Vertex Minerals Launches High-Grade Underground Gold Production at Reward Mine
Vertex Minerals has initiated underground mining at its Reward Gold Mine, marking a significant shift to high-grade gold extraction. The company is progressing steadily with infrastructure and mining fronts to sustain continuous production.
- First blasting of gold-producing ore on Lady Belmore Reef completed
- High-grade underground mining set to commence in coming weeks
- Reward Gold Mine resource estimated at 225,200 ounces at 16.7 g/t gold
- New transformer substation and ventilation fan installed and operational
- Vertex remains debt-free and fully funded with no hedging
Operational Milestones Achieved
Vertex Minerals Limited (ASX – VTX) has announced the commencement of underground production at its Reward Gold Mine, located in the Hill End region. The company recently completed the first blasting of gold-producing ore on the Lady Belmore Reef, a key step towards transitioning from low-grade stockpile processing to high-grade underground mining. This initial ore will supplement the existing feed to the Gravity Processing Plant while additional mining fronts are prepared.
Infrastructure upgrades have been a focus, with the installation and powering up of an 11kva to 1000v transformer substation and the completion of cabling to the primary ventilation fan. These developments are critical to supporting the underground mining operations and ensuring a safe and efficient working environment.
Advancing High-Grade Mining Fronts
Vertex is actively preparing access drives to two starter stopes, which will soon be drilled using the Epiroc Production Rig. The company aims to develop at least four mining fronts to maintain a continuous feed of ore to the processing plant. Additionally, the Mica Vein decline has been fully dewatered and is ready for flatback mining, further contributing to the gold feed.
The Reward Gold Mine boasts a substantial mineral resource estimate of 419,000 tonnes at an average grade of 16.72 grams per tonne, equating to approximately 225,200 ounces of gold. This high-grade resource underpins Vertex’s confidence in the mine’s long-term production potential.
Strategic Position and Financial Strength
Vertex highlights its fully funded, debt-free position with no hedging arrangements, providing financial flexibility as it ramps up production. The company’s flagship Reward Gold Mine benefits from a rich history of gold mining in the region, including proximity to the historic Hawkins Hill mine, which produced 435,000 ounces at an extraordinary grade of 309 g/t gold.
Production from low-grade stockpiles is already underway, with coarse free gold being recovered by gravity methods at the newly commissioned Gekko gravity gold plant. Vertex anticipates that high-grade underground production will commence in the coming weeks, potentially enhancing recovery rates to as high as 95% using gravity processes alone.
Looking Ahead
While the company has not provided explicit production volume or cost guidance, the operational milestones achieved signal a promising start to underground mining at Reward. Vertex’s technical team continues to advance development and mining activities, aiming to unlock the full potential of this significant gold system, which extends over 25 kilometres of strike.
Investors and market watchers will be keen to monitor upcoming production reports and financial results to assess how these developments translate into cash flow and profitability for Vertex Minerals.
Bottom Line?
Vertex’s transition to high-grade underground mining at Reward sets the stage for a potentially transformative production phase.
Questions in the middle?
- How quickly can Vertex scale up high-grade underground production to full capacity?
- What will be the cost profile and profitability of the new underground operations?
- Are there any operational risks or delays anticipated as multiple mining fronts are developed?
