RCKS talk

Tuesday, October 17, 2017 Derek Macpherson

NEE Plans for Exploration with Strengthened Team

Download Report  

Northern Vertex Mining Corp (TSXV:NEE) announced it has an agreement with La Cuesta International Inc. to design a ~$10 million exploration program. Founders, Frank (Bud) Hillemeyer and Perry Dunning have been appointed as Exploration Advisors for the Oatman District, further strengthening the company’s team. The agreement provides the company access to the La Cuesta Proprietary Resource Data Bank of the Oatman District which hosts data going back to the 1970’s. Northern Vertex trades at C$138/oz a premium to peers (C$48/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Wednesday, October 11, 2017 Derek Macpherson

NEE PEA Expands Moss Mine; Improves Project Economics

Download Report  

Northern Vertex Mining Corp. (TSXV:NEE) reported results from a PEA completed for its Moss mine outlining an alternative mine plan which includes existing resources currently excluded from the mine plan. The previous feasibility study (FS) completed in 2015 is based on a mine plan constrained by the company’s patented claims, not by resources, whereas the PEA removes this restriction, materially improving project economics. The key step for the company to realize this value is acquiring permits for the surrounding land, a process which is likely to start once the powerline and road upgrade permitting process is complete. While this upside potential is important, we believe that ongoing construction updates and first production are likely to be the key near-term catalysts for the stock.  read more


Friday, October 06, 2017 Derek Macpherson

Site Visit: NEE Progressing Towards First Gold Pour

Download Report

Recently we had the opportunity to visit Northern Vertex Mining Corp.’s (TSXV:NEE) Moss mine which is progressing towards its first gold pour. The construction period can be a challenging time for any company and a risky period for investors, as the company works to take the major de-risking step of transitioning from a developer to a producer. Our site visit highlights that Northern Vertex is well down the path to production, with all major components showing meaningful progress. Based on what we saw on-site, we expect Northern Vertex to pour gold before year-end. We highlight that Northern Vertex is very well funded with both debt (Sprott loan, CAT finance facility) and recent equity investments resulting in low completion risk (i.e. running out of capital before construction). Northern Vertex’s current valuation does not appear to reflect likely reserve growth, currently excluded from the mine plan. We expect ongoing construction updates and first production to be key catalyst for the stock. read more


Friday, September 15, 2017 Derek Macpherson

NEE Advances Moss; Site Visit Next Week

Download Report  

Northern Vertex Mining Corp (TSXV:NEE) provided an update regarding construction activities underway at its Moss Mine in Arizona. Concrete work and liner installation is progressing, final grading is being completed for the initial leach pad cell for first ore stacking in early October, the pilot plant is decommissioned and the area is regraded for production, permitting process for the powerline continues as well, crushing plant deliveries are almost complete with assembly having already commenced. The company noted, it is working on a PEA to extend the current mine-life by accessing neighbouring un-patented lands, which would also include expansion of mine facilities. Northern Vertex trades at C$103/oz a premium to peers (C$44/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. Derek Macpherson will be visiting the Moss Mine next week. read more


Tuesday, August 15, 2017 Derek Macpherson

NEE’s Construction Activities Continue at Moss

Download Report  

Northern Vertex Mining Corp (TSXV:NEE) provided an update regarding construction activities currently underway at its Moss Mine in Arizona, which continues to be on track for commercial production in Q4 2017. Construction continues at Moss with concrete work, liner installation, the decommissioning of the pilot plant heap and ponds and the delivery of crusher plant components still underway. As well structural, mechanical and piping (SMP) will begin in two weeks and electrical and instrumentation (E&IC) will begin in mid-September. In addition, optimization remains a focus for the company to obtain the Right of Way (ROW) permits for power delivery and road improvements. The company is also working on a report to review possible mine-life extension for Moss. Northern Vertex trades at C$70/oz a premium to peers (C$38/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, July 18, 2017 Derek Macpherson

NEE Advances Construction at Moss

Download Report

Northern Vertex Mining Corp (TSXV:NEE) provided an update regarding construction activities underway at its Moss Mine in Arizona. Most notably, the delivery of the crushing plant is ahead of schedule, with final delivery expected at the end of August. The company has also received the majority of permits needed to build and operate a power supply line to the Moss Mine, which will remove the need for diesel generators. Other activities include concrete work and liner installation as well as the decommissioning of the pilot plant heap and ponds, which will be replaced. Based on the advances made to date, the company remains on schedule for production in Q4 2017. Northern Vertex trades at C$138/oz a premium to peers (C$58/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Monday, May 15, 2017 Derek Macpherson

NEE Advances Infrastructure at Moss

Download Report  

Northern Vertex Mining Corp (TSXV:NEE) provided an update on optimization activities from its Moss gold-silver project in Arizona. Permitting and design work is underway for the construction of a powerline which will replace diesel generators at the mine, a cleaner and more economic source of energy. In addition, the company signed a 5-year agreement with Tri-R Construction Inc. to sell waste rock aggregate, which also includes improving and maintaining roadways. The new advancements support the efforts to improve economics, as this permitted project moves towards production. Northern Vertex trades at C$101/oz a premium to peers (C$52/oz). We view the premium valuation as reasonable given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, May 02, 2017 Derek Macpherson

NEE Signs Equipment Financing Facility for US$9 million

Download Report

Northern Vertex Mining Corp (TSXV:NEE) has executed a commitment letter and term sheet with Caterpillar Financial Services Corporation to secure an equipment financing facility between 70-80% of the cost of the equipment for a maximum of US$9 million. Under the terms and conditions, the company also has the option to purchase the equipment at the end of the four-year lease period. Northern Vertex has actively raised capital to fund the initial capital costs of US$33.0 million required to develop the Moss gold-silver project. To date, the company has completed a C$7.35 million convertible debenture financing, received C$5 million in proceeds from a warrant incentive program and signed a credit agreement with Sprott Lending for US$20 million. Including the equipment financing, the company appears to be positioned to achieve its goal to produce gold by Q4 2017. Northern Vertex trades at C$110/oz a premium to peers (C$54/oz). We view the premium valuation as reasonable given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


SUBSCRIBE TO HEAR FROM US

Gain access to exclusive mining industry research reports as well as additional mining industry information, promotional materials, press releases and news.

RCKS Talk Daily Analysis
RCKS News
LATEST POST
CATEGORIES
RELATED TAGS
ARCHIVES

 

RISK WARNING:

Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.

 

By accessing this website you agree to be bound by our Terms of Use and Privacy Policy.

 

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.

© Copyright 2017 Red Cloud Klondike Strike Inc. All rights reserved.