KB / TUG
TUG Deposit, Resource Estimate
In September of 2013 a new Mineral Resource and a Preliminary Economic Assessment (PEA) was published forWest Kirkland’s TUG Project, Utah. To meet a 60% earn-in requirement with its partner, Newmont Mining Corp., West Kirkland has spent over $4 million at TUG. Subject to Newmont’s confirmation of the earn-in expenditures, the two companies are forming a joint venture to advance the project.
The following details on the TUG project are taken directly from the PEA:
The resource estimate and PEA were prepared in conformance with NI 43-101 by Roscoe Postle Associates USA Ltd. (RPA). The study predicts a 26% after-tax IRR and $9 million NPV(8%) at $1,525 gold/ $28 silver, and an in-pit indicated resource of 114,000 ounces gold plus 5.4 million ounces silver with an inferred resource of 3,000 ounces gold plus 298,000 ounces silver. Initial capital cost is projected to be $24 million. Note that all funds are stated in US$.
Highlights of the PEA
RPA’s economic assessment focused on the most economical part of the Mineral Resource, which is based on heap leach processing as outlined in Table 4. The processing method selected for the PEA was determined by comparing the milling and heap leaching cash flow analyses.
Note: Mineral Resources do not have any demonstrated economic viability and resources may never be upgraded to a higher category or be upgraded to reserves.
NOTE: The economic analysis is based in part on Inferred Resources and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them or to be categorized as Mineral Reserves. There is no certainty that economic forecasts on which this Preliminary Economic Assessment is based will be realized. The complete PEA technical report on the TUG property will be filed on SEDAR within 45 days of this release.
TUG Project Opportunities
RPA has identified several opportunities which have the potential to improve the TUG Project. These include:
TUG Conceptual Surface Layout
Mineral Resource Estimate
RPA’s Mineral Resource estimate is based on an open pit mining scenario. A potentially minable Mineral Resource is reported at a $17/tonne net smelter return (NSR) cut-off within a preliminary Whittle pit shell.
Background to the TUG Property
The TUG property comprises an outcropping gold and silver deposit in the Long Canyon Trend, north-west Utah. The deposit has structural features similar to those at Newmont’s nearby 2.6 million ounce Long Canyon property. TUG was discovered and extensively drilled in the 1980s and 1990s by various owners including Noranda and Western States Minerals Corporation. West Kirkland optioned TUG in 2010 from Fronteer as part of a large land package in the Long Canyon Trend.
West Kirkland holds two large scale option positions in the Long Canyon Trend of Nevada and Utah from Newmont and Rubicon Minerals. Included in the Newmont Option agreement is the adjacent KB Property which features a historic mineral resource containing 40,000 ounces of gold in 1.73 million tonnes grading 0.72 g/t Au with a 0.34 g/t Au cut-off. The reader is cautioned that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the issuer is not treating the historical estimate as current mineral resources. Additional work is required to make this estimate current. The Company intends to assess the KB deposit to determine its impact on the economic potential of the TUG project. The 12 Mile and Bandito drill targets held within the Rubicon option agreement area intersected oxide gold mineralization near surface similar to the TUG deposit and warrant further exploration. Surface exploration within the Rubicon option area is ongoing and further drilling will be considered as part of an overall TUG deposit and Long Canyon strategy that the Company has planned for the months ahead.
Authors and Qualified Persons Statement
*The PEA and Mineral Resource Estimate were prepared in conformance with NI 43-101 by Roscoe Postle Associates USA Ltd (RPA). The report, titled “Technical Report on the Tecoma Utah Gold Project Utah, USA” was prepared September 13, 2013 by Stuart Collins, P.E., Kathy Altman, P.E., Ph.D., and Luke Evans, P.Eng, each an independent "Qualified Person" under NI 43-101. Input for the PEA was provided by Newfields (civil and heap leach), Gault Group (environmental & permitting), and Hansen Allen & Luce (hydrogeology).
Michael G. Allen, Vice President of Exploration for West Kirkland, and a qualified person as defined by NI 43-101, has reviewed and approved the technical information stated above other than the inferred mineral resource estimate, including but not limited to the plans of the Company. He is the non-independent qualified person for the purpose of the information contained on this web page.
Updated February 20, 2014
|Home | Company | Projects | Investors | News Releases | Media | Corporate Responsibility | Contact Us|
Copyright © 2011 West Kirkland Mining Inc. All rights reserved.