VANCOUVER, Canada, November 15, 2012 /PRNewswire/ --
Preliminary Economic Assessment Underway 3 Phase
Mine Development Model Planned
Northern Vertex Mining Corp. (the "Company") (TSXV: NEE)
is pleased to provide a corporate update on exploration and project
development plans for the Moss Gold-Silver Project located in
Mojave County, Arizona, USA with
highlights as follows:
- NI 43-101 compliant mineral resource 956,800 AuEq (oz) measured
and indicated, 266,340 AuEq (oz) inferred (see resource estimate
summary below)
- Low strip ratio in initial mining areas possible
- Amenable to low cost, heap leach, open pit mining
- Major stockwork vein system outcropping at surface for 5,000
feet
- Metallurgical test-work underway
- Additional resource definition drill program currently underway
to increase resources adjacent to proposed pits and for data use in
mine design and planning - targeting an additional 250,000 AuEq
(oz)
- 3 Phase model approach now in place for mine development, to
minimize initial Capex and to ensure technical and economic
objectives are met for subsequent Phases prior to proceeding
- Application for Aquifer Protection Permit for 90,000 tonne
Pilot Phase I quarry/leach pad will be submitted to Arizona
Department of Environmental Quality (DEQ) by month end
- Phase II production target, 5,000 tpd
- Phase III production target 10,000 tpd
- Preliminary Economic Assessment (PEA) underway and expected
early in new year
Location and Property Description:
The Moss Gold-Silver Property is located in the northern part of
the Oatman Mining District, Mojave County, Arizona, USA. The Moss deposit is a
mineralized quartz-calcite vein and stockwork up to 45 feet wide;
it strikes approximately N70°W and dips 65-75° SW; the outcropping
surface trace has a strike length of 5000 feet. The Moss
property hosts low sulphidation epithermal vein-type gold
mineralization.
The Moss property has easy access to supplies, accommodations,
workforce, infrastructure and power. The nearest town is
Oatman, Arizona (6.2 miles); the
nearest cities are Bullhead City,
Arizona and Laughlin,
Nevada. Las Vegas, the
nearest major city, is located only 80 miles northwest of the Moss
Property and is a short 2 hour drive.
Exploration Program Update:
Exploration will focus on two elements:
- Mine exploration program
- Surrounding property exploration program
The mine exploration program is the Company's current
exploration priority. A comprehensive resource definition
drilling program is currently underway in the starter open pit mine
area with a focus on two central hills with significant vein
outcropping at surface. Drill results will be utilized in
testing the extensions of the known mineralization, in mine
modeling, to streamline the initial mine design of the starter pit
and to add additional resources to the planned Phase 2 Mine
Plan. Drilling to expand the resource is expected to continue
into 2014 also targeting increasing the resources available for the
Phase 3 Mine Plan. The internal target is to add 250,000 ounces of
gold equivalent adjacent to the currently planned pit areas thereby
extending the mine life by three years or enabling expansion of the
current design capacity from 10,000 tpd to 13,300 tpd.
The surrounding property exploration program is expected to see
a drilling program commence in early 2014 and will be ongoing
throughout the first few years of mine operation. This will be a
property wide program looking to add a million ounces to the
Company's resource statement. The target for the Moss
property as a whole will be 2 million ounces of gold
equivalent.
Moss Project Current Resource:
On September 10, 2012, an updated
NI 43-101 compliant mineral resource estimation was announced for
the Moss Property with results as follows:
Scott
E. Wilson Consulting Inc. Summarized Updated Resource Estimate:
Table 1 Reported at 0.3 gpt Au Cutoff
AuEq*
Resource Category (oz) Au (oz) Ag (oz) Tonnes Grade
AuEq Au Ag
(gpt) (gpt) (gpt)
Measured 427,820 348,000 3,991,000 12,465,000 1.07 0.87 9.96
Indicated 528,980 432,000 4,849,000 18,414,000 0.89 0.73 8.19
M+I 956,800 780,000 8,840,000 30,879,000 0.96 0.79 8.90
Inferred 266,340 216,000 2,517,000 11,915,000 0.70 0.56 6.57
* Gold equivalency is based on a silver:gold ratio of 50:1 and
assumes 100% recovery of all metals.;* Mineral Resources are not
Mineral Reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of the Mineral Resources
estimated will be converted into Mineral Reserves estimate.;*
Mineral resource tonnage and contained metal have been rounded to
reflect the accuracy of the estimate, and numbers may not add due
to rounding.;* Resources were based on 28,871 m of drilling in 330
exploration drill holes and 590 meters of channel sampling from
surface and underground trenches and cross-cuts. There were a total
of 5,872 drill composite samples and 269 rock channel samples used
in the estimation of gold and silver. SEWC used Inverse Power
Distance (ID3) as the preferred estimation technique for the Moss
Project.
3 Phase Mine Development Plan:
The 3 Phase mine development plan is designed to sequentially
progress the project from conceptual design and laboratory test
work to pilot plant testing in the field and, if this is
successful, to secure financing and permitting approval for
building a 5000 tonnes per day mine initially and, if this is
successful, then move to 10,000 tonnes per day ultimately. The
mine, should it proceed to production, will be a classic heap leach
operation.
The business plan has been specifically designed to take
advantage of the natural attributes of the Moss deposit while
minimizing the capital required to get into production and
minimizing the lead time in doing so, thereby reducing project
development risk and capital risk.
