The Hasbrouck Project Overview

In 2014 West Kirkland acquired a 75% interest in the Hasbrouck Gold Project located on Highway 95 between Reno and Las Vegas, Nevada. The remaining 25% interest is held by Clover Nevada LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II. Waterton are a participating partner in advancing the project.

West Kirkland's Nevada properties with surrounding gold mines and deposits
West Kirkland's Nevada properties with surrounding gold mines and deposits
(Click to Enlarge)

At the time of purchase, the Hasbrouck Project consisted of 12,000 acres hosting two oxide gold-silver deposits, Hasbrouck, and eight kilometers to the north, Three Hills. By the end of 2018, West Kirkland had acquired an additional contiguous 3,700 acres, including the historic Tonopah Divide Mine and the Hill of Gold deposit.

The Hasbrouck and Three Hills deposits, Esmeralda County, Nevada
The Hasbrouck and Three Hills deposits, Esmeralda County, Nevada
(Click to enlarge)

Geology

The Hasbrouck and Three Hills deposits are oxidized, low-sulfidation, epithermal vein systems that are suitable for open pit, heap leach mining. Mineralization is at-surface and near-surface which positively impacts the economics of the deposits. Both deposits have been extensively drilled by previous operators, including Allied Nevada, with over 600 bore holes in the two deposits.

Key advantages of the Hasbrouck Project include:

  • Resource (see table below):*
    - 143,000 gold (Au) ounces Measured
    - 784,000 Au ounces Indicated
    - 136,000 Au ounces Inferred
  • Low 1:1 stripping ratio; minimal pre-strip
  • All oxidized, all above water table, suitable for open-pit heap leach mining
  • 81.5% Au recovery at Three Hills, run-of-mine
  • 74% Au recovery at Hasbrouck with three-stage crushing
  • Existing infrastructure; roads, water, power, and near-by town
  • Nevada - a low risk, pro-mining jurisdiction
  • Three Hills deposit fully permitted; construction ready


Hasbrouck and Three Hills Resource Estimate

Resources are reported inclusive of Reserves.

Hasbrouck Deposit Reported Mineral Resources* November 3, 2014,
Mine Development Associates (0.006oz AuEq/ton Cutoff)

Class Tons oz Au/ton oz Au oz Ag/ton oz Ag
Measured 8,261,000 0.017 143,000 0.357 2,949,000
Indicated 45,924,000 0.013 595,000 0.243 11,147,000
 
M+I 54,185,000 0.014 738,000 0.26 14,096,000
Inferred 11,772,000 0.009 104,000 0.191 2,249,000

Notes: oz AuEq/ton = oz Au/ton + (oz Ag/ton x 0.000417)

Three Hills Reported Mineral Resources* August 4, 2014,
Mine Development Associates (0.005oz Au/ton Cutoff)

Class Tons oz Au/ton oz Au
Indicated 10,897,000 0.017 189,000
Inferred 2,568,000 0.013 32,000

Notes:
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.

Authors and Qualified Persons Statement

The 2016 pre-feasibility study was prepared in conformance with NI 43-101 by Mine Development Associates (MDA).  Technical work, analysis and findings were completed 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 relevant to the portion of the 2016 PFS for which they are responsible. MDA has reviewed and verified the data conform to CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and to NI 43-101. 

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 herein and has verified the data.

Sample preparation, analyses and security

It is MDA’s opinion that the sampling, assaying, and security procedures used at Three Hills and Hasbrouck follow industry standard procedures, and are adequate for the estimation of the current mineral resources and reserves.

Data verification

MDA completed audits of the database, performed a site visit, reviewed QAQC data and confirmed historic assays.  After performing their review, they consider the assay data to be adequate for the estimation of the current mineral resources and reserves.

Updated February 2, 2018