Laughlin, Arizona, U.S.A. – The news lately has all been good for upstart Canadian and US-based miner Northern Vertex Mining Corp. ($NEE:CA) . For the past four years, Northern Vertex has been systematically developing its Moss Mine Gold-Silver project, located in Arizona’s historic Oatman Mining district. For investors and analysts, it appears the tree is finally about to bear fruit – and according to recently published numbers, it adds up to a lofty cache, indeed.
In a recent breaking development, Northern Vertex announced the company has completed a final feasibility study that will allow it to acquire a 70% interest in the Moss Mine gold-silver project from Patriot Gold. It’s part of the company’s overall strategy of setting their sights on entering full-scale, future gold-silver production in Arizona.
Supported by remarkably low production costs at just over U.S. $600 per ounce of gold, the projected low-cost, open-pit leach operation is expected to provide a cash payback in less than 30 months. Meanwhile, it will generate an ongoing flow of benchmark returns and profits for Northern Vertex well into the future.
To reach this watershed moment, Northern Vertex had to raise over $35 million in capital financing, used in part to support a series of multi-phase drill programs that included 323 percussion holes and 84 diamond drill holes to confirm the 377,000 ounces of gold and 4.6 million ounces of silver contained in the resource. The program also included a successful pilot production test phase on Moss that exceeded expectations, producing 4,500 ounces of gold and 20,000 ounces of silver. These achievements, along with the completion of environmental baseline studies and detailed permitting, were all essential milestones needed to confirm the economics of the project and the upcoming mine plan for the historic producer.
Mine Slated to Produce Over 40,000 Ounces in Annual Gold Production
Backed by a feasibility study that boasts lucrative economic numbers and high margins, Northern Vertex recently entered into negotiations with a primary US lender to secure key financing. Once completed, the financing will capitalize the project and put the company on track for final mine development and record future growth.
Based on its performance to date, it should come as no surprise that Northern Vertex’s management and board comprise of some of the industry’s top mining professionals and business leaders – starting with President and CEO Dick Whittington. Among his credits, the award-winning engineer took Farallon’s G-9 Mine from the discovery stage to commercial production in less than four years. During this time, Farallon's market cap rose from $40 million to $400 million.
Northern Vertex Director James McDonald was a co-founder of Alamos Gold and played a key role in the advancement of the Mulatos Mine from early exploration to full commercial production, increasing its market cap from $6 million to $1.5 billion. Alamos is now a mid-tier gold company producing over 140,000 ounces of gold annually.
Director David Farrell is a former Managing Director, Mergers & Acquisitions for Endeavour Financial, where he worked in tandem with mining entrepreneur and philanthropist Frank Giustra. At Endeavour, Farrell successfully closed over US$25 billion dollars worth of M&A transactions for junior and mid-tier natural resource companies. Giustra is now a partner with former US President Bill Clinton in the Giustra Clinton Enterprise Partnership, a respected global charity organization.
Fast Payback and High Margins Makes Moss Mine a Future Cash Cow
Northern Vertex is now ideally situated as a premier, development stage, junior gold mining company, ready to emerge as one of the industry’s newest high-growth producers. Over the coming weeks and months, investors and followers of Northern Vertex can expect a steady stream of news coming from the Moss Mine camp as the company completes its new financing and moves decisively towards its goal of entering near-term gold-silver production.
Backed by its impressive record advancing the Moss project, Northern Vertex Mining Corp. is is now considered by many industry pundits as one of the sector’s premier, undervalued and overlooked issues, trading discounted to market value. If the company is able to meet its objectives, it’s a safe bet its capital stock, similar to its bottom line, could also be poised for some exciting times ahead.
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