- Vox Royalty (VOXR, Financial) has announced a significant resource upgrade at its Red Hill project through operating partner Northern Star Resources.
- Northern Star's A$1.5 billion expansion of the KCGM Mill will more than double processing capacity by FY2027.
- Red Hill project is poised for resumption with positive preliminary economic studies and ongoing regulatory approvals.
Vox Royalty Corp (VOXR) reported noteworthy advancements in their Red Hill gold project located in Western Australia. Northern Star Resources, the project's operating partner, has upgraded the gold resource at its Kalgoorlie Operations, which includes the Red Hill deposit. This upgrade features an increase of 525,000 ounces at 1.1g/t Au measured and indicated resources, and 142,000 ounces at 0.8g/t Au inferred resources.
The Red Hill project is set to benefit significantly from Northern Star's A$1.5 billion investment in the KCGM Mill Expansion Project. This development is expected to increase processing capacity from 13 million tonnes per annum (Mtpa) to 27 Mtpa by fiscal year 2027. The expansion aims to enhance the economic viability of the project, which historically produced approximately 467,000 ounces of gold between 2001 and 2007.
Environmental studies and regulatory approvals are currently underway, with proposals for mining operations and mine closure plans in preparation. The project is bolstered by existing infrastructure, including haul road access to the Fimiston processing plant, and is positioned as a low-risk, high-priority development within Northern Star's portfolio.
For shareholders of Vox Royalty (VOXR, Financial), this development marks a promising opportunity for future cash flow, with the Red Hill project likely contributing to earnings starting in fiscal 2027. As further drilling continues, the potential for additional resource growth remains strong, supporting Vox's strategy of enhancing value through strategic royalty acquisitions in the mining sector.
