Northern Vertex Mining Corp. [NEE-TSXV; NHVCF-OTC] on Wednesday May 26 released results from its multi-phase infill and resource expansion drilling program at the 100%-owned Moss mine in northwestern Arizona. The latest results are focused along strike to the east of the producing gold mine.
Drilling highlights include 21.34 metres grading 1.98 g/t gold and 23.75 g/t silver in drill hole AR21-424R, and 22.86 metres of grade 1.32 g/t gold and 17.43 g/t silver in hole AR21-425R. “Drilling indicates economically significant mineralization extends at least 140 metres from the mining operations and remains open,” the company said in a press release.
Northern Vertex shares fell 1.3% or $0.005 to 38 cents on volume of 157,200. The shares are trading in a 52-week range of 72 cents and 24 cents.
Northern Vertex recently merged with Eclipse Gold Mining Corp. in a move to create a new gold producer with a focus on the western United States.
The company’s key asset is the 100%-owned Moss gold-silver project in Arizona. The mine reached the commercial production stage in September, 2018, after the company’s partner Sprott Private Resource Lending LP, agreed to provide up to US$100 million in acquisition and development funding as well as a CAD$2 million private placement.
By deploying low-cost heap leaching recovery methods, Northern Vertex is expecting the Moss project to produce 45,000 ounces of gold equivalent during the first five years of production. Annual cash flow is projected at US$24 million and will be used to fund expansion and acquisitions.
As of February 12, 2021, the combined entity had a cash balance of approximately US$18.7 million.
“High-grade gold mineralization immediately along strike of the producing operation gives us confidence in our ability to expand the resource at the Moss Mine in the near term,” said Northern Vertex President Michael Allen.
“We are consistently showing that the Moss Mine has the potential to become a much larger operation as we explore within and around the existing footprint, along with multiple regional opportunities our team has identified,” he said. “Over the coming months we intend to systematically explore and expand the Moss Property to assess its full potential as Arizona’s largest pure precious metals producer.”
The Moss Mine resource expansion drilling continues to intersect mineralization approximately 140 metres to the east of the existing pit rim.