VANCOUVER, March 17, 2020 /CNW/ - Northern Vertex Mining Corp. (TSX.V: NEE)(OTC Nasdaq Intl.: NHVCF)(the "Company" or "Northern Vertex") is pleased to announce a mineral resource estimate update to the Company's 100% owned Moss Gold Mine (the "Property"), located in Northwest Arizona.
Highlights of the Updated Moss Mineral Resource Estimate:
Total measured and indicated mineral resources of 360,000 ounces of gold and 3,888,000 ounces of silver within 20,560,000 tons at an average grade of 0.0175 oz/st gold and 0.2171 oz/st silver;
Inferred mineral resources of 129,000 ounces of gold and 1,375,000 ounces of silver within 11,960,000 tons at an average grade of 0.0108 oz/st gold and 0.1149 oz/st silver; and
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.
2020 Moss Mine Mineral Resource Estimate
Category (0.006 oz/st Gold cut-off)
Measured and Indicated
The updated mineral resource estimate disclosed herein is effective as of December 31, 2019, and incorporates the results of the 2019 reverse circulation infill drill program (the "Program") carried out at the Property, totaling 14,140 feet over 29 holes, which were disclosed in the Company's press release dated December 18, 2019. 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. Compared to the previously disclosed mineral resource estimate contained in the Company's most recent technical report for the Property dated November 22, 2017 (the "Technical Report"), the updated mineral resource estimate of the Property 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.
The resource estimate update found that from the start of operations to December 31, 2019, mining operations depleted approximately 71,000 ounces of gold, however with drilling success, these mined ounces have been more than offset by an addition of 86,000 ounces of gold in the inferred category. In comparing the updated December 31, 2019 resource estimate to the resource estimate in the Technical Report, aggregate measured and indicated gold ounces fell by approximately 8% primarily due to depletion from mining activities, while inferred gold ounces grew by almost 300% due to the identification of new resources from infill drilling, and the deposit continues to remain open for resource expansion along strike and at depth.
Mineral Resources for the project were classified under the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves by applying a cut-off grade that incorporated mining and metallurgical recovery parameters. Pit constrained Mineral Resources are based on commodity prices, metallurgical recoveries and operating costs. The mineral resource includes depletion from mining activities up to December 31, 2019. Long-term metal prices of $1,400/oz and $18/oz for gold and silver respectively were used. The updated Mineral Resource estimate for the Property was prepared by David G. Thomas, P.Geo. (the "QP") of Mine Technical Services Ltd. ("MTS"). Resources have an effective date of December 31, 2019.
Resource Expansion Opportunities
Completion of previous exploration programs have provided the main catalyst for the Company to successfully update the mineral resource estimate and demonstrate the potential upside exploration at Moss. As a result, Northern Vertex is currently in the process of preparing permits and assessing plans for the next phase of resource expansion drilling.
Management believes that near mine exploration and infill targets have the potential to significantly increase the Property's mineral resource estimate. Between the most recent infill drilling and the current center pit, there is an area not included in the resource estimate which could be host to high-grade material in the Moss vein. The deposit is open on strike and infill drilling would follow up on positive reconciliation of gold and silver mineralization, confirmed by mining operations within the hanging wall of vein in the current pit.
Moss Mine Mineral Resource Estimate Notes
MTS reviewed Golden Vertex's quality assurance and quality control programs on the 2019 mineral resources data. MTS concluded that the collar, survey, assay, and lithology data are adequate to support mineral resources estimation. The exploration database has been reviewed and audited previously by the QP.
Domains were modelled in 3D to separate mineralized rock types from surrounding waste rock. The domains were modelled based on quartz veining and gold grade continuity above a 0.008 oz/st cut-off.
Raw drill hole assays were composited to 20 ft lengths broken at domain boundaries.
Capping of high grades was considered necessary and was completed for each domain on assays prior to compositing.
Block grades for gold and silver were estimated from the composites using ordinary kriging interpolation into 20 x 20 x 20 ft blocks coded by domain.
