Issue link: http://resourceworld.uberflip.com/i/162873
Construction of heap leach pad at Northern Vertex's Moss Mine Project, Northwest Arizona. Photo by Kathrine Moore silver (1.16 g/t AuEq) Hole AR-187 intersected 18.3 metres of 1.80 g/t gold and 16.4 g/t silver (2.13 g/t AuEq) Hole AR-200 intersected 12.2 metres of 2.03 g/t gold and 47.2 g/t silver (2.97 g/t AuEq) Now that Phase I is underway, the permitting process for the four year, Phase II program will begin. Phase II will see the start of commercial operations and is targeted to begin in Q3 2014. Phase II, which has a capital cost of 22.6 million, will see production increase to 5,000 tpd and will include an expansion of the heap leach pad. Phase III, which is dependent on the success of exploration drilling, will extend the life of the mine and possibly see the development an underground operation and production of 5,000 to 7,500 tpd. The project has several advantages going for it. All necessary infrastructures is nearby; the project is just far enough from town that it won't be visible from the community. Phase I has all the water it needs and well drilling for Phase II has been successful. The community of Bullhead City is behind the company 100% and at the time of my visit, the Vice Mayor of Bullhead City, Mark Clark, stopped by. He said, "Everyone in town is excited about the project." He told us that many locals worked in lower paying jobs and were looking forward to the opportunities the mine would bring. Leianne Emery, Investor Relations Manager for Northern Vertex, said she was receiving applications for employment on a daily basis. When the mine is in operation it will be the third largest employer in the area. June 27 was the closing of public comments on the project and John Masterson, Chief Information Officer for Northern Vertex and an area resident for 23 years, said that didn't anticipate any issues. n SEPTEMBER 2013 Focused on Developing the Harper Creek Copper-Gold-Silver Deposit in British Columbia Detailed Feasibility Study completed March 2012, restated and amended January 2013 • Total Proven and Probable Reserve of 704.4Mt @ 0.262% Cu (0.14% Cu cut-off ), 0.029g/t Au and 1.14g/t Ag • Estimated production over life-of-mine: 3.63 billion lbs Cu, 372,000 oz Au and 14 million oz Ag contained in concentrate. • Estimated after tax NPV8 $465.3 million, IRR 17.0%; based on metal prices of US$2.50/lb Cu, US$1,250/oz Au and US$20/oz Ag, and 0.86:1 US/CDN exchange rate • Mine life 28 years at a milling rate of 70,000 tonnes/day • Stripping ratio 0.81:1 life-of-mine • Capital costs are estimated at C$838.95 million in Q4 2011 dollars, including contingency • Adjacent rail, road, power and town infrastructure • Project is 100% owned by Yellowhead Mining* • Senior management has extensive international experience with large scale open pit copper projects • Excellent potential to significantly expand the resource * Subject to 3% NSR royalty capped at $2,500k, adjusted for inflation, plus a further 2.5% NSR royalty on approximately 1.5 million tonnes of ore which is expected to be mined beginning in year 16 of the mine plan. Ronald Handford, Executive Vice President, Corporate Development T: 604.681.1709 info@yellowheadmining.com www.yellowheadmining.com TSX: YMI OTCQX: YHMGF Resource World - one third page square: 4.875"W x 4.7"H Tech: sharon@xy3design.com 604-925-9232 www.resourceworld.com 29