Northern Vertex Mining Corp. (TSXV:NEE) announced the first results from the ongoing 3km step-out drill campaign at its wholly owned Moss gold-silver
project in Arizona. Today’s results include two holes and of note, hole WW-16 intersected gold and silver mineralization ~40m below the Moss mine’s
current open-pit resource boundaries. Although it is early days, in our view, this intercept highlights there is potential for the resource to grow
at depth. Considering the project’s relatively short life (~5 years at 42k AuEq oz per year), even a small resource addition is likely to have a meaningful
positive impact on the project’s economics. To date, the company has completed seven holes as part of the ongoing program and we expect pending results
should provide positive momentum for the share price. Northern Vertex currently trades at a premium to peers at C$79/oz vs. peers at C$50/oz.
Resource appears to have growth potential at depth. Hole WW-16 intersected 1.18 g/t Au and 24.15 g/t Ag over 12.0m (true width) in the
Moss’ vein’s hanging wall at a 70° dip. At 1.52 g/t AuEq, this grade compares favorably to the Moss’ resource grade of 0.84 g/t AuEq (all categories).
The interval was intersected ~40m below the current open-pit resource boundaries, suggesting the resource has potential to grow at depth. Hole WW-17
returned gold and silver mineralization outside the Moss vein and likely intersected the Canyon fault. We view these results positively as even a small
resource addition is likely to have a meaningful positive impact on the project’s economics given the current mine life of five years.
Project stage supports premium valuation. Northern Vertex currently trades at C$79/oz, which is a premium to peers at C$50/oz. In
our view this premium valuation is supported by the Moss mine’s exploration potential, coupled with the project’s stage as construction is underway
and construction funding is in place. We expect that pending results from the ongoing drill program should support Northern Vertex’ valuation and
provide a positive momentum for the share price.
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
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Northern Vertex Mining Corp. - TSXV:NEE - 1,2,4
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