Vertex Minerals Limited announced that it has completed an updated Mineral Resource estimate for the Reward gold deposit at its 100%- owned Hill End Gold Project near Orange in the NSW Lachlan Fold belt. The upgraded Resource for the Reward Gold Mine now totals 837 kt at 8.5 g/t Au for 277,000 oz. This brings Vertex's Global Resource estimate for the Hill End and Hargraves Projects to 485,000 ounces.

The Reward deposit of the Hill End Project is located 190km north-west of Sydney, adjacent to the town of Hill End, NSW, Australia. Mineralisation at the Reward deposit occurs within a series of bedding parallel quartz veins occurring along the limbs of the Hill End Anticline which is in the Hill End Trough, containing sedimentary and volcanic rocks. The age of trough is mid-Silurian to mid-Devonian.

The deposit is best described as a brittle, thrust- dominated, competency-controlled orogenic gold low sulphide system developed post ductile deformation. Gold in the area has been mined since the late 1800's with 435,000 ounces recovered from 44,000 tonnes of ore mined from a deposit adjacent to Reward. Modern exploration commenced in the early 1980's with series of drilling programs (RC and DDH) and trial mining occurring within the Reward deposit in the 2000's. Grade domains for constraining Resource estimation were interpreted and modelled based on the geological logging and assay results contained within the supplied database.

The resource model is based on statistical and geostatistical investigations generated using 1m composited sample intervals. Assessment of the data suggests requirement for high-grade cutting (high grade cuts) for the input datasets to be used for resource estimation. A high-grade distance restriction was used in the estimation.

A rotated, sub-celled block model was constructed using parent block dimensions of 1m East by 10m North by 10mRL with sub-blocking for the purpose of providing appropriate definition of the grade domain boundaries. Resource estimation was carried out for gold based on analytical results available up to October 2022. Ordinary Kriging (OK) was selected as an appropriate estimation method based on the quantity and spacing of available data and style of deposit under review.

The estimated Resource has been classified in accordance with the guidelines set out in the JORC Code (2012). Resource categories have been assigned based in confidence in geological knowledge, sampling and assay data, data density, variogram model ranges and prospects for eventual economic extraction. A total of 289 holes have been drilled into the Reward deposit, totaling 27,636m of drilling.

Seventy five %(75%) of holes drilled are diamond drilling (DDH), 11% reverse circulation (RC) and 14% RC collar with DDH tail. Sampling techniques vary depending on sample type, namely diamond core, RC chips or face samples. For all core samples, quartz veining was sampled by diamond.

Routinely a few centimetres of wall rock around the vein(s) were included in the sample to ensure that the vein footwall and hanging wall were left intact. Core was cut down the structural long axis and the same relative portion of half core was always sampled. Some intervals of strong fracture fill and disseminated sulphides were also sampled.

Sample intervals, true vein thickness, angle of vein to core axis and vein composition were recorded. Minimum sample length is approximately 5cms, and maximum sample length is restricted to approximately 30cms so that the sample will fit in one 1kg pulveriser. Wall rock between samples without quartz veining is typically not assayed.

Sampling of wall rock adjacent some of the highest- grade intervals drilled to date was carried out to test for peripheral mineralization. Minimal values were returned giving confidence to the premise that the gold is restricted to quartz veining. For all post 2005 RC drilling, dust samples were collected in a side-mounted cyclone and dumped into large plastic bags annotated with the Hole Number and the interval depth (e.g. HHRCD19, 34-35m).

The bags were stacked in order at each site. A wet sample was frequently encountered at the water table. In all cases the water was able to be controlled and only a few samples were damp in the entire program.

This is probably due to free draining old workings below the area of RC drilling. After weighing on a floor scale, each sample was carefully passed through a cradle riffle splitter by 2 field assistants sufficient to produce a approximately 3kg sample for dispatch to the laboratory. The 3kg sample was placed in a calico bag with a sample number recorded on the outside of the bag with felt marker pen.

Samples were collected in groups of 5 (±20kg aggregate) and placed in woven bags, with the sample numbers marked on the outside of the bag, for consignment to ALS Chemex in Orange NSW. The woven bags were transported to ALS Orange by HEG staff. Face samples were approximately 8kgs of representative vein material taken by a geologist from the face.

Only quartz vein material was sampled, with two or more samples collected if two or more veins are present. The distance between faces is approximately 1.75m and generally every second face was sampled giving approximately 3.5m sample spacing or rarely a 5.4m sample spacing. Assaying of samples was generally undertake using conventional fire assay or screen fire assay, although some samples were treated with "Leachwell" reagent with fire assay finish.

Historically the Hill End deposit has been described as a slate-belt gold system however it is better modelled as a brittle, thrust-dominated, competency controlled orogenic gold low sulphide system developed post ductile deformation. The Hill End Anticline plunges to the north at approximately 10° in the Hill End area. The strata have a maximum dip on the limbs of the fold of about 60°.

Local reversals of dip occur where small drag folds are developed on the limbs of the main structure. A well-developed axial plane cleavage strikes 170° and dips 80° on the eastern limb of the anticline. A weak sub-vertical foliation, which trends at approximately 115° and pre-dating the axial plane cleavage is observed locally.

A crenulation cleavage post-dating the axial plane cleavage is also developed. Several sub-vertical small-scale faults, which show reverse or oblique slip movement, were encountered during mining on the eastern limb. These faults strike at approximately right angles to the fold axis and have lateral displacements up to 0.8m.