"Improved Infrastructure and Enhanced Economics"
VANCOUVER, Feb. 23, 2017 /CNW/ - Northern Vertex Mining Corp. (TSX.V:NEE) (OTC:NHVCF) (the "Company" or "Northern Vertex") is pleased to provide an update on its Mine Optimization Plan at the company's 100% owned Moss Mine gold-silver project ("Moss Mine"), located in the historic Oatman Mining district in North West Arizona.
The Moss Mine, which is scheduled to commence commercial gold-silver production in Q4 2017, has a capital cost estimated at US$33 million, and is expected to generate an average annual production of 42,000 oz gold Eqv. with an all-in sustaining costs of US$662/oz gold and an after-tax IRR of 48% (based on US$1,250/oz gold and US$20/oz silver).
Highlights of the Northern Vertex Optimization Plan:
- Powerline to Mine Site
- Sale and distribution of Aggregate
- Upgrade and maintain the Silver Creek and Moss Mine Access Road
- Reduction of fossil fuel emissions
- Job creation in Local Communities and the State of Arizona
- US$16M in savings in first 5yrs; significant impact to current 48% IRR
Northern Vertex President and CEO, Kenneth Berry stated "We are very pleased to implement a detailed optimization plan that will significantly enhance the overall economics of the Moss Mine in addition to positively impacting the local community. The energy cost savings, road improvements and reduction of fossil fuels derived from the program further supports our mandate to adhere to the highest level of operational efficiency and social and environmental responsibility."
Powerline to Mine Site
The Moss Mine Feasibility Study and construction plans have factored in the use of diesel generators for the operation of the Mine Site. The installation of a powerline directly to site to deliver utility power will result in an estimated operational savings of US$16 million in the first 5 years of operation and will make a significant positive impact to the project's after-tax IRR that is currently estimated at 48%.
The sale and distribution of Aggregate and Rip Rap within the Region
The Moss Mine is a potential source of aggregate for numerous applications including road construction, rip rap, concrete and asphalt. Northern Vertex is currently negotiating with a local aggregate company for the sale and distribution of its barren rock as a source of aggregate and rip rap for the surrounding region.
Upgrade and maintain the Silver Creek Road
The negotiation of an Aggregate Agreement is contemplated to include the upgrade and maintenance of the Silver Creek Road and the tertiary County Mine Access Road, resulting in a safer road. Discussions of potential road upgrades include a crushed rock/gravel base and removal of numerous protruding cobbles and boulders, the direct benefits to Northern Vertex include a reduction in maintenance costs to operational vehicles and those of our suppliers and local community. Following initial discussions, both City and County officials and Engineering personnel have indicated their full support for the road "Improvement Plan".
Reduction of fossil fuel emissions
The Moss Mine Feasibility Study; Plan of Operations and Air Quality Permit state the electric power source proposed for all mine and process operations as on-site generators powered by Tier IV diesel engines (the most environmentally advanced engines available today). However, the installation of a direct powerline, would eliminate the need for the diesel gen-sets, resulting in improved air quality by decreasing emissions, and reducing operating costs significantly.
Job creation in Local Communities and the State of Arizona
The mining, processing and aggregate activities are expected to create 100+ direct jobs for the local region and the State of Arizona. In addition, ancillary benefits from processing the waste rock include the provision of a lower cost aggregate for both civic and private construction projects in the Bullhead City Region.
In addition to the County's permission, the construction of the powerline requires the issuance of a Right of Way ("ROW") Permit from the Bureau of Land Management. Upgrading of the County's tertiary Mine Access Road to eliminate safety hazards will involve disturbance beyond the existing footprint of the road and will also require a ROW permit. Engineering design, an integral part of the ROW permit applications is underway. Fieldwork for the requisite Cultural and Biological Surveys were recently completed.
The foregoing technical information contained in this news release has also been reviewed and verified by Mr. Joseph Bardswich, P.Eng., General Manager - Moss Project, and a Qualified Person ("QP") for the purpose of National Instrument 43-101 (Disclosure Standards for Mineral Projects).
About Northern Vertex
Northern Vertex Mining Corp. is an exploration and mining company focused on the reactivation of its 100% owned Moss Mine Gold/Silver Project located in NW Arizona, USA. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Kenneth Berry "
President & CEO
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.
Forward-Looking Statements: This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
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. This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
SOURCE Northern Vertex Mining Corp.
For further information: please visit www.northernvertex.com or contact Investor Relations at 604-601-3656 or at 1-855-633-8798