Phase I is a pilot plant operation with operations expected to
commence in Q2 2013. Phase II operations are expected to
commence in Q1 2014 at a rate of 5,000 tpd. Phase III
operations are expected to commence in Q4 2017 at a rate of 10,000
tpd. These numbers are being used as the basis of the
Preliminary Economic Assessment now underway and are subject to
review.
Please find below the link for the proposed development
schedule.
Employment:
The Company's objective is to support the local communities and
business wherever possible for both employment and mine supplies
and services. Preliminary estimates of direct and indirect
employment for each mining Phase are listed below and utilize a
multiplier effect of 3:1.
Development Phase: Direct Employment Indirect Employment Total Employment
Phase I 40 120 160
Phase II 100 300 400
Phase III 150 450 600
Engineering and Design:
The immediate goal of the Company's engineering studies is the
completion of a Preliminary Economic Assessment (PEA). The PEA will
incorporate mine, processing and heap leach designs, and will
include estimates of capital and operating costs and pre-tax cash
flows for Phases I and II. A scoping level analysis will be
subsequently prepared for Phase III.
The Preliminary Economic Assessment is expected to be completed
early in the new year.
The project team will be led by Project Manager Mr. Joe Bardswich. The following consultants
have been engaged to carry out the Preliminary Economic Assessment
and initial mine design work:
Mine Exploration Northern Vertex Mining Corp.
Resource Calculation Scott E. Wilson Consulting Inc., Colorado
Project Engineering CDM Smith Engineering, Arizona
Mine Design CDM Smith Engineering, Arizona
Mine Infrastructure CDM Smith Engineering, Arizona
Mineral Processing CDM Smith Engineering, Arizona
Tailing Management CDM Smith Engineering, Arizona
Mine Electrical Engineering M3 Engineering, Arizona
Powerline M3 Engineering, Arizona
Substation M3 Engineering, Arizona
Metallurgy McClelland Laboratories, Inc., Nevada
Community Relations Northern Vertex Mining Corp.
Government Liason Northern Vertex Mining Corp.
Financing:
Current and future financing for the Moss Project is anticipated
in a three part plan.
- A non-brokered private placement financing for $7.5 million, plus a potential overallotment
option, was announced on November 13,
2012 and is expected to close on or about November 26, 2012.
- An anticipated brokered private placement will likely be
announced in Q1 2013 primarily to supplement funding for Phase I of
the Business Plan and to fund detailed design studies for Phase
II.
- In Q4 2013, a third financing is anticipated and will be for
construction of Phase II - if approved - and will focus on a
combination of debt and equity with debt financing of up to 50% of
the capital required.
Qualified Persons:
The mineral resource is reported in accordance with Canadian
Securities Administration (CSA) NI43-101 and has been classified in
accordance with standards as defined by the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) CIM Definition Standards
for Mineral Resources and Mineral Reserves.
The foregoing geological disclosure has also been reviewed and
verified by Northern Vertex's Chief Geologist, Dr. Bob Thompson
PhD, PEng (a qualified person for the purpose of National
Instrument 43-101, Standards of Disclosure for Mineral
Projects).
For full QC/QA procedures please visit:
http://www.northernvertex.com/QCQA.html. For complete drill results
and estimates please visit:
http://www.northernvertex.com/extras/drillresults.pdf
Ownership:
Northern Vertex has the right to earn a 70% interest in the Moss
Gold-Silver Property located in Mohave
County, Arizona from Patriot Gold Corp. Subsequent to the
Northern Vertex earn-in, financing of the project will be on a
proportional basis. The Company paid $500,000 upfront with a work plan commitment of
$8 million to earn the 70%. A
Bankable Feasibility Study is a condition of the earn-in and will
be included in the $8 million
requirement. The Company has spent $4.5 million to date and will complete this
condition with the expenditures anticipated prior to and during
Phase I.
About Northern Vertex:
Northern Vertex Mining Corp. is a Canadian based exploration and
mining company focused on the development of precious metals
deposits in Canada and
the United States. The Company
comprises an experienced management team with a strong background
in all aspects of acquisition, exploration, development and
financing of precious metal mining projects. It's flagship Moss
Gold-Silver Project located in Arizona,
USA contains 956,800 oz of Au-Eq in the measured and
indicated categories and is rapidly progressing the project to a
production decision.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington,
President & CEO
Cautionary Note to US
Investors: This news release may
contain information about adjacent properties on which we have no
right to explore or mine. We advise U.S. investors that the SEC's
mining guidelines strictly prohibit information of this type in
documents filed with the SEC. U.S. investors are cautioned that
mineral deposits on adjacent properties are not indicative of
mineral deposits on our properties. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work
programs, geological
interpretations, receipt of property
titles, potential mineral recovery
processes, etc. Forward-looking statements
address future events and conditions and therefore involve inherent
risks and uncertainties. Actual results may differ materially from
those currently anticipated in such Statements.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Image with caption: "Map of Moss Gold-Silver Property (CNW
Group/Northern Vertex Mining Corp.)". Image available at:
http://photos.newswire.ca/images/download/20121115_C8765_PHOTO_EN_20773.jpg
Image with caption: "Proposed Development Schedule (CNW
Group/Northern Vertex Mining Corp.)". Image available at:
http://photos.newswire.ca/images/download/20121115_C8765_PHOTO_EN_20775.jpg
For further information:
Please visit http://www.northernvertex.com
or contact Investor Relations at: +1-604-601-3656 or
1-855-633-8798