VANCOUVER, Sept. 21, 2012 /CNW/ - Northern Vertex Mining Corp. (the "Company") (TSX.V: NEE) (OTCQX: NHVCF). As a result of a review by the British Columbia Securities Commission ("BCSC"), the Company is issuing the following News Release to clarify the Company's technical disclosure.
Disclosure of Mineral Resources and Historical Estimates
Moss Property, Arizona. No clarification or additional disclosure was requested by the BCSC in connection with the Company's current National Instrument ("NI") 43-101 compliant measured and indicated resource estimate of 956,800 ounces of gold equivalent ("AuEq") contained in 30,879,000 tonnes having an average grade of 0.96 AuEq g/t and an inferred resource estimate of 199,100 AuEq ounces contained in 7,096,000 tonnes having an average grade of 0.87 g/t (ref. Company News Release dated September 10, 2012) (the "Updated Resource Estimate"). However, prior to the Updated Resource Estimate, the Company's previous NI 43-101 resource estimate (which has been superseded by the Updated Resource Estimate), detailed in the Company's News Release dated October 20th, 2011 (the "2011 Resource Estimate"), consisted of 483,792 ounces in the indicated category and 106,628 in the inferred category. Inadvertently, these numbers were combined (590,420 ounces AuEq) in the header of the News Release and in the corporate presentations; this oversight has been immediately addressed in the Company's corporate presentation and investor relations materials. NI 43-101 requires the Company to disclose the effective date of each estimate on mineral resources and to reference the report directly; this has been accomplished. The parameters of the 2011 Resource Estimate are detailed in the NI 43-101 resource estimate prepared by Scott E. Wilson Consultants Inc. ("SEWC") with an effective date of October 20, 2011 and filed on SEDAR on December 5, 2011. The information will be reiterated in the updated NI 43-101 resource estimate (being the Updated Resource Estimate) prepared by SEWC (effective date of September 10th, 2012) to be filed on SEDAR on or before October 25th, 2012.
Lemhi Property, Idaho. The Company's website and corporate presentation refer to a "Positive Pre-Feasibility Report" prepared by Kappes, Cassiday & Associates ("KCA") in 1996 for the Humbug deposit, contained within the Lemhi Property. The Company should have indicated that the aforementioned report is historical in nature and does not meet or adhere to NI 43-101 disclosure requirements. The Company has addressed this oversight and advises readers that any reference to Pre-feasibility should not be relied upon as it may continue to be found in the public domain.
In its corporate presentation completed after November 11th, 2011 concerning the Lemhi Property, the Company referenced estimates of a historical non-compliant NI 43-101 resource of 1.21 million ounces contained gold as reported by Pincock, Allen and Holt ("PAH") in 1996. The Company inadvertently neglected to provide a more detailed analysis of this number in its corporate presentation. This more detailed analysis was reported in the Company's News Release dated November 11th, 2011 and the resource estimate was described in that originating press release as: …[consisting] of 32.36 million short tons at a grade of 0.0375 ounces per short ton for 1.21 million contained ounces of gold, as reported by PAH. The Company also stated that: In 1996, KCA conducted a non-compliant Pre-Feasibility Study on the Humbug deposit based on 15,675,000 tons of ore, and an approximate 6-year mine life using 1996 economic parameters. Furthermore, the Company alerted the reader to the nature of these historical estimates with the disclaimer: Northern Vertex cautions that a qualified person has not done sufficient work to classify the historical estimate, or has substantiated any data as it pertains to a pre-feasibility study, as current mineral resources or mineral reserves, therefore, it should not be relied upon on as actual resource or reserve estimates, and should be construed only as conceptual in nature. The Company is treating the historical estimate only as a guideline in determining potential future mineral resources or mineral reserves and not as current mineral resources or mineral reserves.
The BCSC raised a concern that disclosure related to the Lemhi Property and in particular the Humbug deposit portrays a "best case" historical estimate (the 1.21 million ounces historical estimate was reported by American Gold Resources and was prepared by PAH in 1996). The Company's NI 43-101 Technical Report dated November 16, 2011 and filed on SEDAR on December 6, 2011 referred to the PAH estimate and a subsequent historical estimate prepared by Independent Mining Consultants in 1996, which reported 15 million short tons at a grade of 0.036 ounces per short ton, containing 542,600 ounces of gold. The Company addressed this issue in its November 11th, 2011 News Release by referencing the 1996 KCA (historical and non-compliant) Pre-feasibility Study which defined a deposit based on 15,675,000 tons of ore, and an approximate 6-year mine life (equating to approximately 550,000 mineable ounces using 1996 economic parameters).
In those instances where the Company has revised, retracted, clarified or updated previous disclosure, the Company is advising readers not to rely on such dated statements as they may continue to be found in the public domain.
Failure to Name the Qualified Person
The Company inadvertently omitted the name of a qualified person for the purpose of NI 43-101, Standards of Disclosure for Mineral Projects on its website, corporate presentation and investor relations material. This oversight has been addressed as follows and includes this News Release: The geological disclosure has been reviewed and verified by the Company's Chief Geologist, Dr. Robert Thompson, PhD, P.Eng (a qualified person for the purpose of NI 43-101, Standards of Disclosure for Mineral Projects).
About Northern Vertex: Northern Vertex is a gold exploration and development company operating principally in the United States and Canada. The Company comprises an experienced management group with a strong background in all aspects of acquisitions, exploration, development, financing and operation of precious metal mining projects. The Company's stated mandate is to acquire, develop and advance gold projects that demonstrate near term production potential and long-term sustainable growth.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX MINING CORP.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
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 US investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. US 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 contact Investor Relations at: 604-601-3656 / 1-855-633-8798 or visit www.northernvertex.com