"Expected Life of Mine Savings of $15 to $20 Million"
Vancouver, BC /PRNewswire/ - Northern Vertex Mining Corp. (TSX.V: NEE) (OTC Nasdaq Intl.: NHVCF) (the "Company" or "Northern Vertex") is pleased to announce that the Company has commenced construction of a $2.1 million, 6.9 mile electrical transmission system, and has completed a definitive, non-dilutive term loan financing agreement, which will secure the long term low cost power supply to the Moss Mine. System design is complete, long lead time items have been purchased, and construction of the system is expected to be completed in Q3 2020. Northern Vertex is partnering with Mohave Electric Corp. for both the finance and construction of this long-term, sustainable grid power supply. All currency figures in this news release are in US dollars.
Highlights of the Powerline:
- Reduction in electrical costs from a historical $0.31 per kwh to a grid-supplied cost $0.09 per kwh;
- Operational and maintenance savings of ~ $15 to $20 million over the life of mine;
- Reduction in AISC of ~$50 per gold ounce;
- Attractive 15-year financing at a rate of less than 2% per annum.
- Significant environmental benefits by switching from diesel power generators to grid power.
Kenneth Berry, President and CEO, states: "Access to sustainable grid power is a positive milestone for all stakeholders and supports our vision of a multi-year mine-life at our Moss Mine in Northwest Arizona. On March 19, 2020 we announced receipt of our Federal Permit to extend Moss Mine operations from our patented claims onto the surrounding federal lands. This Federal Permit, along with the grid power to be facilitated by Mohave Electric, provides the Company with a clear path to lower costs and the ability to extend the mine life for many years to come. We thank our partners Maverix Metals and Mohave Electric for the commitment they have shown to this project and the community of Mohave County. In addition, we are very proud of our more than 150 strong team of men and women for persistence in achieving two significant milestones during the recent quarter."
COVID- 19 Update
Northern Vertex wishes to provide an update regarding the COVID-19 situation. To date, the Company reports no known or suspected cases of COVID-19 infection at the Moss Mine or its office in Vancouver. As a result, production at the Moss Mine will continue to operate while Northern Vertex follows the recommendations and guidelines of public health authorities at both levels of state and federal government. In conclusion, the Company has implemented several initiatives to deal with potential interruptions and will continue to closely monitor the rapidly changing situation in order to adjust its plans if necessary.
About Northern Vertex Mining Corp.
Northern Vertex Mining Corp. is focused on low cost gold and silver production at its 100% owned Moss Mine in NW Arizona. The Company has experience across all areas of operations, mine development, exploration, acquisitions and financing of mining projects. With operations at the flagship Moss Mine achieving commercial production the Company intends to consolidate additional producing or near-term production gold assets within the Western US. Through mergers and acquisitions Northern Vertex's corporate goal is to become a mid-tier gold producer with over 200,000 ounces of gold production annually.
On Behalf of The Board of Northern Vertex
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.
Cautionary Note Regarding Forward-Looking Statements:
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 scheduled, may, intend, plan, expect, anticipate, believe or other similar words. 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. 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. Readers are cautioned not to place undue reliance o forward-looking statements, which speak only as of the date made. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations. US investors should be aware that mining terminology used for Canadian mineral project reporting purposes differs significantly from US terminology.