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Northern Vertex reports production update

Published by
Global Mining Review,


Northern Vertex Mining Corp. has announced record production of 14 673 gold equivalent ounces, record revenue of US$26.8 million and record adjusted EBITDA of US$13.5 million for the quarter ended 30 September 2020 rom the company's 100% owned Moss Gold Mine in North West Arizona, US.

Highlights

  • Record revenue of US$26.8 million.
  • Record adjusted EBITDA of US$13.5 million.
  • Record earnings from mine operations of US$12 million before depreciation and depletion.
  • Record gold equivalent production of 14 673 oz.
  • Record gold production of 13 083 oz
  • Cash cost of US$954/oz, including approximately US$47/oz in one-time costs tied to the change of mining contractor.
  • Moss Mine AISC of US$1317/oz which included US$292/oz in capital expenditures tied to the construction of the powerline, exploration and a heap leach pad expansion.
  • Net loss of US$18.5 million driven by non-cash derivative liabilities.
  • Cash on hand of US$12.1 million.

Ken Berry, CEO of Northern Vertex, stated: "Having financed and built the Moss Mine during a challenging market environment, it is a pleasure to share this quarter's record production and financial metrics as we fully participate in this strong gold market. Our record earnings from mine operations demonstrate the robust economics of the Moss Mine. The net loss this quarter is a result of the non-cash, US$26.3 million mark-to-market accounting effect of our derivative liabilities, due to the strong performance of both our share price and the silver price this quarter. The Northern Vertex team continued to exceed expectations with numerous production records including the completion of key capital projects such as the powerline connection and west pit pioneering. Through an ambitious exploration programme that is underway, we continue to see significant opportunity to expand the resource through the drill-bit, with the rapid advancement of the Phase I, 18 000 m drill programme. With the success we have seen with Phase I exploration results, the Northern Vertex Board recently approved a 30 000 m Phase II drill programme, and Northern Vertex will be providing updates on the near-mine, infill and generative exploration results in the coming months."

Operations

During the 3 months ended 30 September 2020 a total of 706 629 t of ore was mined at a strip ratio of 2.15. The proportion of total ore being sourced from the east mine continues to increase as operations transition out of the centre mine, while pioneering in the west pit is nearly completed.

In addition, a new processing record was established of 683 706 t crushed at an average gold grade of 0.69 g/t. In addition, a record total of 13 083 gold oz and 119 257 silver oz were produced.

Finally, the Moss team advanced numerous important capital projects during the quarter, including:

  • Construction of a 6.9 mile power line, resulting in the mine being switched over to grid power from generator power with power costs moving from 31 cents per KWh to 8 cents per KWh.
  • Construction and commissioned an Intermediate Leach System, which accelerates gold recoveries from the heap leach pad.
  • 80% complete test work on increasing grind size, which could increase throughput rates and/or reduce costs.
  • Pioneering the new west mine, which was more than 80% complete at 30 September 2020.
  • Completed 35 000 ft of infill and exploration drilling, which is expected to lead to a resource update and revised mine plan.

Read the article online at: https://www.globalminingreview.com/exploration-development/27112020/northern-vertex-reports-production-update/

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