Northern Vertex Mining Corp. (CVE:NEE) says it has rectified the resource modeling errors previously reported at its Moss gold-silver project in Arizona, with a revised NI 43-101 compliant resource estimate released today.
The company last month retracted its prior resource estimate released last September on account of an error caused by the modeling methodology used.
Shares of Northern Vertex immediately resumed trading after the release of the new estimate, as its stock was halted Friday afternoon pending news. The junior explorer's stock was flat, trading at 90 cents after the news Tuesday.
The new, updated estimate - prepared by Metal Mining Consultants, formerly Scott E. Wilson Consulting, the same authors that inked the September report - shows 22.6 million tonnes of measured and indicated resources, with an average grade of 0.9 grams per tonne (g/t) gold equivalent, for around 653,600 gold equivalent ounces in both categories.
This compares with the September 2012 estimate, which showed 956,800 gold equivalent ounces in the measured and indicated categories, comprised in over 30.8 million tonnes.
In addition, the latest report shows an additional 3.96 million tonnes of inferred resources, with an average grade of 0.64 g/t gold equivalent, for 82,020 ounces.
"We have rectified the resource modeling errors previously reported. We are confident in the integrity of the data going forward," said president and CEO, Dick Whittington, in a statement today.
"Our new, updated, resource model is robust and incorporates all previous as well as new drilling results which post-date the September 2012 technical report and resource estimate," he continued, adding that the release of the preliminary economic assessment for phase I and II of the project is still on track for this month.
The latest resource report, which was also verified by CDM Smith, incorporates new technical information since the mistaken estimate last September, including drill hole information from 328 additional holes.
Drilling density was also increased to around 15-30 metres in most parts of the deposit, resulting in increased confidence in the geology required to move inferred mineral resources to the measured and indicated categories.
The updated estimate, which is effective as of March 5, will be included into a new NI 43-101 technical report, which will also have a preliminary economics report for the project, and which will be filed on SEDAR shortly.
The company said Tuesday that the new resource estimate has allowed for a "better geological interpretation" of the Moss project.
Northern Vertex is planning to put the Moss project into commercial production by early 2014, with a three phase mine development plan designed to move the project forward from conceptual design and test work to on-site pilot plant testing and then commercial operations.
The phased approach is expected to minimize initial capex and ensure technical and economic objectives are met for subsequent phases prior to proceeding with the plan.
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