West Kirkland Update On Hasbrouck Project
VANCOUVER, BRITISH COLUMBIA, June 23, 2015 – West Kirkland Mining Inc. (WKM:TSXV) (“West Kirkland” or the “Company”) provides an update on the Company’s activities since it announced the results of an independent prefeasibility study (PFS) of the Hasbrouck Project, Nevada, produced by Mine Development Associates (MDA) of Reno.
Value engineering work to optimize the mine development sequencing, permitting work and modest exploration work are ongoing at the Hasbrouck Project.
Allied Nevada Gold Corp. (“Allied Nevada”) announced June 19, 2015 that a division of Waterton Funds had purchased its 25% interest in the Hasbrouck Project and all the other exploration assets of Allied Nevada for US $17.5 million. West Kirkland‘s rights are not directly affected by this change. West Kirkland holds the title to the Hasbrouck Project and regards the asset as the most advanced property that was offered for sale by Allied Nevada.
Key activities to advance the Hasbrouck Project in the months ahead include the following:
- MDA is drafting a technical report in support of the PFS findings announced on June 3, 2015, which is to be filed on or before July 17, 2015. Sensitivity studies on the timing of construction of the second open pit at Hasbrouck versus gold recovery at the Three Hills leach facility is being evaluated under different scenarios. At US$1,225/oz Au and US$17.50/oz Ag, the project has US$75.3 million after-tax NPV (5%) and 26% IRR (see news release dated June 3, 2015). A trade-off study is looking at the effects on IRR and peak funding in the timing of the two operations. The results of these sensitivities will be part of the final report.
- A Decision Record from the US Bureau of Land Management (BLM) and state-issued construction permits for the Three Hills mine are targeted for the fourth quarter of 2015 to early 2016.
- Permitting work at Three Hills under the EA continues with baseline data collection and assessment while West Kirkland finalizes access agreements with Esmerelda County in Nevada.
- Permitting work is also progressing at the Hasbrouck deposit in preparation for submitting a Mine Plan of Operation to the BLM later this year. West Kirkland is working under the assumption that Hasbrouck will likely be permitted under an Environmental Impact Statement. Baseline data collection, including required detailed information regarding flora, fauna and cultural artifacts, is now in progress in accordance with the overall project timeline.
Geochemical surveys are ongoing to refine on-property exploration targets. A review of the structural control of Three Hills has identified the potential to extend mineralization to the east of the declared deposit and planned pit wall. Drill results on these structures include an intercept of 39.6 meters of 1.36 g/t Au, at 54.9 meters from surface in a ground water monitoring well installed as part of permitting work. This exploration target has the potential to significantly increase the Three Hills deposit to the east. The project model is sensitive to modest increases in mine life at the phase 1 Three Hills pit since it is mined first and cash flow from this pit is modelled to cover part of the development at the larger Hasbrouck mine.
Three Hills current gold resources are as follows using a 0.005 oz Au/ton cut-off:*
- Indicated resources of 10.9 million tons at 0.017 oz Au/ton for 189,000 oz Au.
- Inferred resources of 2.6 million tons at 0.013 oz Au/ton for 32,000 oz Au.
At the Hasbrouck property, the Company is completing soil surveys over the southern portion of the project where geophysical methods have identified targets similar to the Hasbrouck and Three Hills deposits. These targets are untested by previous owners and are on claims that were staked in 2012.
Current Hasbrouck gold resources are as follows using a 0.006oz AuEq/ton cutoff: *
- Measured resources of 8.3 million tons at 0.017 oz Au/ton for 143,000 oz Au.
- Indicated resources of 45.9 million tons at 0.013 oz Au/ton for 595,000 oz Au.
- Inferred resources of 11.8 million tons at 0.009 oz Au/ton for 104,000 oz Au.
Notes to Three Hills and Hasbrouck resource estimates:
1.CIM definitions are followed for classification of Mineral Resources.
2.Mineral Resources are estimated using a gold price of US$1,300 per ounce and a silver price of US$22 per ounce.
3.Totals may not represent the sum of the parts due to rounding.
