Vox Royalty reports exploration, development update for Red Hill gold project

Vox Royalty (VOXR) shared a significant exploration and development update for the Red Hill gold project in Western Australia from its royalty operating partner Northern Star Resources Limited (NESRF) released on May 2, 2024. Vox holds a 4.0% gross revenue royalty over mining lease M27/57 at Red Hill. The Red Hill gold deposit is located 3.5km east of Northern Star’s Kanowna Belle mine and processing plant and 22km north-east of Northern Star’s Kalgoorlie Consolidated Gold Mines Operations, which includes the Fimiston processing plant in Western Australia. KCGM and the Fimiston plant are currently the subject of a major brownfield expansion project by Northern Star. The A$1.5 billion KCGM Mill Expansion Project is expected to increase processing capacity from 13Mtpa to 27Mtpa. The Red Hill project was historically mined as an open pit operation between 2001 and 2007, producing approximately 467,000oz. Spencer Cole, CIO stated: “This significant 58% resource upgrade, maiden reserve declaration and further disclosure around development assumptions at Red Hill is a material milestone for Vox’s gold royalty. Based on the maiden reserves, Vox management estimates that this Red Hill gold royalty has the potential to generate approximately $10 million in initial annual revenues, over a potential mine life that is still to be determined by Northern Star. In addition to this significant resource increase, the Red Hill deposit remains open at depth. This announcement further validates the Red Hill royalty’s underlying quality, as well as its strategic setting and optionality within Northern Star’s expanding Kalgoorlie production centre. We look forward to further Red Hill development updates over the coming quarters.”