Vancouver, BC - Northern Vertex Mining Corp. (the "Company") (TSX.V: NEE, OTCQX: NHVCF) announces that the Company's unaudited interim consolidated financial results for the first quarter fiscal 2015 ended September 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 Ended September 30, 2014
- Total Gold and silver sales (net of royalties and selling costs) to date from the Phase I -- Pilot Plant of $5.612 million;
- Excluding non-cash, unrealized foreign exchange gains or losses, net loss for the quarter was $0.360 million, compared to a net loss of $1.849 million for the comparative period last year. Net gain for the quarter was $1.243 million ($0.017 per share), primarily due to a $1.602 million non-cash, unrealized foreign exchange gain compared to a net loss of $2.202 million ($0.042 per share) for the same period last year;
- Cash and cash equivalents was $3.952 million at September 30, 2014, down $0.101 million since September 30, 2013, mainly due to expenditures at the mine site and offset by cash from financing activities;
- Average realized prices per ounce of gold and silver from year-to-date sales proceeds were US$1,263.08 and US$20.21, respectively;
- Working capital increased to $3.673 million at September 30, 2014, compared to $3.098 million last year; and
- On-going commitment to stringent cost control in response to tough market conditions facing the industry.
Dick Whittington, President & CEO, states, "The Moss Mine project is now significantly de-risked following the many technical successes of the Pilot Plant Phase. Our focus now moves to completion of the Feasibility Study, currently underway, targeted for completion in the second calendar quarter next year. The recently announced updated resource, along with the associated technical analysis, provides us with the foundation to further differentiate ourselves in the market as a development stage project".
- On July 1, 2014, the Company implemented significant reductions to senior management compensation and consulting fee arrangements that included a substantial write-off of amounts previously recorded as amounts owing following temporary salary suspensions. Going forward, 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. Furthermore, with the winding down of the leaching operation at the mine site, the Company anticipates the lay-off of the remaining field staff later in the calendar year. The Company remains committed to stringent cost control and continues to respond and adapt to the tough external environment. These cost reduction measures continue to have a significant impact on overall costs and ultimately, increased cash preservation.
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$300,000 is anticipated before the end of the calendar year, for total sales proceeds from the Pilot Plant Operations Phase of approximately US$5.5 million.
- The heap leach pad operation has transitioned into shut-down mode and the neutralizing of the solutions in the ponds and on the heap has commenced. Small quantities of gold and silver continue to be recovered from the heap solutions and are being adsorbed in the carbon columns. Carbon is being chemically stripped at an off-site facility and gold and silver sales are continuing. Final closure is expected in early December. At that time the Company will place the leach facilities on care and maintenance in advance of a future construction decision relating to commencement of operations.
- Based on the presence of several structures and vein trends across the Moss and adjacent Silver Creek Properties, the Company initiated a rock sampling and geological mapping program on areas away from the Moss Deposit area. The objective of the programme is to identify and prioritize areas for future drilling where new resources may be discovered. Only approximately 5% of the property has been explored to date.
- On September 25, 2014, the Company amended the expiration date of 1,321,500 warrants exercisable at $1.15 from October 4, 2014 to October 4, 2015. In all other respects, the terms of these warrants remain unchanged;
- On July 11, 2014, the Company completed the second tranche of its non-brokered private placement ("Private Placement") for total gross proceeds of $3,760,525 by issuing an aggregate total of 15,042,098 units (each "Unit") at a purchase price of $0.25 per Unit. The initial tranche of the Private Placement closed on July 3, 2014, with an issuance of 11,042,098 Units. Each Unit consists of one common share of the Company and one-half transferable share purchase warrant.
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 370 meters vertically. It is a potential heap leach, open pit project being advanced to the Feasibility Study stage to ensure that technical, economic, permitting and funding requirements are met prior to proceeding with the development of the mine. 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
For further information, please visit www.northernvertex.com
or contact Investor Relations at: 604-601-3656 or 1-855-633-8798
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.
Cautionary Note About Forward Looking Information
This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements including but are not limited to comments regarding the timing and content of upcoming work and analyses. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
Cautionary Note to U.S. Investors:
This news release uses the terms "Measured", "Indicated", and "Inferred" resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. U.S. Investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
2014 number 18