West Kirkland Reports on Exploration at Hasbrouck Gold Project and Gold Mountain, Tonopah, Nevada
VANCOUVER, BRITISH COLUMBIA, February 21, 2018 – West Kirkland Mining Inc. (WKM:TSXV) (“West Kirkland”, “WKM” or the “Company”) is pleased to provide an update on current exploration work at the Hasbrouck Gold Project, Nevada. New WKM sampling has been completed involving 325 surface samples and 6,500 feet of exposed continuous chip samples, with assays pending. The sampling was targeted to extend historic gold values which were better than Hasbrouck grades over a distance of 1,608 feet at surface. (See table below)
Ongoing exploration work is directed at identifying and testing targets at or near surface with the potential for increasing the company’s existing gold Resources and Reserves within trucking distance of the Company’s planned and permitted heap leach facilities at the Three Hills and Hasbrouck Mines. The September 14, 2016 Updated Preliminary Feasibility Study (“PFS”) for The Hasbrouck and Three Hills Gold-Silver Project estimates Proven & Probable Reserves of 784,000 gold equivalent oz, (45,270,000 tons at 0.017 Au oz/ton for 762,000 contained Au oz; 0.233 Ag oz/ton for 10,569,000 contained Ag ounces – gold equivalent ounces derived from metal prices of 18.21 for silver and $1,275 for gold, and recoveries of 75.7% for gold and 11% for silver).
“We are very excited about the potential for new at-surface gold zones within sight of our Reserves that could be processed at the facilities we have designed and permitted for the Hasbrouck Gold Project” said Sandy McVey COO of West Kirkland Mining.
GOLD MOUNTAIN TARGET AREA
An extensive mapping and sampling program is in progress by WKM where surface gold values have been found in historic road-cut sampling and drill holes. Surface investigations are currently focused on Gold Mountain, 1.6 km east of the Hasbrouck deposit. The new sampling has identified well-altered and silicified beds above or below the sampled road-cuts.
Mapping by WKM has found previously unrecorded and unsampled sub-horizontal zones of strong silicification in the Siebert volcanic formation, which is the host of the Hasbrouck deposit. Previous flat-driven road-cuts sampled during previous work have provided continuous chip gold samples as shown on the map and table below. WKM is working to expand these zones:
Historic Road-cut Continuous 20-foot Chip Sample Sections
|Surface Samples||Length||Gold (g/t)||Silver (g/t)||Location|
|Road-cut 1||441’||0.87||2.4||NE Side (26 samples)|
|Road-cut 2||917’||0.65||13.2||SW Side (47 samples)|
|Road-cut 3||250’||0.68||22.5||East-High (16 samples)|
|TOTAL||1608’||Avg: 0.717||Avg: 11.7||89 samples|
Historic drilling has provided some indication of the potential thickness of the flat zones that WKM is working to expand with further sampling:
Historic Drill Holes in the Area of the Sub-horizontal Road-cut Targets
|Drill Hole||Interval (ft)||Below Collar (ft)||Gold (g/t)||Silver (g/t)|
The Company is pleased to report the submission to the Bureau of Land Management (BLM) in late 2017 of a Plan of Operation for the Hasbrouck Mine, being the second phase of the project. The company has responded to BLM comments which were brief and manageable, and the BLM is now finalizing their review of the Plan. The Company believes it probable that the BLM will decide to permit the Hasbrouck Mine under the relatively straight-forward Environmental Assessment (EA) as they did at the Three Hills Mine rather than under the lengthier Environmental Impact Statement (EIS). The EA process would be approximately 2 years shorter and would cost approximately US$2m less than the EIS process that had been assumed in the 2016 Pre-feasibility Study. Definitive feedback from the BLM on the Hasbrouck Mine permitting path is expected within the next 30 days. Hasbrouck Mine permitting is not on the project’s critical path since the earlier pit at Three Hills Mine is already fully permitted.
FIRST PHASE REGIONAL DRILL TESTING
The company completed 10 reverse circulation holes for a total of 4,000 feet as a first test of targets from earlier work in areas not in the area of the current surface work. Gold values were found in all the targeted structures but not in thicknesses attractive for open pit near-surface resources. The company remains focussed on near-term open pit resources to add to the profile quickly for the Hasbrouck Project.
