Toronto Venture exchange-listed Vox Royalty Corporation (TSX-V: VOX), which holds 37 royalty deals over Australian hard rock projects, says 2022 has the potential to be a record year for discovery drilling, engineering studies, plus projects moving into production.
Australia has been a strong focus for the Canadian company, with those 37 Australian deals being part of a total 55 royalty commitments acquired by Vox.
Chief investment officer, Spencer Cole, singled out pre-construction progress by Black Cat Syndicate (ASX: BC8) for mention, noting the company’s recent announcement that it was in the process of securing all items needed to begin production at Bulong in the second half of 2022.
Vox holds a 1% net smelter royalty over the project.
‘Substantial’ drilling updates by Australian royalty partners
Black Cat’s gold project covers 756sq km of tenements to the east of Kalgoorlie. The company plans to construct a central processing facility that it says is within a short haulage distance of the bulk of its resources.
The production preparations will include securing of all major mill components, increasing resources in parallel with working on the maiden ore reserve statement, and re-optimising mine plans based on 800,000 tonnes per annum milling capacity and a larger mining fleet.
Mr Cole also highlighted substantial drilling updates at the Bowdens silver project in NSW owned by Silver Mines (ASX: SVL), as well as at the Higginsvile gold mine owned by Toronto-listed Karora Resources, and the Uley graphite project in South Australia held by Quantum Graphite (ASX: QGL).
Vox holds a 0.85% gross revenue royalty on production at the Bowdens silver-lead-zinc project where Silver Mines recently announced it will continue into 2022 with four diamond rigs targeting a maiden underground resource. Silver Mines will also complete a scoping study of underground mining scenarios.
The Canadian company also has 1% gross revenue royalty over surrounding ground controlled by Silver Mines.
Vox expecting cash flow as drilling programs seek more discoveries
With the Uley graphite project on Eyre Peninsular, Vox holds a 1.5% gross revenue royalty.
Quantum recently completed its latest drilling program and this month announced it intercepted graphitic carbon outside the current resource, which Vox said highlighted the significant potential for future resource growth.
Uley was discovered in the 1920s and mined sporadically until 1993 when it closed due to falling prices caused by Chinese graphite dumping on the world market.
The project was acquired in 2014 by Quantum, then listed under the name Valence Industries.
Vox says it is unique in the emerging royalty industry by having about 20 separate projects with active exploration programs, “many of which are the flagship of their listed operating company”.
It added: “2022 is shaping up to be a record year of drilling across the Vox royalty asset portfolio, which increases the probability of further discoveries and medium-to-long term royalty cash flow for Vox”.