This is a press release issued by the company developing the Moss Mine for mining activity outside Bullhead City:
February 2, 2017, Vancouver, B.C. – Northern Vertex Mining Corp. (TSX.V:NEE) (the “Company” or “Northern Vertex”) is pleased to provide an update on mine procurement, construction, permitting and exploration activities at the company’s 100 % owned Moss Mine gold-silver project, located in the historic Oatman Mining district in NW Arizona. The Moss Mine project, which is scheduled to commence commercial gold-silver production in Q4 2017, has a capital cost estimated at US$33m, and is expected to generate an average annual production of 42,000 oz gold Eqv. with an all-in sustaining costs of US$662/oz gold and an after-tax IRR of 48% (based on $1,250/oz gold and $20/oz silver).
Moss Mine Development Highlights:
- Key Federal and State Permits for Phase II are in hand. The final amendment to the Aquifer Protection Permit is expected in March 2017, the closure costs calculation has been approved and the $1.4m bond submitted.
- The ramp-up of site construction is continuing with bulk earthworks initiated during Q1 2017, with the earthworks contractor having mobilized to the site and, the purchase of the main crushing plant scheduled for delivery and installation by Q2 2017.
- Detailed engineering and mine planning for Phase II nearing completion and is advancing to a planned 95% completion by Q2 2017
- Procurement progress is tracking well, with all major items.
- Completion of two new groundwater production wells that will supply make-up water for leaching of Moss ores.
- Nearing completion of the site perimeter fencing around the patented claims.
- Engaging services of Mine Development Associates (“MDA”), of Reno, NV to initiate mine design for the Phase III Mine Plan of Operations (MPO) and Permitting.
- Continued advancement of local community initiatives, human resources initiative underway to enhance access to local labor pool and skilled work force.
Kenneth Berry, President and CEO, stated: “We are pleased to provide an update on procurement and construction activities at the Moss Mine project that are progressing on schedule and on budget for our Phase II operations. Moss is one of the few gold-silver deposits in the United States with advanced permits, situated in one of the most historic and active gold regions in Arizona. The improved investment environment for precious metal companies and the low capital costs required to place Moss into production has greatly enhanced the Company’s ability to expediate the advancement of the project to the construction and development phase. Simultaneously, we are beginning the engineering and design work to enable permitting of Phase III well in advance of when they will be required. We look forward to providing further updates on activities in the future.”
Construction and Civil Earthworks
N.A. Degerstrom continues with the site civil works. The Moss Mine entrance/parking area is 90% complete and requires final site grading. The power station pad is 80% complete also requiring final site grading. The historic mine openings (Old shafts, stopes, adits and tailings) and associated hazards have been reclaimed, making safe the laydown yard where development is now 70% complete. The proposed future crusher pad area is well underway, and NAD have also begun pioneering the east access road over to the proposed Merrill Crowe area.
Mine Engineering Design & Major Item Procurement
- Crusher – M3 Engineering is coordinating completion of shop drawings for the crushing plant.
- Merrill Crowe – detailed engineering continues and efforts are now focused on the civil and structural designs.
- Power Station – proposals for the diesel generators and transformers are being reviewed.
- Heap Leach civil works – Golder Associates (“Golder”) have completed the Heap Leach Pad & Ancillary Structures design & M3 has prepared contract documents for proposed construction.
Summary of Permitting – Phase II
|√||BLM Surface Disturbance on Federal Land||No Disturbance of Federal Lands on Phase II|
|√||Mine Safety & Health Administration (MSHA)||Mine ID # 0202367 April 3, 2013|
|√||U. S. Army Corps of Engineers||Phase II erosional features declared non jurisdictional Aug 26, 2016|
|√||EPA – NESHAP||Granted Jan 31, 2017|
|State of Arizona|
|√||Mine Reclamation Permit||Amendment approved – Nov 21, 2016, Bonding in place Approved Dec 13, 2016|
|√||Stormwater Multi-Sector General Permit MSGP||Approved Dec 13, 2016|
|√||Air Quality Permit||Facilities Construction permit granted Dec. 16, 2016|
|√||Stormwater Pollution Prevention Plan SWPPP||Revision II approved Dec 22, 2016|
|√||Aquifer Protection Permit – Amendment||Closure Plan Accepted, Bond in place, public hearing in February, expected award in March|
Well Drilling and Aquifer Pump Tests
Yellow Jacket Drilling completed two deep, large diameter groundwater production wells (#16 and well #17) in mid January. Constant rate pumping tests have been completed on these wells and crew has moved to previously completed wells to complete aquifer testing in advance of a final aquifer analysis report by Golder.
Exploration and Resource Expansion Program – seven drill holes complete, assays pending
Northern Vertex is currently conducting a 3,000 meter drill campaign, simultaneously with the Company’s ongoing Moss Mine construction and development program. It is the first phase of a multi-phase drill and resource expansion program designed to further expand the Company’s existing gold-silver resources.
The Company has identified four high priority targets that are the focus of the multi-phase drill program on Moss. These include the West Oatman stockwork vein target, the high-grade Old Timer East and West targets and the Western Extension of the main Moss Mine deposit. The Company recently completed 3 drill holes on the Western Extension of the Moss deposit, where extensive silicification and quartz veining has been mapped along the western projection of the Moss vein system. The Company is currently drilling on the West Oatman target and has completed an additional four holes. Assays from recent drilling will be announced in a future release once received and compiled.
Mineralized intersections in Drill holes WW-16 and WW-17, which comprised nine inch diameter holes drilled as water wells, intercepted gold and silver mineralization 130 feet below the established Moss Mine gold-silver open-pit resource. The intercept in WW-16 calculates as 1.178 g/t gold plus 24.152 g/t silver (1.58 g/t gold Eqv.*) over 115 ft. (645-760 ft.), which converts to a true width of 39.3 ft. (12.0 meters) at 70 degree dip of the Moss vein. The mineralization was in the hanging wall slightly above the main Moss vein. (see news release dated January 30, 2017)
The reverse circulation water well hole 16 that intercepted the Moss gold-silver structure at depth is a significant development that demonstrates the Moss gold-silver mineralization extends below depths previously recognized. The multi-phase core drilling program is intended to demonstrate the potential for discovery of new zones of gold and silver, which would assist the Company in meeting its goal of increasing its gold-silver resources and potential future production without incurring significant incremental costs.