The current mapping and sampling program combined with a 3D model of all of the previous work is planned to generate detailed targets for short drill holes where gold values start at or very near surface. The budget and scale of this program will be developed as sampling results from the recent WKM surface work becomes available in the weeks ahead.
ABOUT THE HASBROUCK GOLD PROJECT AND WEST KIRKLAND
Over the past twelve months, West Kirkland has progressively acquired a 100% interest in an additional 3,700 acres of prospective land lying between the original two deposits forming the Hasbrouck Gold Project. Drilling results and new targets reported herein are on this newly-acquired land.
The original Hasbrouck Gold Project consists of two gold-silver deposits eight km apart, near the Town of Tonopah in southern Nevada. Both deposits are planned to be open-pit mined at 1:1 stripping ratios with minimal pre-stripping and with 76% gold recovery from the oxide ore by heap leaching. There are no known technical, environmental, economic or social obstacles that would prevent the company from proceeding to construction on the first part of the Hasbrouck Project, being the Three Hills Mine. Work on permitting the second part of the project, being the Hasbrouck Mine, is well-advanced.
The Hasbrouck Gold Project is estimated to contain Proven & Probable Reserves of 784,000 gold equivalent oz, (45,270,000 tons at 0.017 Au oz/t for 762,000 contained Au oz; 0.233 Ag oz/t for 10,569,000 contained Ag ounces), NPV5 Post Tax (US$1,275/oz Au) estimated at US$120 million, IRR 43% (Technical Report and Updated Preliminary Feasibility Study for The Hasbrouck and Three Hills Gold-Silver Project, Esmeralda County, Nevada, USA, Report Date: September 14, 2016). Waterton Precious Metals Fund II Cayman, LP holds a 25% interest in the Hasbrouck Gold Project and is participating in project expenditures. The first pit is fully permitted and permitting the second pit is ongoing.
R. Michael Jones P.Eng, CEO of West Kirkland Mining, is a non-independent Qualified Person as defined by NI 43-101. He has reviewed the information contained in this news release and has verified the data by hiring qualified geologists and engineers and has completed a review of the detailed technical information. Mineral Reserve information in this news release relating to the Hasbrouck Gold Project has been developed and approved by Thomas L. Dyer, P.E., of MDA following CIM standards.
QUALITY ASSURANCE/QUALITY CONTROL
West Kirkland Mining utilizes a well-documented system of inserting blanks and standards into the assay stream and has a strict chain of custody for samples taken by WKM. Assays by WKM are completed at independent laboratories which have internal quality assurance and quality control systems and procedures. Assays were performed by ALS Chemex Labs Ltd., by fire assay and ICP methods.
The historic work was completed by previous property explorers and developers and provided to WKM in digital form in an extensive database. The surface assays on road-cuts and grab samples were performed at ALS labs by standard fire assays with ICP finish methods. Drill hole assay data for the 1995 and 1990 programs were completed at Barringer labs, GSI labs, and labs respectively with fire assay methods and ICP or AA finish. The 1980 holes do not have assay lab data available, but the values were part of historic production mine work at the time and are consistent with the ALS surface data nearby. Although the work was completed prior to NI-43101 and was not under WKM control and chain of custody, the work was completed by qualified professional geologists and laboratories utilizing standard methods. The results of various dates and operators provide similar results to the surface sample assay work by ALS labs. For the purpose of general exploration target generation, the Non-Independent QP has reviewed the data in detail and has accepted it as verified for general indicative exploration targeting. The data was verified by ensuring a reasonable mineralization type and assay tenor comparison, in the same area, between multiple project exploration companies and labs, along with a review and acceptance of the quality of the work reported. Further confirmation assays under WKM procedures would be required for this data to be used in Resource calculations.
On behalf of West Kirkland Mining Inc.
“R. Michael Jones”
Chief Executive Officer
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 exploration and project approach of a Prefeasibility Study. Historical mineral title also has risk of an unrecorded claim. 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, 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.
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