Business
Vox Royalty notes the successful commencement of the commissioning of the Segilola Gold plant
TORONTO, July 19, 2021 /CNW/ - Vox Royalty Corp. (TSXV: VOX) ("Vox" or the "Company"), a high growth precious metals focussed royalty company, is pleased to not
About this update from Vox Royalty Corp
[{"type":"text","content":" TORONTO, July 19, 2021 /CNW/ - Vox Royalty Corp. (TSXV: VOX) (\"Vox\" or the \"Company\"), a high growth precious metals focussed royalty company, is pleased to note the announcement by Thor Explorations Ltd. (TSXV: THX) (\"Thor\") that it has commenced the commissioning of its gold processing plant following the successful turning of the mills at its Segilola Gold Project (\"Segilola\") in Nigeria. Thor expects to pour its first gold from Segilola before the end of July 2021. Simon Cooper, Executive Vice President of Corporate Development stated: \"We are thrilled to share this major commissioning milestone from Segilola with Vox shareholders. Once first gold pour is achieved later this month, Segilola will be Vox's fifth producing royalty asset. Based on production guidance from Thor, we expect that this royalty has the potential to generate revenue almost five times Vox's initial investment of C$900,000 within a span of 3 years. This is another example of Vox's unique ability to acquire accretive precious metals royalties that are within 3 – 24 months of first production.\" Mining is underway at Segilola, with 700,000 tonnes of waste mined and 30,000 tonnes of ore stockpiled in preparation for process plant commissioning. The pit is fully prepared for mining operations, with pre-strip nearing completion. The mining fleet is now fully commissioned, and production is expected to quickly ramp up to its design capacity. All the necessary permits are in place and blasting operations have started as the Company moves into the harder transitional and fresh ore zones. On September 10, 2020, Vox acquired a 1.5% net smelter return royalty in respect of all products mined from the property for C$900,000 in cash. Royalty payments are capped at US$3.5M (~C$4.4M at spot CAD:USD of 0.79). Based on production guidance from Thor issued on March 29, 2021, which forecast production of 46,000 ounces of gold in 2021 and 109,000 ounces of gold in 2022, Vox management estimates that total pre-tax royalty revenues of C$4.4M will be receivable within the first two full years of production. Segilola Overview Segilola is in the state of Osun in Nigeria, approximately 120km northeast of Lagos. The deposit hosts open pit probable gold reserves1 of 517,800 ounces at 4.02g/t (at 0.30g/t cut-off, resource estimate dated March 29, 2021). A 2019 De...