A tonnage factor of 12.77 ft/ton was used for material with a depth less than 12 m from surface. A tonnage factor of 12.42 ft/ton was used for all other material. The tonnage factors are based on 506 specific gravity measurements.
Blocks were classified as Measured, Indicated and Inferred in accordance with CIM Definition Standards 2014. The Mineral Resource classification parameters were converted to Imperial units from the original drill hole spacing study completed in 2014.
MTS classified blocks to the Inferred category if the block fell within 330 ft of a composite. Indicated blocks were classified if the distance to the closest composite, the second closest composite and the average distance from the two closest drill holes was less than 125 ft. These distances approximate a drill hole spacing of 165 ft (or a 50 meter drill hole spacing).
MTS classified blocks to the Measured category if the distance to the closest composite, the distance to the second closest composite, the distance to the third closest hole and the average distance from the three closest holes were all less than 50 ft (approximating an 80 ft by 40 ft drill hole spacing).
The mineral resource estimate is constrained within an optimised pit with a maximum slope angle of 65◦. Metal prices of $1,400/oz and $18.0/oz were used for gold and silver respectively. Metallurgical recoveries of 82% for gold and 65% for silver were applied. A 0.006 oz/st gold cut-off was estimated based on a total process and G&A operating cost of $7.73/t of mineralized material mined.
No assurance can be given that the estimated quantities will be produced. All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements. Summations within the tables may not agree due to rounding.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. Further details regarding such risks are described in the Technical Report.
The quantity and grade of reported inferred resources in this estimation are based on limited geological evidence and sampling. There has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Samples of drill cuttings were collected by the drilling crew using a wet rotary splitter to ensure a representative sample of each five-foot interval. Field notes were recorded for each sample documenting what was sampled and how the sample was taken. Samples were collected in bags with a sample tag inserted and delivered to a secure location prior to pick-up by Skyline Labs, a commercial laboratory in Tucson, Arizona. Skyline Labs is an ISO 9001:2008 qualified assay lab that uses and makes available internal assaying controls. Quality control consisted of duplicate samples of cuttings collected every 200 feet of drilling and certified gold standards and blanks inserted every 50 feet into the sample stream.
At the lab, rock samples are dried, crushed and pulverized to 85% passing through a 200-mesh sieve. The pulps are assayed for gold using a 30 gram split, Fire Assay (FA) and Atomic Absorption (AA) finish. Pulps from select samples were further analyzed using a 15 gram split using 41-elements ICP. Silver assays used the fire assay data. Over limit assays for both gold and silver (10 g/t for gold and 100 g/t for silver) were rerun using a gravimetric procedure. Rejects and pulps are stored at Golden Vertex's warehouse in Bullhead City for future reference.
The foregoing technical information contained in this news release has been prepared and approved in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards for Disclosure for Minerals Projects) by Messrs. Joseph Bardswich, P.Eng., a director of the Company, and David G. Thomas, P.Geo, both Qualified Persons as defined in NI 43-101.
About Northern Vertex Mining Corp.
Northern Vertex Mining Corp. is focused on low cost gold and silver production at its 100% owned Moss Mine in NW Arizona. The Company has experience across all areas of operations, mine development, exploration, acquisitions and financing of mining projects. With operations at the flagship Moss Mine achieving commercial production the Company intends to consolidate additional producing or near-term production gold assets within the Western US. Through mergers and acquisitions Northern Vertex's corporate goal is to become a mid-tier gold producer with over 200,000 ounces of gold production annually.
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: The information in this news release has been prepared as at March 16, 2020. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws – including statements regarding: estimates of mineral resources, the potential expansion of the mineral resources in the Property, exploration plans, obtaining permits and assessing plans for the next phase of resource expansion drilling, the potential increase in the Property's resources, the potential for high grade material in the area between the most recent infill drilling and the current centre pit of the Property, and the Company providing a more comprehensive exploration plan. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
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. 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.
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