Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Northern Vertex Mining (TSXV: NEE), which primarily operates the Moss gold mine in Arizona, achieved a record production of 14,673 gold equivalent ounces for the first quarter of its fiscal year.
This marks the sixth consecutive monthly gold production record for the company and an increase of approximately 29% over the previous quarter. Single-day output records were also set during the period at 195 ounces of gold and 1,500 ounces of silver per day.
Northern Vertex posted revenues of $27 million for the quarter ended September 30, also a record high. By quarter-end, it had $12.1 million in cash on hand.
The Moss mine is a low-cost, open-pit gold-silver operation located in northwest Arizona, approximately about an hour south of Las Vegas, Nevada. It contains an estimated 20.56 million tonnes of measured and indicated resources at 0.54 g/t Au for 360,000 ounces of contained gold.
Northern Vertex acquired the Moss property in 2011 and declared commercial production seven years later after completing a pilot plant test facility and a feasibility study.
The company is currently focused on completing a 60,000-foot exploration campaign that is expected to both unlock the high-grade Ruth vein and add “significant ounces” that can be exploited from its mining operations.
It is also running a 45,000-tonne bulk sample to assess the opportunity to dramatically expand throughput and drive down operating costs.
Shares of Northern Vertex Mining jumped 5.1% by 2 p.m. EDT Wednesday, giving the Vancouver-based gold producer a market value of C$155.9 million.
