TORONTO, Aug. 10,
2022 /CNW/ - Vox Royalty
Corp. (TSXV: VOX) (OTCQX:
VOXCF) ("Vox" or the
"Company"), a returns focused precious metals royalty
company, is pleased to announce an update on the producing Wonmunna
Iron Ore Mine ("Wonmunna") in Western Australia, controlled by ASX-listed
Mineral Resources Limited ("MinRes"). Vox holds an uncapped
1.25% - 1.50% gross revenue royalty over Wonmunna, which forms a
key part of MinRes' 11Mtpa Utah Point Hub operations
in the Pilbara region.
Further to the Wonmunna royalty acquisition announcement
by Vox on May 26,
2022, Vox has now filed a technical report on
SEDAR titled: "Technical Report, Wonmunna Iron Ore Mine,
Western Australia, Australia" dated August 10, 2022. The technical report was
commissioned by Vox and prepared by Kangari Consulting
LLC.
Mining Proposal for
Expansion to 13.5Mtpa
In February 2022, MinRes
submitted an amended Mining Proposal to the Western Australian
Environmental Protection Authority seeking approval to expand the
annual production rate at Wonmunna from 10Mtpa to 13.5Mtpa,
representing a significant increase from the current ~5Mtpa
production rate (the "Feb 2022
Mining Proposal").1 Vox is pleased to announce
that the Feb 2022 Mining Proposal was
approved by the Department of Mines, Industry Regulation and Safety
(DMIRS) on June 29, 2022.
Riaan Esterhuizen,
Executive Vice-President – Australia stated, "The ability for Wonmunna
production to be expanded without significant additional capital
intensity was a key attribute which attracted us to this royalty,
as demonstrated by the recently approved Feb
2022 Mining Proposal. MinRes' uniquely integrated
miner/contractor business model puts it in a strong position to
deliver the increased production tonnage set out in its latest
proposal, and we are excited about the potential royalty returns
for the Company over the coming years."
Asset Overview – Wonmunna
Iron Ore Mine
Wonmunna is located approximately 70km west-northwest of
Newman in the Pilbara region of Western
Australia. The mine is located within the Hamersley Ranges
which has a long mining history. The mine is located within 25
kilometres of operating mines; Hope
Downs (Rio Tinto/Hancock JV), Area C (BHP) and West Angelas
(Rio Tinto). The northern boundary of royalty-linked tenement
M47/1425 abuts the Great Northern Highway.
Current mining at Wonmunna involves the extraction of iron
ore from three Marra Mamba Iron Formation-hosted deposits across
multiple shallow open pits ranging from 20m to 50m in
depth. The mine plan and throughputs are based on an average grade
of 57.5% iron and production of 3Mtpa of ore, which Vox management
believes was achieved in 2021. Based on MinRes' March 2021 Mining Proposal2, Vox
management expects that production throughput will further increase
to +5Mtpa in 2022.
Leveraging MinRes' integrated miner/contractor model, the
mine was developed ahead of schedule and under budget over a
5-month development period at a total capital and project
acquisition cost of A$126 million.
Drilling and blasting is used in the mining of the ore and
overburden, with conventional mining excavators and mine trucks
hauling the ore from the pits to the crushing and screening
plant.
Onsite processing is limited to dry crushing and blending
according to market requirements. The mine has been developed for
the export iron ore market, although some mine gate sales may be
considered in the future. Export product is hauled via road trains
on the Great Northern Highway to the MinRes operated Utah Point
bulk port facility at Port Hedland. There are no pastoral leases
over the mining tenements.
The proposed initial mine life included in the
March 2021 Mining
Proposal2 was "30Mt over 4
years to 2025" with a "potential increase in total inventory of 50
– 60Mt up to 2028", which underpinned Vox management's expectations
of a mine life to 2028 and potentially beyond. MinRes reported in
April 2021 that they were carrying
out ~12,000m of resource definition drilling at
Wonmunna3, supporting resource to reserve conversion and
submission of the Feb 2022 Mining
Proposal.
For more information on the Wonmunna Mine, please visit
the MinRes website at
https://www.mineralresources.com.au/our-business/commodities/iron-ore/.
