Vox Royalty (TSX-V:VOX) Corp reported news that construction is set to begin immediately on the Mt Ida gold project in Western Australia, where it holds a 1.5% net smelter return royalty (NSR).
GR Engineering Services announced on September 3 that it had struck an engineering, procurement and construction (EPC) contract with Aurenne Alt Resources Pty Ltd, which inherited the project when it acquired Alt Resources last year.
The project sits in the eastern goldfields of Western Australia and the contract is worth around A$73 million.
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"The construction contract award milestone for Mt Ida demonstrates Vox's ability to identify and acquire royalties that are on the cusp of construction. Including Mt Ida, Vox management expects Vox will hold ten producing royalty assets by the end of 2023. We are excited to share further development milestones with Vox shareholders over the coming quarters," said Riaan Esterhuizen, Vox's executive vice-president for Australia.
Vox, which holds over 50 royalties and streams, holds a 1.5% net smelter return royalty subsequent to the first 10,000 ounces of cumulative gold production over part of the Mt Ida asset.
A pre-feasibility study (PFS) confirmed the viability of 750 thousand tonnes per annum (ktpa) mining and gold processing plant at Mt Ida Bottle Creek project. At a gold price of A$2,305 per ounce, it generated a 41% post-tax internal rate of return (IRR) over a seven-year life of mine.
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