VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 28, 2014) - Northern Vertex Mining Corp. (the "Company") (TSX VENTURE:NEE)(OTCQX:NHVCF) announces that the Company's audited consolidated financial results for the year-ended June 30, 2014 have been filed on SEDAR. The full version of the Financial Statements and Management's Discussion & Analysis can be viewed on the Company's website at www.northernvertex.com or on SEDAR at www.sedar.com.
Financial and Corporate Highlights for the Quarter and Year Ended June 30, 2014
Dick Whittington, President & CEO, states, "Fiscal 2014 has been an eventful year for the Company. The highlight has been the outstanding recoveries achieved from the Company's Phase I - Pilot Plant Operations, which significantly exceeded the assumptions of the PEA. With this milestone behind us, we can now focus on completion of the Feasibility Study and planning for the second phase of our three-phase business plan, establishing an operating mine at the Moss Mine project site.
Furthermore, I'd like to commend Mr. Joe Bardswich, our General Manager, and Mr. Dave Kinsey, our Safety Manager, for their exemplary safety record during the year".
Gold and Silver Sales Proceeds
Monies received from the Pilot Plant, to date, have totalled US$5.2 million from 3,851 ounces of gold at an average selling price of US$1,263.08 per ounce and 16,747 ounces of silver at an average selling price of US$20.21 per ounce. Approximately US$225,000 is anticipated in the coming months for total sales proceeds from the Phase I - Pilot Plant of approximately US$5.4 million. Gold and silver sales from the Pilot Plant, as per the PEA budget, were estimated at US$5.3 million, using prices for gold and silver of US$1,500 and US$30 per ounce, respectively. With the decrease in metals prices since the date of the PEA, the increase in sales proceeds that the Company anticipates over the PEA budget can be attributed to the additional tonnage placed on the leach pad and the significantly higher recoveries of gold (82% versus 75%, as per the PEA).
Silver Creek Property
At the beginning of the third quarter of the 2014 fiscal year, in response to increasingly difficult market conditions experienced throughout the mining industry, the Company instigated an aggressive cost reduction program which included headcount reductions of over 40%, including certain senior positions and other general and administrative expenses. All remaining staff, both corporately and at the mine site, experienced salary or wage reductions to the end of fiscal 2014 and senior management and directors agreed to significant financial sacrifices that included salary and consulting fee suspensions. Effective July 1, 2014, the Company implemented significant reductions to senior management compensation and directors' consulting fee arrangements that included a substantial write-off of amounts previously recorded as amounts owing. Cuts of up to 50% for both the Chairman and President & Chief Executive Officer were implemented and remaining senior management and directors experienced significant reductions as well. Furthermore, with the winding down of the leaching operation at site, the Company anticipates the lay-off of the remaining field staff later in the calendar year. These cost reduction measures will continue to have a significant impact on overall costs and ultimately, increased cash preservation.
On July 11, 2014, the Company announced that it had closed the final tranche of its Non-Brokered Private Placement, which was oversubscribed, and raised aggregate gross proceeds of $3,760,525 by issuing an aggregate total of 15,042,098 units at a purchase price of $0.25 per unit. The Company intends to use the net proceeds of the Private Placement for the advancement of the Company's Moss Mine Gold-Silver earn-in property located in Mohave County, Arizona, primarily the completion of a feasibility study and for general corporate purposes.
About Northern Vertex
Northern Vertex Mining Corp. is a Canadian based exploration and mining company focused on the reactivation of the Moss Mine Gold-Silver Project located in NW Arizona, USA where the Company has the right to earn-in to a 70% property interest through a Joint Venture with Patriot Gold Corp. The Moss Mine Gold-Silver Project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 220 meters vertically. It is a potential heap leach, open pit project being advanced under a three-phase business plan, specifically designed to ensure that technical, economic, permitting and funding requirements are met prior to each phase proceeding. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
The foregoing technical information contained in this news release has been approved by Mr. L.J. Bardswich, P. Eng., General Manager Moss Project, and a Qualified Person ("QP") for the purpose of National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: The information in this news release has been prepared as at October 28th, 2014. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise US investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. US investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, the completion of the Private Placement, the proposed use of the proceeds of the Private Placement, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such Statements.
2014 number 15