A HIDDEN GEM

Cream Will Rise to the Top with this Hidden Little Gem

This little known ASX company has been beavering away at what it does best, seeking out great little Gold super rich projects.

Vertex Minerals Limited (ASX: VTX) is one such company. The board has been seeking out high grade Gold projects with minor thought about gigantic tonnes. It’s all about ounces, money and margins these days. The formula of having 10m tonnes a 2g/t Au for 650,000 ounces and spend $80m to explore it to a JORC compliant and feasibility study stage with the plan to develop it into a viable mining and processing project has been replaced by cunning experienced mining operators. The same resource can be found in one million tonnes at 10g/t Au for 650,000 ounces. A process plant cost at 1/10th the cost to construct and 1/10th the personnel, contractors, FIFO and operating costs to produce the same quantity of Gold.
The margins are maximised by lower mining and processing and associated costs. Even the administration costs are diminished.

An example of one such Vertex project is their Reward Gold & Hill End Gold mines in NSW. Vertex have a mineral resource of 419,000 tonnes of ore at 16.72g/t Au for 225,200 ounces of gold. (VTX Announcement 21/6/23) The Ore Reserve for the initial mining is based on a gold price of only $A3,000 ounce. Production schedule is based on. “reserve” of 130,000 tonnes @ 9.7 g/t Au for 40,900 Ounces based on 92% recoveries. The balance will be upgrade to reserve at much higher grade to achieve the higher tonnage/grade.

What makes this little gem even better is that there is no cyanide, or chemicals required as the gold is free milling and only requires crushing to -650 microns which is super coarse and 93% is recovered by gravity separation. No tailings dam required with the end product waste being able to become from the site and no storage required. This reduces 90% of the normal ridiculous EPA rehabilitation bond requirements. The mine will be operated by the owners Vertex with all Personnel directly employed. Free cash flow of over $41m over 2 years. (VTX Announcement 10/04/24)

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