Vox Royalty (TSX-V:VOX) Corp has updated on recent progress by its royalty partners as it eyes a record year for its portfolio in 2022.
"The past month of royalty operator newsflow includes the exciting release of the South Railroad feasibility study, ongoing exploration success at Sulphur Springs, Puzzle North and Bulgera, capped off by consistent development guidance for Lynn Lake," said Spencer Cole, the chief investment officer (CIO) at the company, which boasts over 50 royalties and streams in eight jurisdictions.
"Each of these projects is being aggressively progressed by well-capitalized operators towards near-term resource updates and development decisions. 2022 continues to be shaping up as a record year for the Vox Royalty (TSX-V:VOX) portfolio based on these developments."
At Gold Standard Ventures' South Railroad gold project in Nevada, USA Vox holds a 0.633% net smelter return (NSR) royalty, and the former last month published a robust feasibility study.
READ: Vox receives first royalty payment from Segilola Gold project
The study was based on a 10.5-year operating life with total gold production of over 1 million ounces (oz), with average output of 152,000oz over the first four years. The after-tax internal rate of return (IRR) was pegged at 62% with a net present value (NPV) of US$487 million at a spot gold price of US$1,899.20 per ounce.
Genesis Minerals (ASX:GMD) Limited has released 'exceptional' drill results from the Puzzle North discovery at the Kookynie gold project in Western Australia, noted Vox, which holds a A$1/tonne production royalty on part of the asset.
"This exciting gold exploration royalty that Vox acquired for less than A$150k in 2020 is being rapidly drilled to include the royalty-linked Puzzle North discovery in an expanded feasibility study at the Ulysses gold project," said Vox in the statement.
Meanwhile, at the Sulphur Springs project also in Western Australia, Vox said that "under the new leadership of Northern Star Resources founder Bill Beament", the asset was on track to be expanded in resource size and fast-tracked into underground decline development within the next 12 months.
Vox holds a A$2/tonne production royalty (capped at A$3.7 million) on the Sulphur Springs copper-zinc deposit and an uncapped A$0.80/tonne production royalty on the Kangaroo Caves deposit, which is part of the combined Sulphur Springs asset.
Regarding the Lynn Lake project in Manitoba, where Vox has a 2% gross revenue royalty, the company noted: "Alamos management has been very consistent in guiding towards a 2022 construction decision at Lynn Lake and is currently guiding investors towards 2025 first production in its corporate presentation."
Finally, at the Bulgera gold project in Western Australia, where Vox holds a 1% NSR, Norwest management are now "guiding towards a remodelled and expanded resource estimate for the past-producing" asset, which would increase the value of Vox's royalty, it added.
Contact the author at giles@proactiveinvestors.com