Vertex Minerals Eyes Gold Production With Capital Raising

Vertex Minerals Ltd (ASX: VTX) is targeting a $3.68 million raising at $0.08 via an entitlements issue, with $1.8 million underwritten by CPS Capital.

This is priced at a 12.1% discount to the last traded price.

Funds raised will mobilise the recently purchased Gekko Gravity gold plant and advance steps to the production of gold from the Reward high-grade underground gold mine.

The Reward Gold Mine hosts 225,2000 ounces at 16.72g/t gold.

The Gekko plant was purchased to upgrade and expand the existing Hill End Gravity plant, with the refurbished plant able to treat up to 120ktpa, a four-fold increase.

The gravity processing plant is located adjacent to the high-grade Reward Gold Mine portal, and the mine development extends into the resource, so only stripping and refurbishment of the access are required.

Reward is located within the Hill End Project, in the central west of New South Wales between the major regional centres of Bathurst and Mudgee, around 200 kilometres from Sydney.

Pre-Feasibility Study Key Metrics

  • Life of mine pre-tax cash of $41 million at A$3,000 an ounce gold price
  • Gross revenue of $150 million
  • IRR of 110% pre-tax
  • 6-month payback
  • AISC of A$1833 an ounce
  • Average monthly gold production of 2,169 ounces over 23 months with a 92% gold recovery
  • Planned processing of 181,000 tonnes of material at a head grade of 9.3g/t gold for 49,890 ounces
  • $17 million of capital is required prior to production

The mine has all the necessary permits to support the commencement of mining and processing.

Articles of Interest