Northern Vertex tables new resource estimate

Northern Vertex Mining Corp. [NEE-TSXV; NHVCF] on Tuesday March 17 announced a mineral resource estimate update for the company’s 100%-owned Moss Gold Mine property in northwest Arizona.

The updated mineral resource estimate constitutes a non-material increase in total tonnage and contained gold metal when compared to a previously disclosed mineral resource estimate contained in a recent technical report dated November 22, 2017.

Highlights from the announcement include total Measured and Indicated Resources of 360,000 ounces of gold and 3.9 million ounces of silver within 20.5 million tons at an average grade of 0.0175 oz/ton gold and 0.2171 oz/ton silver.

The new estimate also includes Inferred Mineral Resources of 129,000 ounces of gold and 1.37 million ounces of silver within 11.9 million tons at an average grade of 0.0108 oz/ton gold and 0.1149 oz/ton silver.

The company said additional infill drilling to depth has the potential to further expand the mineral resource in the West Pit area. “The mineral resource further to the west of the area drilled in 2019 has the potential to increase with additional infill drilling,” the company said in a press release.

On Tuesday, Northern Vertex shares eased 5.4% or $0.01 to 17.5 cents. Trading volume was light at 19,200 shares traded. The shares are trading in a 52-week range of 16 cents and 35 cents.

Northern Vertex is a development stage company that recently put its flagship Moss gold-silver project into production. 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 annually 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.

The company is led by President and CEO Ken Berry, an experienced financier who has outlined a strategy that aims to leverage the company’s strong balance sheet, production, cash flow, and financial partnerships to elevate Northern Vertex to mid-tier gold producer status, generating over 200,000 ounces of gold production annually. He plans to achieve that goal via a process of consolidation using the Moss mine as a springboard.

The updated mineral resource estimate is effective as of December 31, 2019 and incorporates the results of a 2019 reverse circulation infill drill program. It consisted of 14,140 feet over 29 holes. Results were disclosed in a press release dated December 18, 2019.

That program was carried out within the western area of the Moss Mine, west of the current mining operations. The aim was to upgrade the inferred resource to measured and indicated, and expand the planned pit to the south and to depth.

Highlights include 45 feet of 1.388 g/t gold, 25 feet of 1,488 g/t gold, and 140 feet of 0.919 g/t gold.

Drilling within the western area of the Moss Gold Mine and west of the current mining operation successfully demonstrated that there are significantly more resources hosted within and nearby the current pit.

However, compared to the previously disclosed mineral resource estimate contained in a recent technical report dated November 22, 2017, the updated mineral resource estimate constitutes a non-material increase in total tonnage and contained gold metal, with additional new resources identified from infill drilling more than offsetting depletion from mining activities.