Northern Vertex Mining Corporation announced Tuesday its first gold pour at the Moss Mine.
“The first gold pour at the Moss Mine is an exciting milestone for all stakeholders,” said Kenneth Berry, Northern Vertex president and CEO, in a release from the company. “The transition to U.S. gold producer is the culmination of six years of development, millions in economic activity and a dedication to safety with more than 1,967 days without a lost time accident. Furthermore, the commitment of up to $100 million by our partner Sprott for acquisitions and development positions Northern Vertex to aggressively pursue our goals for 2018.”
Northern Vertex Mining Corp., the parent company of Golden Vertex Corp., is the owner of Moss Mine, an open-pit gold and silver mining operation off Silver Creek Road east of Bullhead City.
In addition to the Moss Mine $20 million facility, investor Sprott Lending has agreed to provide up to $100 million in financing for future development projects and acquisitions.
“As one of the largest investors dedicated to the natural resource sector, Sprott is excited to continue its partnership with Northern Vertex on future acquisitions and developments,” said Narinder Nagra, Sprott managing partner. “Our partnership with the Northern Vertex team is consistent with our strategy of providing innovative and flexible capital to maximize the value of exceptional projects.”
Golden Vertex also announced a non-brokered private placement of up to 3,846,153 common shares for aggregate gross proceeds of up to $2 million (Canadian), according to the release.
Northern Vertex intends to use the net proceeds of the private placement to conduct an exploration program in the Oatman District and for general working capital purposes.
The Moss Mine gold-silver project encompasses 15 patented lode claims and 465 unpatented lode claims, targeting gold and silver mineralization associated with the Moss Vein, the west extension and adjacent stockworks.
In its initial phase, Golden Vertex rolled out a pilot plan, extracting a limited amount of rock to see if a heap leaching process would be successful.
Heap leaching is an industrial mining process that uses cyanide to extract gold from ore.
The phase two open pit mine, near construction completion, was designed to have a five-year life at a projected mining rate of 5,000 tons per day.
A preliminary economic assessment released by the company in December included concurrent third phase plans to expand the mine facilities onto federal public lands, requiring Bureau of Land Management to approve a new mine plan of operations and amendments to several permits. As part of its strategic goals for 2018, the company has set target production at 150,000 ounces per year.
At full operation, the mine is expected to employ as many as 100 people.