A swift time to commissioning rewards Vertex with early cash flow. Pic: Getty Images
Vertex processes first ore for early gold Reward
Mining
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- Vertex checks off more milestones ahead of first sales at the Reward gold mine
- Gekko plant ideally suited to produce sustainable ounces from very high-grade resource
- Diamond rig on the way to extend Reward’s two year mine life
Special Report: Vertex Minerals has processed first ore and begun commissioning of the high-grade Reward gold mine, with sales expected early next month.
The newly installed Vertex Minerals (ASX:VTX) gravity gold plant processed ore to a gold concentrate with visible gold, with installation of the ore sorter module now well underway at the high-grade New South Wales mine.
Commissioning is using the stockpiled gold ore sitting next to the plant as its focus of first production and sales in early February.
Vertex snagged the Gekko plant last year with expectations of dramatic cost reductions and earlier production targets, and handover is underway from the processing experts with VTX’s key operators now onboarded.
Vertex executive chairman Roger Jackson said to commission the project in under 12 months since an updated prefeasibility study was a tremendous achievement, commending both the Gekko and Vertex teams on their efforts.
“The ore sorter, which is a separate module to the gravity plant, is also ahead of time and within budget, and is expected to be commissioned in early February,” Jackson said.
“We are looking forward to running one of Australia’s most unique and environmentally sympathetic gold plants.”
He noted it was a very small but high-tech plant, utilising ore sorting and gravity methods to process high-grade gold without chemicals or a bald mill.
“It was a wonderful moment to see ore going through the crushing circuit and into the centrifugal concentrators, and within a few minutes to see visible gold in the concentrate produced,” Jackson said.
“We now look forward to further optimising plant operation, training our operators and the move to commercial operating status with solid cash flow.”
Little risk for Reward
While Vertex has other prospects within its Hill End and Hargraves project in the gold M&A hotspot of the Lachlan Fold Belt, getting to production from the super high-grade 419,000t at 16.72g/t Reward resource was a simple decision with gold prices now over $4300/oz.
Vertex believes the Gekko plant is ideally suited to the free milling, high-grade ore, and would also reduce water demands as it looks to boost margins on its ounces.
The company isn’t the only gold junior to leverage record prices and enter early production, and while the pre-feasibility study covers just two years of processing, Vertex believes it can continue to build on a high-grade inventory throughout mining.
VTX is set to acquire its own diamond rig to begin expanding the resource once in production and up its own presence in a corner of New South Wales that Jackson believes is ripe for a mining revival.
That first cash is yet to hit the bank, but the VTX ticker nevertheless enjoyed a share price bump of close to 20% in early trading.
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.
