|Vancouver, B.C. - Northern Vertex Capital Inc. (TSX.V:NEE) ("Northern Vertex") reports that it has received conditional approval from the TSX Venture Exchange regarding the previously announced joint venture agreement (see news release dated September 26, 2011) to acquire up to a 75.5% interest in the Lemhi Gold Project (the "Lemhi Property") located 25 miles north of Salmon, Idaho (the "Joint Venture"). The transaction is subject to approval by the TSX Venture Exchange ("TSX-V"). Northern Vertex is responding to additional information requested by the TSX-V and will remain halted until final approval is received. Additionally the previously announced financing (see news release dated October 18, 2011) has been conditionally approved by the TSX-V pending the approval of the aforementioned Joint Venture agreement.|
The Lemhi Project was recently assembled from four underlying property holders to form a newly consolidated advanced exploration opportunity. The Lemhi Gold Project includes Yamana's interest in the Humbug Gold Deposit and has a historical non-compliant 43-101 resource of 32.36 million short tons at a grade of 0.0375 ounces per short ton for 1.21 million contained ounces of gold, as reported by Pincock Allen & Holt in 1996 (the "PAH Report"). The PAH Report calculated a non-compliant 43-101 Geological Resource on the Humbug based on 277 reverse circulation holes totaling 157,000 feet with a cut off grade of 0.0112 opt. In 1996 Kappes, Cassiday & Associates conducted a non-compliant Pre- Feasibility Study on the Humbug deposit based on 15,675,000 tons of ore, and an approximate 6-year mine life. Northern Vertex cautions that a qualified person has not done sufficient work to classify the historical estimate, or has substantiated any data as it pertains to a pre-feasibility study, as current mineral resources or mineral reserves, therefore, it should not be relied upon on as actual resource or reserve estimates, and should be construed only as conceptual in nature. The Company is treating the historical estimate only a guideline to determining potential future mineral resources or mineral reserves.
Upon completing its initial funding commitment to the Joint Venture totaling US$7.65 million, Northern Vertex will have a 51% interest in the Joint Venture and has the option to increase its joint venture interest to 75.5%. Based on the PAH Report of 1.21 million historical resource ounces at the Lemhi Project and Northern Vertex's pro rata acquisition cost of US$4,845,000, Northern Vertex is acquiring its initial 51% interest in the Lemhi Property at less than $8 per historical resource ounce of gold.
The Terms of the Joint Venture and Acquisition
Northern Vertex and Idaho State Gold Company, LLC ("ISGC", a private Idaho investment company) entered into joint venture agreements dated as of September 21, 2011 (the "JV Agreement") and formed the joint venture entity named Lemhi Gold Trust, LLC ("JV LLC"). JV LLC has consolidated and acquired the Lemhi Property from four underlying vendors for a total acquisition cost of US$9.5 million (the "Acquisition"), of which:
Furthermore Northern Vertex retains the option to increase its Joint Venture Interest to 75.5%.
The Acquisition is also subject to further third party rights (see news release dated September 26, 2011)
Non-Compliant 43-101 Historical Resources and Reserves
This historical resource estimate is mentioned for illustrative purposes only and is not compliant with National Instrument 43-101 ("NI 43-101"). The reliability of historical estimates is unknown but considered relevant by Northern Vertex. These are historical resource estimates prepare prior to the implementation of NI 43-101 and use terminology not compliant with current reporting standards. Northern Vertex has not made any attempt to re-classify the estimates according to current NI 43-101 standards of disclosure or the CIM definitions. Northern Vertex is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101. These historical estimates should not be relied upon. Pincock Allen & Holt. Geological and Resource Model of the Humbug Deposit dated February 8, 1996.
Northern Vertex is a gold exploration and development company operating principally in the United States and Canada. The Company comprises an experienced management group with a strong background in all aspects of acquisition, exploration, development and financing of precious metal mining projects. The Company's stated mandate is to acquire, develop and advance asset-based gold projects that demonstrate ne ar term production potential and long-term sustainable growth.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
For further information, please visit www.northernvertex.com
or contact Colin Clancy at Telephone: 604-601-3656
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
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 U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. 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, 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.