Vertex Minerals Limited (VTXXF) Commences Underground Gold Production at Reward During FY2026
Vertex Minerals Limited (ASX:VTX) (OTCMKTS:VTXXF) commenced underground gold production at the Reward Gold Mine in August 2025 and sold gold in each quarter of the financial year ended 30 June 2026. The Company progressed underground rehabilitation, commissioned supporting infrastructure and prepared for mechanised narrow-vein mining.
Operations and Development
Reward produced 679 oz of gold and sold 657 oz during the year. Processing transitioned progressively from surface stockpiles to underground ore, with the plant treating underground ore exclusively from November 2025.
Infrastructure commissioned included the underground transformer substation, primary ventilation, underground communications, and water and power reticulation. The gravity processing plant operated throughout the year without cyanide or other chemical reagents.
Rehabilitation of the three underground declines dominated the work programme. Ground conditions required substantially more support than anticipated, extending the production ramp-up beyond the initial timetable. Production remained below the rate contemplated in the mine plan.
Decline 3 rehabilitation was completed, together with Decline 3 flatback Lift 2, including backfilling. Decline 2 rehabilitation was completed during the June 2026 quarter. Decline 1 was substantially advanced at 30 June 2026 and completed after year end.
Vertex established multiple mining fronts and commissioned a loader with tele-remote capability in November 2025. Mechanised long hole open stoping had not commenced at scale during the financial year; most ore delivered to the plant came from development headings and airleg stopes.
The Company secured the Dun Dun exploration licence, EL 9868, consolidating approximately 50 kilometres of contiguous geology along the Hill End-Hargraves trend. No field exploration was undertaken on the licence during the year.
Financial Position and Funding
Audited revenue from gold and silver sales was $4,240,464, compared with $287,692 in 2025. The consolidated loss after income tax was $16,408,200, compared with a loss of $5,851,980.
The result included finance costs of $2,518,557 and a fair value loss on derivative financial liabilities of $4,364,889.
Cash and cash equivalents at 30 June 2026 were $2,323,836, compared with $1,724,886 at 30 June 2025. Net operating cash outflow was $5,074,603. Net assets were $21,105,055, compared with $15,499,788 at 30 June 2025.
Current liabilities were $23,375,805 against current assets of $5,001,016, resulting in a net current liability position of $18,374,789.
On 29 June 2026, Vertex obtained commitments for a $9.0 million convertible loan facility. After balance date, the Share Purchase Plan raised $858,000, and committed convertible loan facilities of up to $4.2 million were secured on 7 September 2026.
Conversion into equity is subject to shareholder approval. If approval is not obtained, the VTXCL3 loans become repayable in cash four months after the relevant shareholder meeting, requiring alternative funding arrangements. After year end, the Global ESG Investments Limited loan maturity was extended to 2 November 2026.
Subsequent Events and Project Evaluation
Trial mechanised longhole open stope production rings were fired in late July 2026, with ore processed in August 2026. Mechanised bottom-up long hole stoping is scheduled to commence in October 2026.
Bathurst Regional Council approved underground operations and blasting 24 hours a day, seven days a week on 20 August 2026. Approval of the varied Environment Protection Licence was announced on 18 September 2026.
An updated Reward Mineral Resource estimate was announced on 11 September 2026. The Company reported a 35% decrease in contained ounces, reflecting a 200 g/t Au top-cut applied to a small number of extreme outlier assays and a reduction in the number and size of interpreted lodes. Certain lodes no longer meet the JORC Code requirement for reasonable prospects for eventual economic extraction. The Company stated that the update did not materially change its current mine plan or underground development schedule.
Executive Chairman Bruce McInnes wrote in his Chairman's Report:
"Exploration field activity was intentionally limited during the year as the Company prioritised its resources toward underground development and production at Reward."
*To view Vertex Minerals Annual Report, please visit:
https://abnnewswire.net/lnk/Q6K9Q0L3
Editorial Note:
This media release has been independently prepared by ABN Newswire editorial staff based on Vertex Minerals' Annual Report for 2026. It is intended as an editorial summary of information disclosed in that report and should be read in conjunction with Vertex Minerals' full ASX announcement. All financial, operational and post-reporting-period information in this editorial has been sourced from the Company's report.
Roger Jackson Executive Chairman Tully Richards Technical Director tully@vertexminerals.com.au
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