Vertex Minerals (ASX: VTX) issues latest update on Hill End Gold plant, shares jump

Highlights

• Vertex is progressing developments aimed at start-up operations of the Reward Gold Mine at Hill End.
• Commissioning works are nearing completion to aid the processing of stockpiled material adjacent to the plant site.
• The commissioning process provided the first gold in concentrate in August.
• A new Wilfley gold table has been acquired to ramp up operations at Hill End.
• The company has executed a gold refining agreement.
• Production ramp-up will happen during September 2023.

Australian gold exploration company Vertex Minerals Limited (ASX: VTX) has shared an update on the Reward Gold Mine at Hill End.

The company is preparing for mine operations after completing a PFS on the high grade Reward Gold Mine.

The company informed that commissioning works are expected to be completed soon, and it would support the processing of stockpiled material close to the plant site. Commissioning has commenced on a four-day week basis, on limited throughput.

Data source: Company update

Shares jump over 14%

Post the update, VTX shares gained over 14.2% to trade at AU$0.120 midday on 6 September 2023. In the last six-month period, the shares have jumped by over 33%.

More on the gold plant progress 

The current focus of commissioning is to achieve the optimal water balance through every step of the concentration process. The aim is to maximise gold recovery along with maintaining high material throughput and plant availability.

The first gold in concentrate was achieved through the commissioning process in August.

The gold concentrates produced are planned to go through on-site refining and then smelted to a doré bar. The doré bar will be transported to the ABC Refinery in Sydney.

After extensive due diligence, the company executed a gold refining agreement with ABC Bullion Sydney. As per this agreement, the doré produced would be sent to the refinery, which is located in Sydney which is close to mine operations at Hill End.

The company has acquired a new Wilfley gold table to manage the pending increase in capacity requirements. To manage stockpile movements, a new 25-tonne caterpillar excavator reached the site last month.

In addition to these developments, the VTX management team has completed an extensive list of on-site upgrades.

All in all, ongoing start-up operations at the plant are nearing completion. Production ramp-up is due this month.