Issue link: http://resourceworld.uberflip.com/i/134727
NORTHERN VERTEX MINING CORP. [NEE-TSXV; NHVCF-OTCQX] RAINY RIVER RESOURCES LTD. [RR-TSX] NPV (5% Discount)................ US $110 million IRR.......................................(Pre-Tax)117.9% Payback period.............................. 1.25 years Cash Costs........................................ $490/oz Capital Costs..............................$26.6 million Shares Outstanding......................52,563,348 NPV (5% Discount)......................$931 million IRR (After-Tax)......................................23.7% Payback period................................ 3.2 years Cash Costs..............................US $771/oz Au Capital Costs...............................$713 million Shares Outstanding......................99,973,216 NOTE: Assuming US $1,500/oz Au & US $30/oz Ag. Figures are on a 100% basis. NOTE: Assuming US $1,400/oz Au and US $25/oz Ag Northern Vertex Mining Corp. has announced the results of a Preliminary Economic Assessment for its Moss Mine gold-silver project in northwest Arizona. Northern Vertex can earn a 70% interest in the property from Patriot Gold Corp. [PGOL-OTCQX] by spending $8 million and preparing a feasibility study. After the earn-in, funding will be on a 70:30 proportional basis. The company has spent $5.6 million to date. The PEA evaluated the economics of an open pit mining operation using heap leach processing technology. In preparation for commercial production, a pilot plant scale operation (Phase I) is planned that will include metallurgical studies. In addition, a mine life extension or expansion (Phase III) will be investigated. The pilot plant scale operation will be designed to test the economics and viability of heap leaching the ore. Approximately 90,000 tonnes of mineralized rock will be processed at this stage at a rate of 1,000 tpd. Both higher grade and lower grade material will be tested in the pilot plant stage of operations. Commercial operations (Phase II) are envisaged at a production rate of 5,000 tpd to produce approximately 42,000 ounces of gold/year. Mine life is estimated to be five years. There would be a strip ratio (waste:ore) of 1.6:1. NI 43-101 compliant measured and indicated resources, at a 0.3 g/t gold cutoff, stand at 22,589,000 tonnes grading 0.90 grams gold/tonne gold equivalent/ tonne, or 0.74 grams gold/tonne and 8.03 grams silver/tonne. Inferred resources are 3,957,000 tonnes grading 0.64 grams gold equivalent/tonne, or 0.57 grams gold/ tonne and 6.65 grams silver/tonne. 12 www.resourceworld.com LATE BREAKING NEWS – On May 31, Rainy River received a friendly takeover bid from New Gold Inc. [NGD-TSX]. Rainy River Resources Ltd. has received a positive feasibility study for its 100%owned Rainy River gold project 80 km south of Kenora, northwest Ontario. The mine is envisaged as both an open pit and underground operation. Open pit proven and probable reserves total 113.2 million tonnes grading 0.97 grams gold/tonne and 2.65 grams silver/tonne, for 3,525,225 ounces gold and 9,646,772 ounces silver. Underground proven and probable reserves are 3.1 million tonnes grading 5.07 grams gold/tonne and 6.69 grams silver/ tonne, for 506,283 ounces gold and 668,240 ounces silver. For the first 10 years of operation, the average annual production would be 326,000 ounces of gold and 494,000 ounces of silver. Over that period, mill head grades would be 1.46 grams gold/tonne and 3.19 grams silver/tonne, and an operating strip ratio of 2.8 to 1, which excludes overburden and capitalized waste. Raymond Threlkeld, President and CEO, said, "The higher grades mined in the open pit and underground will enable the average cash costs in the first five and 10 years to be US $413/oz and US $468/oz of gold, including royalties and net of silver credit, respectively. The feasibility study assumes processing an average 21,000 tpy from a combination of open-pit, underground and stockpiled material. The mine schedule has two years of preproduction and envisions a mine life of 16 years, including six years of reclamation from stockpiles, excluding the preproduction period. JUNE 2013