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Tuesday, August 15, 2017 Derek Macpherson

NEE’s Construction Activities Continue at Moss

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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

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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

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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

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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


Tuesday, April 18, 2017 Derek Macpherson

NEE Identifies Sufficient Water for Operations

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Northern Vertex Mining Corp’s (TSXV:NEE) updated water report concludes that existing groundwater resources on the patented claims are sufficient to support expected mining operations at its Moss gold-silver mine in Arizona. The updated report estimates current groundwater resources to yield between 180 and 240 gpm, with an additional 120 to 160 gpm by way of pit dewatering from mining operations. Water demand at Moss will range between 170 gpm (winter) and 240 gpm (peak months, June and July), an average of 210 gpm, falling within the estimated capacity. Subsequently, a water distribution system is being designed to connect the groundwater wells. While identifying sufficient water for planned operations is critical; we believe this was already priced into the Northern Vertex’s share price. Northern Vertex trades at C$103/oz a premium to peers (C$55/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


Friday, March 24, 2017 Derek Macpherson

NEE Adds C$5M from Warrant Incentive Program

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Northern Vertex Mining Corp. (TSXV:NEE) announced it has completed the warrant exercise incentive program announced on February 17, 2017. The purpose of the program was to provide funding for the ongoing development plans and construction of the Moss gold-silver mine in Arizona. Gross proceeds of C$5,000,054 were raised through the exercise of 10,713,608 outstanding unlisted warrants. For holders who exercised their warrants under the program, the company issued 5,356,804 common share purchase warrants, whereby each incentive warrant entitles the holder to purchase an additional common share of the company at a price of C$1.00 per common share until March 24, 2021. At C$103/oz, Northern Vertex currently trades at a premium to peers (C$55/oz). In our view, this premium valuation is 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 from the Phase III engineering work or the ongoing exploration program. read more


Sunday, February 26, 2017 Derek Macpherson

RCKS Pre-PDAC Mining Showcase Presenter Preview

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On Friday March 3th, 2017, Red Cloud Klondike Strike Inc. will be hosting its 5th Annual Pre-PDAC Mining Showcase. The event features presentations from 21 companies, including a themed lunch presentation by leading corporations in the gold mining sector. Visit the event page for more details on the day’s schedule. In this post, we provide a brief preview on the 21 presenting companies and 13 banner sponsors that will also be in attendance.  read more


Thursday, February 23, 2017 Derek Macpherson

NEE Optimization Plan Should Improve Moss' Economics

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Northern Vertex Mining Corp. (TSXV:NEE) provided an update on its optimization plan which should improve both the mine’s economics, both for the five-year mine-life (Phase II) and the longer-term (Phase III). A key piece of the plan is to move the mine from diesel power, as envisioned in the feasibility study, to grid power. We expect a nominal increase in initial capital; however, the planned savings of US$16 million over the first five years should materially improve the project´s currently robust after-tax IRR of 48%. As well, the company plans infrastructure improvements (upgrade to Silver Creek Road) and is examining the sale of its waste rock as aggregate which may be a source of additional revenue. Although the power line construction and road upgrades require additional permits, the Moss mine remains on schedule to commence commercial production in Q4 2017. With the project remaining on schedule, we view these optimization initiatives positively, allowing NEE to further reduce costs and improve project economics. At C$99/oz, Northern Vertex currently trades at a premium to peers (C$54/oz). In our view, this premium valuation is warranted 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 potential from the ongoing Phase III engineering work or the ongoing exploration program. read more


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