Northern Vertex Reports Revenue of US$23.4 MillionNorthern Vertex Reports Revenue of US$23.4 Million and Production of 12,401 Gold Equivalent Ounces for Quarter Ending December 31, 2020 Northern Vertex Reports Revenue of US$23.4 Million and Production of 12,401 Gold Equivalent Ounces for Quarter Ending December 31, 2020
Canada NewsWire
VANCOUVER, BC, Jan. 18 , 2021
VANCOUVER, BC, Jan. 18 , 2021 /CNW/ -
Northern Vertex Mining Corp. (TSXV: NEE) (OTC Nasdaq Intl.: NHVCF)
(the "Company" or "Northern Vertex") is pleased to announce revenue of $23.4 million and production of 12,401 gold equivalent ounces for the quarter ended December 31, 2020 from the Company's 100% owned Moss Gold Mine in NW Arizona. Gold equivalent production is calculated at realized gold and silver prices for the quarter of $1,888 and $24.66 respectively. All figures are US dollars unless otherwise noted.
Highlights for the quarter ending December 31, 2020: - Revenue of $23.4 million
- Gold equivalent production of 12,401 ounces
- Gold production 11,124 ounces
- Silver production of 95,804 ounces
- Repayment of $8.5 million of debt
- $8.3 million cash on hand at December 31st, 2020
Ken Berry, President and CEO commented, "I am delighted to report continued robust production in a strong gold market. In the last six months, we have generated $50.2 million in revenue on the production of 27.1 gold equivalent ounces. The exemplary performance of our operating team this quarter allowed us to maintain strong production and revenue levels while executing the transition from mining the center pit to pioneering and operating the west pit. With a strong balance sheet, an aggressive exploration program and 3 drill rigs onsite, I look forward to updating our shareholders with our upcoming drill results."
Operating Re sults for the Quarter Ended December 31, 2020: | | | | Three Months Ended
Dec 31, 2020 | Three Months Ended
Dec 31, 2019 |
| Ore mined | tonnes | | 570,742 | 521,818 |
| Grade | g/t | | 0.53 | 0.75 |
| Tonnes stacked per day (average) | tpd | | 6,810 | 5,399 |
| Contained gold ounces stacked | Oz | | 11,073 | 12,043 |
| Gold ounces sold | Oz | | 11,760 | 9,925 |
| Silver ounces sold | Oz | | 147,109 | 61,183 |
| Gold equivalent ounces sold* | Oz | | 13,721 | 10,740 |
| *Note: Gold equivalent ratio of 75:1. |
Mine Plan Sequencing from center pit to west pit During the quarter, minin g operations transitioned from the centre pit into the west pit, where bulk disseminated stockworks dominate. This transition enabled higher tonnage mining rates and more favourable strip ratios that are expected to lead to lower costs and lower cut-off grades as compared to the narrow-vein mining previously conducted in the centre-pit.
Cash Position The Company's cash position of $8.3 million at December 31, 2020 is expected to be augmented by the C$22.6 million financing announced by Northern Vertex and Eclipse Gold in connection with the merger of Northern Vertex and Eclipse Gold (see press release dated January 14, 2021). Subject to the satisfaction of certain conditions, the merger between Northern Vertex and Eclipse Gold is expected to close on February 12, 2021.
Debenture Payment The Company also announces that under the terms of the convertible debentures issued under the convertible debenture indenture dated July 31, 2020 (the "Indenture") between the Company and Computershare Trust Company of Canada, it has elected to satisfy its obligation to pay an aggregate of C$140,250 in interest accrued on the C$6.71 million convertible debentures by issuing to such debenture holders on the interest payment date of December 31, 2020 an aggregate of 269,712 common shares.
The Company will pay to each such debenture holder approximately 4.02 common shares per $100 principal amount of debentures held as at the applicable interest payment record date. Under the terms of the Indenture, no fractional common shares will be delivered upon payment of the interest obligation and the C ompany is not required to pay the cash equivalent of any amount less than $5.00. The issuance of common shares in payment of interest remains subject to Exchange approval.
Safety/COVID-19 The Company's policies have been recently modified
, with new procedures put in place during the second fiscal quarter due to an onset of a number of COVID-19 cases among our team members. Despite health concerns, our team was able overcome localized challenges and maintain full gold production at the Moss Mine. As at December 31, 2020, we have seen the benefits of our upgraded procedures and the Moss Mine had no known cases of COVID-19.
About Northern Vertex Mining Corp. Northern Vertex Mining Corp. owns and operates the Moss Mine, currently the largest primary gold and silver mine in Arizona. Focused on low cost gold and silver production, the Company has experience across all areas of operations, mine development, exploration, acquisitions, and financing of mining projects. The Company intends to consolidate additional producing or value-adding gold assets within the Western US. Through mergers and acquisitions Northern Vertex's corporate goal is to become a mid-tier gold producer.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX "Kenneth Berry"
President & CEO