Vancouver, B.C. - Northern Vertex Capital Inc. (TSX.V:NEE) ("Northern Vertex") is pleased to announce the Company has entered into a letter agreement whereby Northern Vertex has the right to earn a undivided 70% interest in the historic Moss Gold - Silver Property located in Mohave County, Arizona. The Moss Mine property is located in the Oatman Mining District which produced over 2 million ounces of gold, mainly from high-grade underground operations. Historically 305 drill holes have been drilled between 1982 and 2008 for a total of 54,390 feet. The typical grades on the drill hole results are 0.015 oz/ton to 0.088 oz/ton gold equivalent. Gold equivalents use a 1:60 gold to silver ratio.
Mineralization is contained within a steep to moderate dipping vein and vein stockwork system in true widths up to 45 feet. Drilling has defined mineralization along a strike of 5000 feet and an average depth of near 200 feet (limited drilling has traced mineralization to 800 feet). Mineralization is open to depth and along strike. Based on the results to date the Company believes that that project has the potential for an economic resource of leachable gold and silver in the order of one million ounces of gold equivalent. There is no assurance that further exploration will result in the discovery of an economic mineral resource. A non compliant NI 43-101 resource has been calculated and the Company is initiating work to confirm the resource and bring it into NI 43-101 compliance.
The foregoing geological disclosure has been reviewed by Joseph Bardswich, P.Eng (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. Bardswich is a director of Northern Vertex.
Terms of agreement
To fulfill the terms of the Exploration and Option Agreement, Northern Vertex paid Patriot Gold Corp. US$500,000 upon execution of the agreement and must spend an aggregate total of US$8 million on exploration over five years. Subsequent to exercise of the earn-in, Northern Vertex and Patriot will form a 70/30 joint venture. Financing of further work on the property will be on a proportional basis under the direction of a management committee with voting rights proportional to ownership percentage. Either party may be diluted on the basis of a standard formula if they do not contribute to the planned programs. If either party is diluted below 10 per cent, their interest will convert to a 3 percent NSR (net smelter return) royalty. An existing 3-3.5 percent NSR exists on the Moss Property.
Northern Vertex will pay a 3 percent finder's fee to an arm's length party based on the initial payment and the exploration expenditures, payable in installments quarterly. On commercial production a fee of up to US$15 per troy ounce of gold produced and up to US$0.35 per troy ounce of silver produced is payable to the finder. The fee can be purchased by Northern Vertex for US$2.4 million.
About Northern Vertex: Northern Vertex is an exploration and mining company focused on precious metals discoveries in North America. The company is presently conducting systematic exploration program on the Copley Gold Property located in the emerging Nechako Plateau region of Central British Columbia
.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Joseph Bardswich"
Director
For further information, please visit: www.northernvertex.com
or contact
Colin Clancy at Telephone: 604-601-3656
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Cautionary Note: This news release contains historical geological reporting that is Non-Compliant with National Instrument 43-101 (NI 43-101) standards of disclosure for Mining Properties. The resource estimates, assumptions and many other aspects of geology and geological reporting contained in this news release are Non NI 43-101 compliant and must not be relied upon by shareholders, potential investors or any other individual or company as the information does not meet NI 43-101 standards. The Company uses historical reports to evaluate potential of the property.
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.