“Improved Infrastructure and Enhanced Economics”
February 23, 2017,Vancouver, B.C. - Northern Vertex Mining Corp. (TSX.V:NEE) (OTC:NHVCF) (the “Company” or “Northern Vertex”) is pleased to provide an update on its Mine Optimization Plan at the company's 100% owned Moss Mine gold-silver project (“Moss Mine”), located in the historic Oatman Mining district in North West Arizona.
The Moss Mine, which is scheduled to commence commercial gold-silver production in Q4 2017, has a capital cost estimated at US$33 million, and is expected to generate an average annual production of 42,000 oz gold Eqv. with an all-in sustaining costs of US$662/oz gold and an after-tax IRR of 48% (based on US$1,250/oz gold and US$20/oz silver).
Highlights of the Northern Vertex Optimization Plan:
- Powerline to Mine Site
- Sale and distribution of Aggregate
- Upgrade and maintain the Silver Creek and Moss Mine Access Road
- Reduction of fossil fuel emissions
- Job creation in Local Communities and the State of Arizona
- US$16M in savings in first 5yrs; significant impact to current 48% IRR
Northern Vertex President and CEO, Kenneth Berry stated “We are very pleased to implement a detailed optimization plan that will significantly enhance the overall economics of the Moss Mine in addition to positively impacting the local community. The energy cost savings, road improvements and reduction of fossil fuels derived from the program further supports our mandate to adhere to the highest level of operational efficiency and social and environmental responsibility.”
Powerline to Mine Site
The Moss Mine Feasibility Study and construction plans have factored in the use of diesel generators for the operation of the Mine Site. The installation of a powerline directly to site to deliver utility power will result in an estimated operational savings of US$16 million in the first 5 years of operation and will make a significant positive impact to the project’s after-tax IRR that is currently estimated at 48%.
The sale and distribution of Aggregate and Rip Rap within the Region
The Moss Mine is a potential source of aggregate for numerous applications including road construction, rip rap, concrete and asphalt. Northern Vertex is currently negotiating with a local aggregate company for the sale and distribution of its barren rock as a source of aggregate and rip rap for the surrounding region.
Upgrade and maintain the Silver Creek Road
The negotiation of an Aggregate Agreement is contemplated to include the upgrade and maintenance of the Silver Creek Road and the tertiary County Mine Access Road, resulting in a safer road. Discussions of potential road upgrades include a crushed rock/gravel base and removal of numerous protruding cobbles and boulders, the direct benefits to Northern Vertex include a reduction in maintenance costs to operational vehicles and those of our suppliers and local community. Following initial discussions, both City and County officials and Engineering personnel have indicated their full support for the road “Improvement Plan”.
Reduction of fossil fuel emissions
The Moss Mine Feasibility Study; Plan of Operations and Air Quality Permit state the electric power source proposed for all mine and process operations as on-site generators powered by Tier IV diesel engines (the most environmentally advanced engines available today). However, the installation of a direct powerline, would eliminate the need for the diesel gen-sets, resulting in improved air quality by decreasing emissions, and reducing operating costs significantly.
Job creation in Local Communities and the State of Arizona
The mining, processing and aggregate activities are expected to create 100+ direct jobs for the local region and the State of Arizona. In addition, ancillary benefits from processing the waste rock include the provision of a lower cost aggregate for both civic and private construction projects in the Bullhead City Region.
In addition to the County’s permission, the construction of the powerline requires the issuance of a Right of Way (“ROW”) Permit from the Bureau of Land Management. Upgrading of the County’s tertiary Mine Access Road to eliminate safety hazards will involve disturbance beyond the existing footprint of the road and will also require a ROW permit. Engineering design, an integral part of the ROW permit applications is underway. Fieldwork for the requisite Cultural and Biological Surveys were recently completed.
The foregoing technical information contained in this news release has also been reviewed and verified by Mr. Joseph Bardswich, P.Eng., General Manager - Moss Project, and a Qualified Person (“QP”) for the purpose of National Instrument 43-101 (Disclosure Standards for Mineral Projects).
About Northern Vertex
Northern Vertex Mining Corp. is an exploration and mining company focused on the reactivation of its 100% owned Moss Mine Gold/Silver Project located in NW Arizona, USA. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
"Kenneth Berry "
President & CEO
For further information, please visit www.northernvertex.com
or contact Investor Relations at: 604-601-3656 or at 1-855-633-8798.