|By PR Newswire||
|November 15, 2012 06:51 PM EST||
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.
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.
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.
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
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