Northern Vertex, Kootenay receive final Copley approval

2011-01-18 20:21 ET - News Release

See News Release (C-NEE) Northern Vertex Capital Inc

Mr. Joseph Bardswich of Northern Vertex reports

NORTHERN VERTEX RECEIVES TSX APPROVAL FOR COPLEY GOLD PROPERTY OPTION AGREEMENT AND RESUMPTION OF TRADING

Northern Vertex Capital Inc. has received final approval from the TSXVenture Exchange (conditional approval received Nov. 29, 2010) regardingthe previously announced letter agreement (see news releases inStockwatch dated Nov. 15, 2010, and Jan. 7, 2011) with Kootenay GoldInc. whereby Northern Vertex has the right to earn an undivided60-per-cent interest in the Copley gold property located in the NechakoPlateau of central British Columbia in exchange for issuing a total of800,000 common shares of Northern Vertex to Kootenay and financing$2.2-million of exploration expenditures on the property within afour-year period. The transaction has received final approval and abulletin has been issued today from the TSX-V. With the issuance of thebulletin and the trading halt lifted, shares of Northern Vertex willcommence trading at the open of business on Wednesday, Jan. 19, 2011.

Overview of gold potential of the Copley property

Highlights of channel sampling

Recent channel samples reported:

• 10.02 grams per tonne gold over two metres;
• 4.8 g/t gold over three metres;
• 0.55 g/t gold over seven metres;
• 0.33 g/t gold over nine metres (with 0.461 g/t gold over five metres);
• 0.226 g/t gold over eight metres.

Size potential

The gold-bearing system is large, at least six kilometres long and two kilometres wide within a 2,926-hectare property.

Favourable geological setting

Gold occurs in three aligned topographic domes underlain by silicified rhyolite.

Textures and alteration consistent with gold deposition

The zone of boiling (gold deposition) is manifest as:

• Quartz-replacing bladed calcite crystals;
• Miarolitic cavities lined by fine crystalline quartz crusts;
• Silicification;
• Celadonite and argillic alteration.

Significant ground preparation

Several surges of brecciation andstockworking focused fluid flow and provided the opportunity for goldtransportation and deposition.

Regional-scale structures

At least one major east-west structure traverses the property, topographic and magnetic linears suggest several are present.

Blackwater as an analogue

Copley is geologically similar toBlackwater, Richfield Ventures Corp.'s important new bulk-tonnagediscovery located 40 kilometres to the south.

Excellent infrastructure and logistics

All-season road access and a nearby power grid have important long-term cost implications.

Under the direction of Dr. Robert Thompson (project manager), Kootenay,the operator, has undertaken a drilling and sampling program. Assayanalysis and results from an 11-hole 1,000-metre drill program areexpected within the next few weeks.

The foregoing geological disclosure has been reviewed and verified byDr. Thompson, Phd, PEng, a qualified person for the purpose of NationalInstrument 43-101, standards of disclosure for mineral projects. ACIM-compliant NI 43-101 technical report will be filed on SEDAR shortly.

Terms of agreement

To fulfill the terms of the letter agreement, Northern Vertex must spenda total of $2.2-million on exploration over four years and issue up to800,000 shares, with 200,000 shares due within five days of regulatoryapproval of the letter agreement and 200,000 common shares of NorthernVertex due on or before the first-year anniversary and each of thesecond and third anniversaries thereafter of the execution date.Subsequent to exercise of the earn-in option, Northern Vertex andKootenay will form a 60-40 joint venture. Financing of further work onthe Copley gold property will be on a proportional basis under thedirection of a management committee with voting rights proportional toownership percentage. Either party may be diluted on the basis of astandard formula if they do not contribute to the planned programs. Ifeither party is diluted below 10 per cent, its interest will convert to a1.5-per-cent net smelter return royalty. Kenneth Berry is a directorand officer of both Northern Vertex and Kootenay.

We seek Safe Harbor.