Issue link: http://resourceworld.uberflip.com/i/162873
FIE L D R E PORT Phase I underway at Northern Vertex's Moss Mine Project by Kathrine Moore Northern Vertex Mining Corp.'s [NEE-TSXV; NHVCF-OTCQX], Moss Mine Project is abuzz with activity these days. The company is reactivating the gold-silver project with the enthusiastic support of the local community. Northern Vertex invited Resource World to visit the Moss Project in northwest Arizona, US. In 1864, the Moss Mine was the first gold discovery made in the Oatman Mining District which, according to historical records, produced up to two million ounces of gold. The Moss Mine was active into the 1930s. In the early 1980s a number of mining companies explored the district: drilling a combined 35,000 feet of reverse circulation and core drilling. In March 2011, Northern Vertex entered into an agreement with Patriot Gold Corp. [PGOL-OTCBB] to develop the Moss Project to commercial production. Northern Vortex has the right to earn a 70% interest in the project by spending US $8 million on exploration and related expenditures over the next five years. On June 18, Northern Vertex announced the filing of an amended Preliminary Economic Assessment for the Moss Mine Project. On July 4, Northern Vertex announced that the amended Technical Report and Preliminary Economic Assessment "reconfirmed key metrics and recommendations, including continuation of Pilot Plant - Phase I construction and economics of Operations - Phase II." 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 The mine plan calls for a low strip ratio (0.79:1) heap leach, open pit operation to be advanced in three phases. The phases are planned in such a way that technical, economic, permitting and funding requirements are met as development progresses. The property is host to a gold-silver stockwork, low sulphidation, epithermal vein system that outcrops at surface. The project currently employs ~50 workers, who are working day and night shifts. Construction of the pilot plant is well advanced when I arrived at the site. A crew was blasting the first ore to be placed on the heap leach pad that was being constructed nearby. The building for an onsite assay lab arrived as we were touring the site. "Grade control is critical for the success of the project," said Joe Bardswich, general project manager. He said the onsite lab will greatly shorten the turnaround time for assay results. 28 www.resourceworld.com CURRENT MOSS PROJECT MINERAL RESOURCES ARE AS FOLLOWS: Resource Category Au Eq (oz) Au (oz) Ag (oz) Tonnes Grade AuEq Measured 418,760 345,0003,688,00012,611,000 1.03 Indicated 234,840192,0002,142,000 9,978,000 0.73 Measured & Indicated 653,600 537,000 5,830,000 22,589,000 0.90 Inferred 82,020 66,000 801,0003,957,000 0.57 The company recently completed the 700 foot x 300 foot test leach pad and met its goal to have ore on it by July 1. July 5, Northern Vertex announced metallurgical results from heap leach cyanidation (column leach) test work on a low-grade bulk sample. Lower grade mineralized material was readily amenable to agglomeration – heap leach cyanidation treatment at the 95% -1/4" crush size with respect to Au recovery. Gold recovery rate was more rapid for the lower grade mineralized material vs. the higher grade mineralized material. The column leach test recoveries were 82.7% for gold and 36% for silver. The first phase, which has a capital cost of $7 million, should be completed by late fall. All Phase I operations will occur on patented property. Phase I, which will mine a portion of Hill #1, will process a permitted 90,000 tonnes of ore, at a rate of 1,000 tonnes per day. Hill #1 has been extensively drilled by past operators, but Hill #2 and Hill #3 and the areas to the east and west of these hills were largely unexplored. Patriot and Vertex have drilled in excess of 500 holes since 2004 to extend the areas of known mineralization, but the deposit is open along strike and down dip. July 03, 2013 Northern Vertex announced drill results from its recently completed 15-hole, 2,527-metre program aimed at extending the near-surface, stockwork style mineralization in the western section of the deposit and to test for deep extensions of the Moss mineralization. Results also provide information from two areas of inferred mineralization near the eastern end of the planned Phase II pit. Highlights include: Hole AR-195 intersected 36.6 metres of 0.91 g/t gold and 12.1 g/t SEPTEMBER 2013