In the last nine months alone, Northern Vertex (CVE:NEE) has managed to acquire two advanced mineral projects with historic reserves and initiate drill campaigns, setting the company on path for a productive year.
The Canadian exploration and mining company's strategy is to acquire,
develop and advance precious metal projects in Canada and the US,
targeting the conversion of historical resource estimates to NI 43-101
In March of last year, Northern Vertex acquired the rights to 70
percent of the Moss gold-silver project in Mohave County, northwestern
Arizona, where the company has since completed a 27,000 foot drill
program, resulting in the delineation of a substantial NI 43-101
compliant gold-silver resource.
CEO Ken Berry says the company drilled off a current resource of
590,000 ounces of gold equivalent, 90 percent of which is in the
measured and indicated category.
Northern Vertex is now finishing up the 20,000 foot phase 2 infill
and resource expansion program at Moss, which is designed to test the
western extension of the Moss stockwork gold-silver vein system.
Berry says the program expanded almost 1,000 feet from the current
main structure, which runs almost 5,000 feet on surface. The drilling
campaign is designed to upgrade inferred resources into the measured and
indicated category, and to add more tonnage.
Results from the program are rolling out now, with more assays expected over the next five weeks.
Early last week, the company unveiled core hole results that included
6.26 grams per tonne (g/t) gold equivalent over 1.68 metres, 5.37 g/t
gold equivalent over 1.83 metres, 4.03 g/t equivalent over 1.22 metres
and 3.61 g/t gold equivalent over 4.57 metres.
The company said these results confirm the gold mineralization along
Moss's western extension is "expanding and robust", and that high grade
zones are contained within larger mineralized intersections, which are
above internal cut-off grades.
Last month, the company also reported notable results from the first
four diamond holes of the phase 2 program, which included 45.02 metres
of 0.45 grams per tonne (g/t) of gold equivalent in hole AR-139C, and 89
metres of 0.83 g/t gold equivalent in hole AR-142C.
A resource update is expected to follow the release of the remaining results, Berry says.
In addition to the Moss project, the company also acquired last year
the Lemhi gold-silver project in Idaho, which represents a "milestone"
purchase, it said.
Berry says Northern's plan is to "mirror the success of the similar
Moss 30,000 foot program" to begin validating the 1.2 million ounce
non-compliant, historical gold resource.
Just last month, the gold explorer started to drill at the site, with
a budget of $7.8 million set aside from exploration. Results of the
30,000 foot program are anticipated over the next four or five months,
with an NI 43-101 compliant resource expected shortly after.
Berry says there is an opportunity to expand the drill campaign
depending on the results, with the ability to add a second rig to the
"We see the Moss and Lemhi projects as advanced-stage, near-term
production scenarios, providing an opportunity to add value to
shareholders in a very short period of time," stresses Berry.
The company also has the earlier stage Copley project to its name,
which is located in the Nechako region of central British Columbia. Last
month, the company unveiled drill results from its 1,200 metre program
at the site, with highlights from the Smoking Pipe target including 1.5
grams per tonne (g/t) of gold over 10 metres in hole C6-01, and 9.3 g/t
gold over 2 metres.
Northern Vertex said these results indicate that the 10 metre
intersection grading 1.5 g/t gold in hole C6-01 is a lateral extension
of the 33 metre intersection encountered during the 2011 phase 1 drill
The 2011 hole returned 0.271 g/t gold, including 5.6 metres averaging
0.68 g/t gold and 1.4 metres averaging 1.57 g/t gold. Dimensions of
this zone are, at minimum, 150 metres by 100 metres, remaining open to
the south, west and north, the company said.
A prior sampling program on the 2,926 hectare Copley property traced
areas of gold mineralization on surface, including one measuring 55 by
140 metres. Eleven sample sites returned values greater than 1 g/t gold,
including one at 14 g/t gold.
Berry says drilling at Copley has resulted in "lots of mineralization
over wide intersections", and that the company will continue to
evaluate drilling completed last year to look for additional targets,
with more work anticipated in 2012.
"Within nine months, we have acquired two advanced projects with
historic reserves and went on to initiate drill campaigns to confirm and
add value to resources."
With $17 million of cash in the bank, and a "strong management team",
the company is well poised to build out its properties, while at the
same time looking for additional assets to acquire, says Berry, who is
also the chairman of Kootenay Silver (CVE:KTN).
Chief geologist for Northern Vertex Bob Thompson has more than 35
years experience as a field geologist, while director David Farrell was
previously the managing director of mergers and acquisitions at
Endeavour Financial, where he successfully closed more than $25 billion
worth of M&A transactions for junior resource companies.
Northern Vertex is changing hands at $1.16 on the TSX Venture Exchange, up more than 31 percent in the last year.