Expected life of mine savings of $15 to $20m
Northern Vertex Mining Corp. is pleased to announce that the Company has commenced construction of a $2.1 million, 6.9 mile electrical transmission system, and has completed a definitive, non-dilutive term loan financing agreement, which will secure the long term low cost power supply to the Moss Mine. System design is complete, long lead time items have been purchased, and construction of the system is expected to be completed in Q3 2020. Northern Vertex is partnering with Mohave Electric Corp. for both the finance and construction of this long-term, sustainable grid power supply.
Highlights of the Powerline:
- Reduction in electrical costs from a historical $0.31 per kwh to a grid-supplied cost $0.09 per kwh;
- Operational and maintenance savings of ~ $15 to $20 million over the life of mine;
- Reduction in AISC of ~$50 per gold ounce;
- Attractive 15-year financing at a rate of less than 2% per annum.
- Significant environmental benefits by switching from diesel power generators to grid power.
Kenneth Berry, President and CEO, states: “Access to sustainable grid power is a positive milestone for all stakeholders and supports our vision of a multi-year mine-life at our Moss Mine in Northwest Arizona. On March 19, 2020 we announced receipt of our Federal Permit to extend Moss Mine operations from our patented claims onto the surrounding federal lands. This Federal Permit, along with the grid power to be facilitated by Mohave Electric, provides the Company with a clear path to lower costs and the ability to extend the mine life for many years to come. We thank our partners Maverix Metals and Mohave Electric for the commitment they have shown to this project and the community of Mohave County. In addition, we are very proud of our more than 150 strong team of men and women for persistence in achieving two significant milestones during the recent quarter.”
COVID- 19 Update
Northern Vertex wishes to provide an update regarding the COVID-19 situation. To date, the Company reports no known or suspected cases of COVID-19 infection at the Moss Mine or its office in Vancouver. As a result, production at the Moss Mine will continue to operate while Northern Vertex follows the recommendations and guidelines of public health authorities at both levels of state and federal government. In conclusion, the Company has implemented several initiatives to deal with potential interruptions and will continue to closely monitor the rapidly changing situation in order to adjust its plans if necessary.
Source: Company Press Release