The Hasbrouck Project Overview And Resource Estimate

Located between Reno and Las Vegas, near the town of Tonopah, Nevada, the Hasbrouck Project consists of two deposits, Hasbrouck and Three Hills.  The Hasbrouck deposit is eight kilometers south of Tonopah, adjacent to US Highway 95, and Three Hills is two kilometers west of Tonopah.  The two properties cover approximately 12,000 acres on patented and unpatented land. In June 2015, West Kirkland announced the results of an independent pre-feasibility study and revised resource estimate, produced by Mine Development Associates (MDA) of Reno.  On November 27, 2015, the Company announced the receipt of key permits for the Three Hills mine.  On September 1, 2016 the results of an updated pre-feasibility study were announced.

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

West Kirkland purchased 75% of the project on April 23, 2014 for US$20 million. Under the agreement, an additional US$10 million can be offered within 30 months of the initial payment for the remaining 25% interest, held by Clover Nevada LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II;  or, at the discretion of Waterton, the properties will be transferred into a 75% (West Kirkland) 25% (Waterton) Limited Liability Company.

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 projected stripping ratio of 1.1:1; minimal pre-strip
• All oxidized, 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 is a low risk, pro-mining jurisdiction
• Three Hills deposit fully permitted; construction ready
   

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

 

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 PFS 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.  West Kirkland will file an NI 43-101 technical report in support of the technical disclosures on SEDAR 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 here 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 September 1, 2016