- Vertex Minerals PFS demonstrates life of mine pre-tax of $35.7m at $3,000/oz gold price
- The decision was taken to base the projected figures on the Indicated resource achieved to-date
- Vertex is confident of growing the global resource through more drilling
Special Report: Vertex Minerals believes that development of the Reward mine in NSW with underground exploration drilling will provide the best opportunity to boost the project’s financial outcome.
Vertex Minerals (ASX:VTX) flagship project is the historical Reward gold mine, home to an extremely high-grade resource of 419,000t grading 16.72 g/t – or 225,200oz of contained gold – with a higher confidence indicated resource of 141,000t at 15.54 g/t – or 70,500oz of contained gold.
The company owns 24km of contiguous tenements along the Hill End gold system in NSW’s famous Lachlan Fold Belt, 60km from Australia’s largest gold mine, Cadia.
Vertex believes Reward is well placed for a simple start-up, with the existing gravity processing plant located adjacent to the underground mine access point.
There’s also more where this came from, with the company recently releasing an exploration target of 211,000-320,000oz @ 12.5-19g/t at Fosters, an area ~400m south of Reward.
The PFS paints a positive picture for future growth with life of mine (LOM) pre-tax cash of $35.7m at $3,000/oz gold price and average monthly production of 2,169oz over 23 months with 92% gold recovery.
The mine design is based on mechanised mining methods with long hole open stoping and remotely operated loaders selected as the primary stoping method.
VTX says the decision to undertake a PFS on the current resource base reflects the significantly improved exploration drilling outcomes that will be achieved through drilling from new development within the underground mine.
The project topography limits drill platforms, and the existing underground workings are all within the mineralised corridor and the workings do not provide sufficient access to the hanging wall to provide good exploration drill locations.
VTX’s board of directors recognise that the conversion of the Inferred Resource to an Indicated Resource through more drilling would significantly enhance key financial metrics but while alternative development options were considered, the pathway outlined provides a more ‘robust financial outcome’.
‘Strong projected economics’
“The Reward gold mine continues to represent a highly attractive mine development opportunity in the NSW region,” VTX executive chairman Roger Jackson says.
“In determining the parameters for this study, the decision was taken to base the projected figures on the Indicated resource achieved to-date.
“The board remains firmly of the view that this is the most commercially prudent way to develop the mine, given the cost and logistical benefits that can be achieved by carrying out further drilling from underground alongside mining activities.
“Pleasingly, the numbers outlined in our PFS already demonstrate the strong projected economics of the Reward gold mine,” he says.
“This is based on the existing Indicated resource, notwithstanding the clear potential for further significant resource upgrades as mining operations get underway, as we have high grade exploration targets sitting alongside and below the mining envelope.”
This article was developed in collaboration with Vertex Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.