West Kirkland Mining and Rubicon Minerals Announce an Agreement on Large Claim Block on the Long Canyon Trend, Nevada
June 27, 2011
VANCOUVER, BRITISH COLUMBIA – West Kirkland Mining Inc. (WKM: TSX-V) ("West Kirkland" or the "Company") and Rubicon Minerals Corporation, (TSX:RMX, NYSE AMEX: RBY) ("Rubicon") have entered into an agreement whereby West Kirkland can earn a majority stake in mineral rights held by Rubicon covering approximately 351 square miles (909 sq. kilometers) in the Long Canyon Trend of north eastern Nevada, while allowing Rubicon to retain a significant interest in any future discovery.
Recent discoveries of gold by Fronteer Gold (now Newmont) and others at Long Canyon have resulted in a paradigm shift in the belt, opening up new potential for discovery of large scale gold deposits. Long Canyon is located along a north east structural setting in rocks only recently discovered to be favorable hosts for gold.
West Kirkland can earn a 51% interest from Rubicon in a portion of the Rubicon property package directly across the valley to the north east from the Long Canyon gold deposit. There are gold showings noted in historic work in this part of the overall property package, also there are unexplored north east trending structures, outside areas of historic exploration. These newly recognized structures are an immediate target for West Kirkland's planned exploration program.
Further to the north, West Kirkland can earn a 60% property interest in a portion of the Rubicon property package of the Long Canyon Trend adjoining the KB and TUG properties that are optioned by West Kirkland from Fronteer. The resulting consolidation of property interests provides a significant new opportunity. West Kirkland is currently drilling on the TUG property in the area of a shallow historic gold resource. Drilling is ongoing.
R. Michael Jones, President of West Kirkland said, "We now have the benefit of a newly recognized deposit setting in the best gold camp in the United States and an enormous land position to explore across. This transaction follows West Kirkland's approach to acquire large majority positions in known gold trends with new information where we can work these trends systematically. "
David Adamson, President and CEO of Rubicon said "We are pleased to see this large property portfolio well funded through this agreement and moved forward by a solid dedicated team at West Kirkland who has a considerable track record of discovery. This transaction allows us to maintain our focus in Red Lake while allowing us to retain a meaningful interest in any potential discovery on our properties in Nevada".
West Kirkland can earn an initial 51% interest in any of the properties where Rubicon holds a 100% interest by making the expenditures outlined in the table below over four years and Rubicon will retain a 49% interest in the properties. The first year's expenditure is a firm commitment of $2,000,000.
West Kirkland can increase its interest to 60% by completing a pre-feasibility study or spending an additional $4,000,000 in exploration and development work, in which case Rubicon will retain a 40% interest in the properties. For properties in which Rubicon holds a 75% interest, West Kirkland is able to earn up to a 51% interest in such properties by making the outlined expenditures.
|Annual Period||Annual Minimum of Exploration and Development Expenses||Aggregate Exploration and Development Expenses|
|First Annual Period||$2,000,000 (firm commitment)||$2,000,000|
|Second Annual Period||$3,000,000||$5,000,000|
|Third Annual Period||$5,000,000||$10,000,000|
|Fourth Annual Period||$5,000,000||$15,000,000|
West Kirkland is the project operator. Initial exploration will be targeted across the valley from Long Canyon and adjacent to the KB and TUG deposits. The property positions included in the Rubicon transaction are in the "checker board" of Nevada where each block of 1 square mile of property has another owner on the alternate one square mile square. As exploration progresses further consolidation of mineral rights may be required. Initial exploration will focus well within the owned blocks.
About West Kirkland Mining Inc.
West Kirkland is focused on large scale exploration for gold on known trends in Canada and the United States. The company has established mineral rights positions in Kirkland Lake Ontario and northern Nevada. Drilling is underway in both camps along trend from known gold mines.
The founders and Board of West Kirkland have successful gold discovery, development and mine operations experience in both Ontario and Nevada over the past 40 years.
About Rubicon Minerals Corporation
Rubicon Minerals Corporation is an exploration and development company, focused on exploring and developing its high-grade gold discovery at its Phoenix Project in Red Lake, Ontario. Rubicon controls over 100 square miles of prime exploration ground in the prolific Red Lake gold district of Ontario which hosts Goldcorp's high-grade, world class Red Lake Mine.
Qualified Person, Verification, Quality Control and Assurance
Michael G. Allen, P. Geo, is the non-independent qualified person for this news release. He has relevant experience in exploration and development projects in North America over the past twelve years.
West Kirkland Mining Inc.
R. Michael Jones, Michael Allen or Matthew Chandler at (604) 685-8311
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.
Disclaimer for Forward-Looking Information
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. 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. 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, recent market volatility; 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.