Vertex Minerals has completed construction and begun commissioning of its Gravity Gold plant at the Reward Gold Mine, supported by significant capital raises and strategic hires.
- Gravity Gold plant construction completed and commissioning started
- Appointment of Chris Hamilton as General Manager, Operations
- Acquisition of Boart Longyear LM90 underground drill rig for exploration
- Raised over $7 million through placements and convertible notes
- Processed first ore post-quarter with visible gold concentrate
Strategic Milestone Achieved at Reward Gold Mine
Vertex Minerals (ASX: VTX) has marked a significant step forward in its development strategy with the completion of the Gravity Gold plant construction at the Reward Gold Mine in New South Wales. The company has now commenced commissioning activities, processing its first ore through the newly installed gravity gold plant, with visible gold evident in the concentrate.
This milestone follows a disciplined rebuild and refurbishment program, including the installation of power generation units, electrical works, and a dry stack tailings storage facility, all completed safely and on schedule. The plant's location adjacent to the underground mine portal positions Vertex well for streamlined operations as it transitions to production.
Strengthening Operational Leadership and Capabilities
In parallel with operational progress, Vertex appointed Chris Hamilton as General Manager, Operations for the Hill End Reward Gold Mine, bringing critical expertise to oversee the plant and mine operations. The company has also onboarded several key personnel and operators to ensure a smooth ramp-up aligned with the plant commissioning.
To support exploration efforts, Vertex acquired a Boart Longyear LM90 underground drill rig, enabling flexible and cost-effective diamond drilling below the existing Reward resource. This strategic asset allows Vertex to advance exploration targeting the 'Reward mid depths' zone, potentially expanding the resource base and enhancing future production prospects.
Robust Capital Raising Supports Growth and Development
Vertex successfully completed two capital raises during the quarter, securing approximately $7.1 million through a combination of placements and convertible note facilities. A $1.1 million placement at 16 cents per share was made to a strategic investor, alongside a $0.98 million convertible note facility at the same price point. Additionally, firm commitments for a $5.1 million convertible note loan facility at 17 cents per share were secured from institutional and sophisticated investors.
These funds are earmarked for finalising the gold plant, acquiring key equipment, underground mine development, sustaining costs, and working capital, positioning Vertex to advance towards becoming a significant Australian gold producer.
Environmental and Operational Efficiency Focus
Vertex's gravity gold recovery method emphasizes low capital and operating costs, minimal grinding, and environmentally sustainable practices. The plant operates without cyanide, uses low water volumes with reusable water systems, and employs dry stacked tailings to avoid tailings dams. The company is also exploring renewable energy options such as wind and pumped storage to further reduce its environmental footprint.
Looking Ahead
With commissioning underway and initial ore processing completed, Vertex is poised to ramp up production from existing stockpiles and commence underground mining development later in 2025. The company’s clear strategic focus includes expanding high-grade gold resources within the Hill End corridor and building a robust ESG reputation alongside shareholder value.
Executive Chairman Roger Jackson highlighted the unique opportunity Vertex holds to unlock value amid a positive gold price environment, underscoring the company’s disciplined execution and investor confidence.
Bottom Line?
As Vertex Minerals transitions from construction to production, the market will watch closely for operational performance and resource expansion outcomes.
Questions in the middle?
- How will the commissioning phase impact production volumes and costs in early 2025?
- What exploration results will the new underground drill rig yield from the Reward mid depths?
- How effectively can Vertex leverage its recent capital raises to accelerate mine development and resource growth?