VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 16, 2014) - Northern Vertex Mining Corp. (the "Company") (TSX VENTURE:NEE) (OTCQX:NHVCF) is pleased to announce that it has secured an option on the adjacent Silver Creek property, located to the east and southeast of the current Moss claim block on the Company's Moss Mine Gold-Silver earn-in property located in Mohave County, Arizona, USA.
The Silver Creek Property is 1450 hectares (ha) in size and consists of 180 claims (1198 ha) and one leased State section (259 ha). It adjoins the Moss property to the east and southeast and is located between the Moss property and the main Oatman mining district.
The Silver Creek property has good exploration potential for both Moss type disseminated low grade gold deposits and high grade bonanza type deposits of both the Oatman, low sulfidation type deposits (about 2.2 million ounces produced at average grade of 0.58 opt gold)(1) and Goldfields, high sulfidation type deposits (about 4 million ounces produced at an average grade of 1.0 opt gold)(2).
Dick Whittington, President & CEO Northern Vertex Mining Corp., states, "The Silver Creek property is in an exciting addition to the Company's interests in the region and will add to our potential to make further gold discoveries. We look forward to evaluating the property in conjunction with our Moss Mine property wide exploration programme. The Blue Sky potential of the combined properties is significant and we are hopeful of establishing that potential as reality."
(1) Durning and Buchanan, The Geology and Ore Deposits of Oatman, Arizona. Arizona Geological Digest Volume 15, 1985.
(2) Rockwell, Barnaby W., The Goldfield Mining District, Nevada: An Acid Sulfate Bonanza Gold Deposit. U.S.G.S. October 2000.
The property contains exploration potential in the following areas:
- The eastern extension of Moss vein (~760 m strike length)
- Several known epithermal veins with grades up to 4 g/t Au in surface samples
- 5 target areas within a large (approximately 1.5km by 5km) high-level, high-sulfidation alteration system with anomalous Au, Ag, Hg, F levels.
- Widespread gold anomalies up to 997 ppb exist. Alteration and textures are indicative of high-level mineralization above possible blind bonanza ore bodies.
- Exploration targets include extension of the Moss vein system and the extension of the Gold Road vein structure where it intersects the United Eastern structure (Gold Road produced 484,000 ounces at 0.32 opt gold to 1942 and United Eastern produced 769,000 ounces at 1.15 opt gold)(1).
To date, only surface work has been carried out (rock sampling, mapping, geophysics). No drilling has taken place. The Company will be developing a comprehensive ground level exploration plan to evaluate the various exploration targets mentioned above. This will complement the Company's property wide exploration plan described in an earlier news release (dated April 1st, 2014) that outlined the prospectivity of the Moss property as a result of a recent Airborne Magnetics Survey and will run concurrent with completion of the feasibility study and development of the Phase II - Operations phase of the Company's business plan.
This property, given its strategic location, will add to the Company's already significant exploration upside in the region. Given that the Moss Mine structure contains 654,000 ounces of M+I AuEq resources and 82,000 ounces of inferred AuEq resources (see below for a detailed breakdown and assumptions used) along 1400 meters of mineralized structure and that the United Eastern, Tom Reed and Gold Road mines produced over 2.0 million ounces along a combined strike length of approximately 2 kilometers of mineralized structure, the Blue Sky exploration potential of the combined Moss mine property and the Silver Creek property can be considered highly prospective.
Terms of The Option Agreement
The mineral lease and option agreement is between the Company and La Cuesta International Inc. (LCI) of Kingman, Arizona and is dated as of May 7, 2014. The key terms are:
- Term of 35 years.
- US$5,000 cash on execution plus 100,000 Northern Vertex shares (subject to TSXV approval).
- Annual expenditures commence in year 1 at US$10,000 in cash plus a work commitment of US$15,000 and increase gradually to US$50,000 with no work commitment in year 5. In year 3, a one-off $200,000 work commitment is included.
- A production royalty will apply as follows: 1.5% NSR on claims owned 100% by LCI and 0.5% NSR on third party claims within the claim block. NSR rates will be reduced by half once US$4 million is paid in total royalties. All payments other than work commitments are credited against the royalty.
- Option to purchase. Northern Vertex can acquire the claims at any time for US$4 million in any combination of aggregate royalty payments and lump sum payments at its sole discretion.
The Company's operations currently focus solely on the leaching of gold from the pilot plant leach pad operation. The Company continues to exercise fiscal responsibility and has reduced costs, corporately and in the field, in order to preserve cash in the current market environment. Work on the Feasibility Study continues with the immediate focus on reviewing and enhancing the Company's block model based on the most recent drilling (see News Release dated October 17, 2013); and additional geological information made available as a result of the Company's Phase I - Pilot Plant operations.
The foregoing geological disclosure has been reviewed and verified by James McDonald, P.Geo. Mr. McDonald is a director of Northern Vertex and a Qualified Person ("QP") for the purpose of National Instrument 43-101 (Disclosure Standards for Mineral Projects).
Moss Mine Mineral Resource Estimate:
The Moss Mine deposit is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 200 meters vertically. The Moss mineral resources as estimated in the Company's recent preliminary economic assessment as outlined in the Company's News Release dated June 18, 2013, are as follows:
- Gold equivalency is based on a silver: gold ratio of 50:1 and assumes 100% recovery of all metals.
- A 0.30 g/t Au cut-off grade was used.
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves estimates.
- Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
- Resources were based on 36,805 meters of drilling in 658 exploration drill holes and 530 meters of channel sampling. There were a total of 7,677- 5 meter composite samples used in the estimation of gold and silver. Metal Mining Consultants Inc. (MMC) used Inverse Power Distance (ID3) as the preferred estimation technique for the Moss Project.
- MMC capped gold assays, prior to compositing 5 meter samples, at 17 grams per tonne and silver at 140 grams per tonne in order to limit the effect of high grade outlier grades in the estimation of mineral resources.
- MMC applied Industry Standards in the selection of the drill hole and assay information gathered from historic and current exploration programs in its determination of Measured Mineral Resources, Indicated Resources and Inferred Resources.
About Northern Vertex:
Northern Vertex Mining Corp. is a Canadian based exploration and mining company focused on the reactivation of the Moss Mine Gold-Silver Project located in NW Arizona, USA where the Company has the right to earn-in to a 70% property interest through a Joint Venture with Patriot Gold Corp. The Moss Mine Gold-Silver Project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 220 meters vertically. It is a potential heap leach, open pit project being advanced under a three-phase business plan, specifically designed to ensure that technical, economic, permitting and funding requirements are met prior to each phase proceeding. The Company's management comprises an experienced 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.
To view photos of the Moss Mine Gold-Silver Project, please click on the following link:
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note About Forward Looking Information
This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
Cautionary Note to U.S. Investors: This news release uses the terms "Measured", "Indicated", and "Inferred" resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. U.S. investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
2014 number 06