Company Further Announces $2.2 Million Non-Brokered Private Placement Financing
Northern Vertex (NEE-TSX.V) and Kootenay Gold (KTN-TSX.V) are pleased to announce drill results from an 1100 meter drill program on its Copley Gold property in British Columbia's Nechako Plateau. Of the 11 holes Northern Vertex drilled on its Copley Property in central BC, 9 intersected gold including a 33 m intersection of 0.271 g/t Au in hole 01-04 (see accompanying table); of the 33 m: 5.6 m averaged 0.68 g/t Au, and 1.4 m averaged 1.57 g/t Au. Drilling focused on the Smoking Pipe target and results indicate the mineralized zoning is near surface and the zones of gold-rich rocks thicken to the west.
The drill program confirmed that gold occurs in silicified volcanic rocks containing disseminated- or vein-pyrite and anomalous concentrations of zinc (Zn) and mercury (Hg). These are the same associations observed at Richfield's Blackwater project located 40 km south of Copley.
States Bob Thompson (P Eng, PhD), consulting geologist for Northern Vertex: "We are very pleased and excited with drill assays returned from the current program. Results confirm Copley's geological characteristics mirror that of Richfield's Blackwater discovery 40km to the south. Moreover, the significant gold intersections identified over a large area, combined with the thickness of the intervals underscore Copley's significant bulk tonnage gold potential".
Further bolstering Copley's near-surface bulk tonnage potential, drilling at the Smoking Pipe target outlined a sizeable volume of auriferous rock measuring 200 m by 100 m by 50 m depth. Additionally, the program demonstrated that gold can occupy intersections 10's of metres thick and is not confined to narrow, widely-spaced vein-like features. Since the Smoking Pipe target is open to the west beneath overburden, additional drill testing will be required to properly estimate its size.
Drilling follows results from previous exploration on Copley that demonstrated it is a large gold-bearing epithermal system measuring 7 km long x 2 km wide within the 2,926 hectare property. The sampling program traced extensive areas of gold mineralization on surface, including one prospective area measuring 55 m by 140 m. 11 sample sites returned values greater than 1 g Au/ton including one at 14 g Au/ton. 23 additional sites returned values between 0.05 and 1.0 g Au/ton in only one of several goldbearing zones identified thus far.
Northern Vertex further reports the Company has identified 3 additional drill-ready targets associated with silicified, pyritic, gold-bearing surface samples. The drill targets occur on the shoulder of an annular magnetic low extending west of the Smoking Pipe target. The existence of a "magnetic low" is considered significant as Richfield's Blackwater property 40 km to the south also occurs on the margin of a magnetic low.
A planned upcoming phase II drilling program by Northern Vertex will prioritize the newly identified targets as the Company focuses on vectoring into the feeder systems controlling the gold dissemination on Copley.
Northern Vertex also announces a Non-Brokered private placement (the "Private Placement") of up to approximately 3.15 million units (each "Unit") at a purchase price of $0.70 per Unit, for aggregate gross proceeds to the Company of up to $2,200,000.
Each Unit will consist of one common share ("Common Share") of Northern Vertex and one-half of one transferable share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at an exercise price of $1.15 for a period of 24 months from the closing date of the Private Placement. The expiry date of the Warrants may be accelerated, at the sole option of the Company, to 21 business days following the date on which the Company gives notice that it's common shares have closed for 20 consecutive trading days at a price of CAN$1.50 or greater. Finder's fees in cash or units and finder's warrants may be paid in connection with the Private Placement. All of the securities issued pursuant to the Private Placement will be subject to a minimum four month hold period.
The net proceeds from the Private Placement will be used to finance additional work on the Company's Copley property, its other properties and for general working capital. The Private Placement and payment of any finder's fee are subject to acceptance by the TSX Venture Exchange.
Northern Vertex has the right to earn a 60% interest in the Copely Gold Property in exchange for issuing a total of 800,000 common shares of Northern Vertex to Kootenay Gold Inc; and financing $2.2 million of exploration expenditures on the property within a four year period
About Northern Vertex: Northern Vertex is a Canadian exploration and mining company focused on precious metals discoveries in North America. The company is presently conducting systematic exploration programs on two prospective joint-venture properties in British Columbia, Canada: The Copley Gold Property located in the emerging Nechako Plateau region of Central British Columbia and the Deer Creek Gold Property located in the West Kootenay region of Southern British Columbia. Table 1: A synopsis of drill results from Copley Property. All analyses were performed by ACME Laboratories Inc., Vancouver, using industry standard protocols.
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The foregoing geological disclosure has been reviewed and verified by Dr. Robert Thompson, Phd, P.Eng, a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
For further information, please visit: www.northernvertex.com
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 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.