VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/04/13 -- Northern Vertex Mining Corp. (the "Company") (TSX VENTURE: NEE) is pleased to provide a construction update on its phased project development plans for the reactivation of the Moss Mine Gold-Silver project located in Mohave County, Arizona, USA with highlights as follows:
-- Amended Technical Report and Preliminary Economic Assessment ("PEA") reconfirmed key metrics and recommendations, including continuation of Pilot Plant - Phase I construction and economics of Operations - Phase II-- Engineering, Procurement and Construction Management contract awarded-- Construction of pilot plant ponds and process facilities - Phase I underway-- 700 foot x 300 foot leach pad completed-- Initial loading of fine crushed (95% -1/4 inch) agglomerated mineralized material achieved June 28, 2013, ahead of schedule-- Target date for initial treatment of solution July 18, 2013-- Operations team strengthened
Amended Project Economics:
The Company filed an Amended Preliminary Economic Assessment on June 18, 2013 (please see News Release dated June 18, 2013) reconfirming the principal conclusions of the original PEA. Highlights of the PEA economics for Phase II (at $1500 Au and $30 Ag) are as follows:
-- IRR of 117.9% (pre-tax, pre-royalty)-- NPV of US $110 million (pre-tax, pre-royalty) (at 5%)-- Payback of 15 months (pre-tax, pre-royalty)-- Capex of US $26.6 million-- Cash costs of US $490/oz
Recommendations include the continuation of current activities on the Pilot Plant - Phase I and the advancement of project economics including conducting Pilot Plant operations to further evaluate test mining, heap leach processing and gold and silver recovery.
The Company reiterates that the Amended PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and that there is no certainty that the preliminary economic assessment will be realized.
Construction Commencement of Pilot Plant - Phase I:
Following Board approval, construction commenced May 1, 2013 on the infrastructure necessary to carry out pilot scale open pit mining and heap leach processing of an aggregate of approximately 90,000 tonnes of mineralized rock. The Pilot Plant leach pad, designed to test the economic and technical viability of heap leaching finely crushed, agglomerated material, is approximately 700 feet in length and 300 feet wide. The phase I pit will be surface mined at a strip ratio of 0.79:1 and a production rate of 1,000 tonnes of mineralized rock, crushed to 95% -1/4 inch, per day. All activities will be restricted to patented property.
A contract has been signed with CDM Constructors Inc., a division of CDM Smith, for the Engineering, Procurement, and Construction Management (EPCM) of the Moss Mine Gold-Silver Project, Phase I, including oversight of the design and construction of the Phase I heap leach pad, process ponds, canopy structures and pumping systems. Engineering has been advanced from a 30% completion level to approximately 60% completion and is now supporting the design-build construction effort that is underway, including procurement of equipment, supplies and subcontractors.