Vertex Minerals accelerated gold production at its Reward Gold Mine to 284 ounces in the March quarter, supported by underground rehabilitation, operational upgrades, and new funding facilities. The company also expanded its exploration footprint with the Dun Dun licence and is pursuing 24/7 underground mining approval.
- Gold production increased to 284 oz, up from 123 oz in December 2025
- All three mining declines now in ore with flatback stoping commenced
- Secured A$9 million convertible loan funding post quarter-end
- Awarded Dun Dun Exploration Licence adding 50 km of contiguous geology
- Processing plant optimisations achieved over 99.5% quartz recovery
Gold Production Accelerates as Underground Rehabilitation Advances
Vertex Minerals Limited (ASX:VTX) marked a significant operational milestone in the March 2026 quarter, ramping up gold production at the Reward Gold Mine to 284 ounces, more than doubling the output from the previous quarter’s 123 ounces. The steady month-on-month increase culminated in a record 121 ounces produced in March alone, reflecting the successful rehabilitation of all three underground declines and the commencement of flatback stoping at Decline 3.
The underground workings, submerged for approximately 14 years prior to dewatering, required extensive rehabilitation including cutting, meshing, and bolting to ensure safe and productive access. This groundwork has enabled the mine to open multiple mining fronts, including the Paxton Reef on the 671 Level, where airleggers are actively targeting high-grade gold stopes. The arrival of a second Aramine tele-remote loader is set to provide operational redundancy as stoping activities intensify.
Operational Enhancements Focus on Grade and Efficiency
Under the leadership of newly appointed Executive Director of Operations Jim Simpson, Vertex implemented strategic operational changes aimed at accelerating the transition to commercial production. Development drive dimensions were reduced by approximately 20% to improve grade control and reduce dilution, supported by the upcoming deployment of modified Muki booms expected to be operational by June 2026. Additionally, blasting times were shifted to the end of shifts to increase available mining hours by about 25% per shift.
Processing plant optimisation also contributed to improved outcomes, with TOMRA ore sorter adjustments achieving over 99.5% quartz recovery. Further refinements have been made to capture residual quartz, maximising mill feed quality and supporting throughput increases as plant operational hours extended from 9 to 11 hours daily.
Corporate Developments Strengthen Financial Position
Vertex bolstered its balance sheet during the quarter by renegotiating an existing A$3 million loan facility and securing a new A$1.5 million loan facility, both carrying revised terms and interest rates. More notably, the company secured A$9 million in convertible loan funding post quarter-end, subject to shareholder approval. This funding, managed by Vert Capital Pty Ltd, is structured to convert into shares at the lower of A$0.14 or the prevailing volume weighted average price, with attaching options enhancing investor incentives. These facilities provide crucial financial headroom as Vertex advances the Reward Gold Mine ramp-up phase.
The financial strategy aligns with previous funding rounds, including the renegotiated $3 million loan facility and the A$9M convertible loan facility, reflecting a concerted effort to secure capital while managing dilution and cost of capital.
Exploration Expansion with Dun Dun Licence Award
Vertex’s exploration footprint expanded with the award of Exploration Licence 9868, known as Dun Dun, which adds approximately 50 kilometres of contiguous geology along the Hill End-Hargraves trend. This area hosts five gold-bearing quartz veins analogous to those mined at Reward, presenting promising targets for future drilling and resource growth. The contiguous nature of Dun Dun with existing tenements enhances the strategic value of Vertex’s landholding in the Eastern Lachlan Fold Belt.
Regulatory and Safety Progress
The company submitted a modification to its Development Application to Bathurst Regional Council seeking approval for 24/7 underground operations. If granted, this would effectively double available mining time, potentially accelerating production ramp-up toward nameplate capacity. Safety performance remained strong, with no lost time injuries recorded during the quarter and additional health and safety policies implemented to proactively manage operational risks.
Vertex ended the quarter with A$1.63 million in cash and undrawn financing facilities of A$9 million, positioning the company with approximately 39 quarters of funding at current net cash outflow rates, excluding capital expenditure. This financial buffer supports ongoing underground development and operational scaling as the Reward Gold Mine transitions toward steady-state production.
These developments build on Vertex’s earlier operational progress, including the commissioning of tele-remote mining systems and initial stoping activities reported in prior updates, underscoring a methodical approach to ramping up underground gold production at Reward with tele-remote mining systems.
Bottom Line?
Vertex’s operational and financial strides set a foundation for scaling underground gold production, but the timing of 24/7 mining approval and steady-state output remain pivotal milestones to watch.
Questions in the middle?
- Will the Bathurst Regional Council approve 24/7 underground operations this year?
- How will the integration of new narrow vein drilling rigs impact grade control and production efficiency?
- Can Vertex sustain the current production ramp-up trajectory as stoping activities expand across multiple fronts?