Qualified
Person
Timothy J. Strong, MIMMM,
of Kangari Consulting LLC 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 returns focused precious metals royalty company
with a portfolio of over 50 royalties and streams spanning eight
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 target the highest return on invested capital in the royalty
sector. Since the beginning of 2019, Vox has announced 20 separate
transactions to acquire over 50 royalties.
Further information on Vox can be found at
www.voxroyalty.com.
Cautionary Note Regarding
Forward Looking Information
This news release contains certain forward-looking
statements. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate"
"plans", "estimates" or "intends" or stating that certain actions,
events or results " may", "could", "would", "might" or "will" be
taken, occur or be achieved) are not statements of historical fact
and may be "forward-looking statements".
The forward-looking statements and information in this
press release include, but are not limited to, statements regarding
expectations for the timing and quantity of resource production
from Wonmunna, expectations regarding the size, quality and
exploitability of the resources associated with Wonmunna, future
operations and work programs of Vox's mining operator partner, the
receipt of future royalty payments derived from Wonmunna,
anticipated future cash flows and future financial reporting by Vox
and regulatory approvals that remain outstanding or have not yet
been publicly confirmed by the operator of Wonmunna.
Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of Vox to control or predict, that may cause Vox's
actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and
other factors set out herein, including but not limited to: the
requirement for regulatory approvals and third party consents, the
impact of general business and economic conditions, the absence of
control over the mining operations from which Vox will receive
royalties, including risks related to international operations,
government relations and environmental regulation, the inherent
risks involved in the exploration and development of mineral
properties; the uncertainties involved in interpreting exploration
data; the potential for delays in exploration or development
activities; the geology, grade and continuity of mineral deposits;
the impact of the COVID-19 pandemic; the possibility that future
exploration, development or mining results will not be consistent
with Vox's expectations; accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties or
interruptions in operations; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the
availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions,
including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and
uncertainties. Should one or more of these risks, uncertainties or
other factors materialize, or should assumptions underlying the
forward-looking information or statement prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Vox cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking
statements and information to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events.
Vox has assumed that the material factors referred to
in the previous paragraph will not cause such forward looking
statements and information to differ materially from actual results
or events. However, the list of these factors is not exhaustive and
is subject to change and there can be no assurance that such
assumptions will reflect the actual outcome of such items or
factors. The forward-looking information contained in this press
release represents the expectations of Vox as of the date of this
press release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward looking
information and should not rely upon this information as of any
other date. While Vox may elect to, it does not undertake to update
this information at any particular time except as required in
accordance with applicable laws.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Technical and Third-Party
Information
Except where otherwise stated, certain disclosure in this
press release is based on information publicly disclosed by third
parties (including but not limited to mining project operators and
government departments) based on the information/data available in
the public domain as at the date hereof, and none of this
information has been independently verified by Vox. Specifically,
as a royalty investor, Vox has limited, if any, access to the
royalty operations. Although Vox does not have any knowledge that
such information may not be accurate, there can be no assurance
that such information from the project operators is complete or
accurate. Some information publicly reported by the project
operators may relate to a larger property than the area covered by
Vox's royalty interests. Vox's royalty interests often cover less
than 100% and sometimes only a portion of the publicly reported
mineral reserves, mineral resources and production of a
property.
Technical References &
Notes:
(1)
|
Western Australia
Department of Mines, Industry Regulation and Safety - see link
which includes the application date of 21 February 2022, approval
date of 29 June 2022 and a copy of the Feb 2022 Mining
Proposal:
https://minedex.dmirs.wa.gov.au/Web/environment-registrations/details/103347
|
(2)
|
Western Australia
Department of Mines, Industry Regulation and Safety – see link
which includes the application date of 24 March 2021 and approval
date of 2 May 2021:
https://minedex.dmirs.wa.gov.au/Web/environment-registrations/details/95918
|
(3)
|
See FY21 Q3 Quarterly
Activities Report, retrievable at
https://www.mineralresources.com.au/investorresources/latest-asx-announcements/page/13/
|
SOURCE Vox Royalty Corp.