed.
Develop Global has received about 25% of the assays, which Vox says “point to a significant increase” in the indicated resource along with identifying a new mineralised zone.
Highlight intercepts were 49m at 2.6% copper equivalent (0.8% copper, 0.2% lead, 6% zinc, 16.1 grams per tonne silver and 0.4g/t gold) from 232m; 8m at 1.9% copper equivalent (0.3% copper, 0.2% lead, 5.3% zinc, 28.7g/t silver and 0.1g/t gold); and 20m at 2.8% copper equivalent (7.5% zinc, 0.4% copper, 0.6% lead, 36.5g/t silver and 0.2g/t gold).
After receiving these results, Develop Global is reviewing its mine plan, which will be carried out in parallel with a resource upgrade – both due mid-2022.
Vox has a $2/t production royalty ($3.7 million royalty cap) on Sulphur Springs and an uncapped $0.80/t production royalty on the project’s Kangaroo Caves deposit.
Silver Mines
Drilling at Silver Mines’ Bowdens silver project has continued with initial preliminary results.
A 30,000m program is underway and will extend into 2022 with the aim of a delivering a maiden underground resource to underpin a scoping study into underground mining scenarios.
Notable results from the latest drilling at Bowdens comprised 14.2m at 374g/t silver equivalent (36g/t silver, 4.86% zinc, 2.35% lead and 0.23g/t gold) from 238m, including 4.6m at 694g/t silver equivalent (72g/t silver, 8.76% zinc, 4.4% lead and 0.49g/t gold) from 245.4m; and 9m at 296g/t silver equivalent (29g/t silver, 3.23% zinc, 1.86% lead and 0.55g/t gold) from 300.7m, including 1.5m at 470g/t silver equivalent (48g/t silver, 5.55% zinc, 3.69% lead and 0.3g/t gold) from 301.5m.
Vox owns a 0.85% gross revenue royalty on Bowdens and a 1% gross revenue royalty over surrounding regional ground.
ValOre
In South America, royalty partner ValOre has completed 20 holes for 2,316m at Pedra Branca, with the drilling program designed to expand resources.
Vox says all holes intercepted the target intrusion, with notable platinum group element mineralisation present in 16 of the holes. Drilling also increased the known mineralised strike by 215m to over 600m.
Better intercepts were 127m at 0.85g/t palladium-platinum-gold (2PGE plus gold) from 39m, including 27m at 2.25g/t 2PGE plus gold from 55m; 53m at 1.19g/t 2PGE plus gold from 2m, including 20m at 2.13g/t 2PGE plus gold from 29m; and 22m at 2.64g/t 2PGE plus gold from 18m, including 6m at 5.32g/t 2PGE plus gold from 29m.
Vox holds a 1% net smelter royalty over Pedra Branca, which it says is South America’s largest platinum group metals deposit.
The company anticipates Pedra Branca will continue growing throughout 2022 as exploration continues.
Vox
With a precious metals focus, Vox’s portfolio comprises more than 50 royalties and streams over eight jurisdictions. The company is on track to meet the upper end of its revenue guidance of C$4-5 million (A$4.37-5.46 million) for the 2022 calendar year.
Vox is the second largest holder of public hard rock mining royalties in Australia and describes itself as the fastest growing public company in the global royalty sector.