Northern Vertex Mining Corp. (NEE:TSX.V; NHVCF:OTC
Post# of 9
Northern Vertex Mining Corp. (NEE:TSX.V; NHVCF:OTCQX), which is focused on the Moss gold-silver property located outside of Bullhead City, Ariz. The company is looking to commence production first under a 90,000 ton heap-leach pilot plant that, once it proves metallurgical lab studies of around 75-80% recovery, it will look to expand to a 5,000 tpd operation, where it can target more than 40 Koz gold equivalent per year.
TGR: Northern Vertex bills itself as a near-term production story. Is that fairly accurate?
PK: Yes. for a junior that not many people know about, it's well funded with more than $8M in working capital. This is more than enough to meet costs of $3.5M for the pilot plant. Phase two has a low capital expenditure of only $26M, which is based upon the 5,000 tpd scenario and could even be in construction later this year. This project has an incredible IRR of 117% with a rapid payback of 15 months and is a perfect candidate to begin attracting attention of major institutions. Moss has the qualities to become a real company maker for Northern Vertex.
TGR: Have you visited the Moss property in Arizona?
PK: I've actually been there twice. The company has a new chief executive officer, Mr. Dick Whittington, who was CEO of Farallon Mining Ltd. He sold that company to Nyrstar N.V. (NYR:BSE) for $409M. His track record is quite strong and I am confident he and his team may be able to do it again.
TGR: What were some of your takeaways from your firsthand experience?
PK: The project is located in a remote historic mining district in northwestern Arizona. It's got gravel roads right to the site. The property is on patented land with no significant permitting hurdles to overcome. The area has about 9% unemployment and the local officials are very supportive of mining, Northern Vertex and the potential job creation for the surrounding communities.
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