4.The Mineral Resources have been prepared by Paul Tietz, C.P.G of Mine Development Associates in conformity with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators NI43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all mineral resource will be converted into mineral reserve.
About the WKM Hasbrouck Project
Located near Tonopah, Nevada, the Hasbrouck Project consists of two oxidized gold deposits eight kilometers apart, Three Hills and Hasbrouck. West Kirkland has a 75% controlling interest in the project.
Allied Nevada Sale of its 25% Interest in the Hasbrouck Project to Waterton Precious Metals
On June 19, 2015, Allied Nevada Gold Corp. ("Allied Nevada”) (OTCBB:ANVGQ) announced that the United States Bankruptcy Court for the District of Delaware had approved the sale of Allied Nevada's exploration properties and related assets (excluding the Hycroft operation) to Clover Nevada LLC ("Clover Nevada"), a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP ("Waterton") for US $17.5M. The sale does not materially affect the contractual rights of WKM and WKM holds the title to the Hasbrouck properties.
The Acquired Assets include all of Allied Nevada's patented and unpatented mining claims and rights associated with properties other than Hycroft, including any royalties or similar interests. Successful closing of the transaction is subject to customary closing conditions and is expected to be completed by the end of June 2015.
*Authors and Qualified Persons Statement
The Prefeasibility Study and Mineral Resource Estimate were prepared in conformance with NI 43-101 by Mine Development Associates (MDA). The report was prepared by Thomas L. Dyer, P.E. and Paul Tietz, C.P.G. of MDA, with contributions by Herb Osborne, Metallurgical Eng., SME, of H.C. Osborne & Associates (metallurgy), Ryan Baker, P.E., of Newfields (civil and heap leach) and Carl Defilippi, SME, of Kappes Cassiday & Associates (process design). Each person is a "Qualified Person" under NI 43-101 and has reviewed and approved the information in this news release relevant to the portion of the Hasbrouck prefeasibility study for which they are responsible. MDA has reviewed and verified the data disclosed in this news release to be in conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and in accordance with NI 43-101. West Kirkland will file on SEDAR a technical report in support of the technical disclosures made in this news release within 45 days.
Sandy McVey, P.Eng., Chief Operating Officer for West Kirkland, and a non-independent Qualified Person as defined by NI 43-101, has also reviewed the information contained in this news release and has verified the data.
About West Kirkland Mining Inc.
West Kirkland was formed in 2010 to focus on gold exploration along major geological trends in North America. The Company has consolidated significant mineral rights positions within the known gold trends of Nevada and Utah, including the recently acquired Hasbrouck and Three Hills properties in southwestern Nevada. The founders and board members of West Kirkland have successful and extensive experience in gold discovery, mine development, and mine operations in Nevada and other gold producing jurisdictions in North America.
For more information, contact:
Knox Henderson, VP Investor Relations, at (604) 685-8311
Disclaimer for Forward-Looking Information
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. Forward-looking information in this news release includes, without limitation, the statements regarding the ability to achieve the recoveries and the processing capacity of the mines; regulatory processes and permitting; estimates of gold or other minerals grades; anticipated costs, anticipated sales, project economics, the realization of expansion and construction activities and the timing thereof; production estimates and other statements that are not historical facts. Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in the prefeasibility study are also forward-looking statements in that they reflect a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. Although West Kirkland believes that such timing and expenses as set out in this press release are reasonable, it can give no assurance that such expectations and estimates will prove to be correct. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for gold or other minerals that may be produced generally, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine, a significant change in the availability or cost of the labor force required to operate a mine, a significant increases in the cost of transportation for the Company’s products, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors Regarding the Use of Mining Terms
This press release has been prepared in accordance with the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resources and reserve estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the U.S. Securities and Exchange Commission (the “SEC”) Industry Guide 7, and resource or reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, “resources” and “reserves” established under NI 43-101 standards may not qualify as “resources” and “reserves” under U.S. standards. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. In addition, under U.S. standards, a “Final” or “Bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. Accordingly, information concerning mineral deposits set forth in this press release may not be comparable with information made public by companies that report in accordance with U.S. standards.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.