West Kirkland Completes Acquisition of Hasbrouck and Three Hills
Properties from Allied Nevada
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 23, 2014) -
Further to its press release of January 27, 2014, West Kirkland
Mining Inc. (TSX-VENTURE:WKM) ("West Kirkland", "WKM" or the
"Company") is pleased to announce that its subsidiary, WK Mining
(USA) Ltd. ("WK Mining (USA)"), has completed its acquisition of an
initial 75% interest in the Hasbrouck and Three Hills properties
(the "Properties") for US$20,000,000 from subsidiaries of Allied
Nevada Corp. (TSX:ANV) ("Allied Nevada" or "ANV").
WK Mining (USA) paid total consideration of US$20,000,000 to
Allied Nevada for a 75% interest in the Properties. The Properties
contain near surface oxidized gold resources and are located close
to infrastructure for potential future mining operations.
Sandy McVey Chief Operating Officer of West Kirkland said,
"After evaluating nearly 250 properties worldwide under strict
criteria we are pleased to have acquired the Properties and
completed this transaction. With the support of our institutional
shareholders West Kirkland can begin the work needed to bring these
assets towards permitting and a construction decision."
On February 24, 2014 West Kirkland filed on SEDAR a National
Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101") compliant technical report on the
Properties (the "Report") titled "Technical Report for the
Hasbrouck Project, Esmeralda County, Nevada, USA". The Report was
filed following the Company's February 24, 2014 news release which
announced a revised resource estimate for the Properties as
follows:
HASBROUCK & THREE HILLS (0.005 opt AuEq
Cutoff) |
Category |
Tons (000 tons) |
Gold opt |
Silver opt |
AuEq opt |
Gold (000 oz) |
Silver (000 oz) |
AuEq (000 oz) |
Measured |
15,777 |
0.015 |
0.286 |
0.020 |
231 |
4,509 |
310 |
Indicated |
62,415 |
0.012 |
0.219 |
0.016 |
731 |
13,640 |
970 |
Measured & Indicated |
78,192 |
0.012 |
0.232 |
0.016 |
962 |
18,149 |
1,279 |
|
|
|
|
|
|
|
|
Inferred |
69,923 |
0.008 |
0.159 |
0.011 |
566 |
11,136 |
761 |
AuEq calculated AuEq= Au + (Ag/57.14) |
|
Notes:
- CIM definitions are followed for classification of Mineral
Resources
- Mineral Resources are estimated using a gold price of US$1,200
per ounce and a silver price of US$21 per ounce
- Totals may not represent the sum of the parts due to
rounding.
- The Mineral Resources have been prepared by Scott E. Wilson 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 or any part of
the mineral resource will be converted into mineral reserve.
The Report, dated effective February 21, 2014, was prepared in
conformance with NI 43-101 by Mr. Scott E. Wilson, AIPG Certified
Professional Geologist, who is WKM's Independent Qualified Person
as defined under NI 43-101. A copy of the Report can be found at
www.sedar.com and on the Company's website.
Acquisition Details
WK Mining (USA) has finalized and executed a Purchase and Sale
Agreement (the "PSA") with Allied Nevada to acquire the Properties.
WK Mining (USA) has paid both the deposit and initial payment with
total consideration having been paid to Allied Nevada being
US$20,000,000. Title to the Properties has been transferred to WK
Mining (USA).
Pursuant to the PSA, WK Mining (USA) has the option of making an
additional US$10,000,000 payment (the "Final Payment") on or before
October 23, 2016 (the "Final Payment Deadline"). If WK Mining (USA)
pays the Final Payment to ANV in accordance with the terms and
conditions of the PSA, it will acquire the remaining 25% interest
in the Properties and own a 100% interest in the Properties.
If WK Mining (USA) does not make the Final Payment to ANV on or
before the Final Payment Deadline, or if WK Mining (USA) offers
payment and ANV chooses to decline the Final Payment, the
Properties shall be transferred into a joint venture (the "Joint
Venture") with WK Mining (USA) retaining a 75% interest in the
Joint Venture and ANV retaining 25% interest in the Joint Venture.
Upon entering the Joint Venture both parties will be responsible
for their share of the costs on a pro rata basis with Allied
Nevada's share of the costs accruing and payable in full 30 months
after the formation of the joint venture.
Go Forward Plans
WK Mining (USA) intends to advance the Properties to a
Pre-Feasibility study and initiate permitting. As part of this
work, WK Mining (USA) will complete exploration and condemnation
drilling, geotechnical and hydrological investigations and
metallurgical studies on the Properties.
Qualified Persons
Mr. Scott E. Wilson, AIPG Certified Professional Geologist, is
WKM's Independent Qualified Person as defined under NI 43-101. He
has recently visited the Properties and has read and approved the
technical information in this news release. Mr. Wilson has reviewed
and verified the data disclosed in this news release to be in
conformity with generally accepted CIM "Estimation of Mineral
Resource and Mineral Reserves Best Practices" guidelines and in
accordance with NI 43-101.
Michael G. Allen, Vice President of Exploration for WKM, and a
Qualified Person as defined by NI 43-101, has reviewed the
information contained in this news release. He is the
non-independent qualified person for this new release and has
verified the data.
About West Kirkland Mining Inc.
West Kirkland was formed in 2010 to focus on gold exploration
along major geological trends in North America. The Company has
consolidated significant mineral rights positions within the Long
Canyon Trend of Nevada/Utah. The founders and Board members of West
Kirkland have successful experience in gold discovery, mine
development and mine operations in Nevada and other gold producing
jurisdictions in North America.
For further information, please see contact us by email at
info@wkmining.com.
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, all statements regarding the Final Payment, forming a
workable joint venture with Allied Nevada, advancing the Properties
to a Pre-Feasibility study and initiating permitting and completing
exploration and condemnation drilling, geotechnical and
hydrological investigations and metallurgical studies on the
Properties. Although WKM believes that such timing as set out in
this press release is reasonable, it can give no assurance that
such expectations will prove to be correct. 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; the results of the Company's due diligence evaluations
with respect to the Properties; developments with respect to Allied
Nevada or the Properties; 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.
Cautionary Note to U.S. Investors Regarding the Use of Mining
Terms
This press release has been prepared in accordance with the
securities laws in effect in Canada, which differ from the
requirements of U.S. securities laws. Unless otherwise indicated,
all resource and reserve estimates included in this press release
have been prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian Institute of Mining, Metallurgy, and Petroleum Definition
Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a
rule developed by the Canadian Securities Administrators which
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the U.S. Securities and Exchange Commission
(the "SEC"), and resource and reserve information contained therein
may not be comparable to similar information disclosed by U.S.
companies. In particular, and without limiting the generality of
the foregoing, the term "resource" does not equate to the term
"reserves". Under U.S. standards, mineralization may not be
classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. The
SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves" by U.S. standards in
documents filed with the SEC. U.S. investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into reserves. U.S. investors should also
understand that "inferred mineral resources" have a great amount of
uncertainty as to their existence and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or
any part of an "inferred mineral resource" will ever be upgraded to
a higher category. Under Canadian rules, estimated "inferred
mineral resources" may not form the basis of feasibility or
pre-feasibility studies except in rare cases. Investors are
cautioned not to assume that all or any part of an "inferred
mineral resource" exists or is economically or legally mineable.
Disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in-place tonnage and
grade without reference to unit measures. The requirements of NI
43-101 for identification of "reserves" are also not the same as
those of the SEC, and reserves reported by the Company in
compliance with NI 43-101 may not qualify as "reserves" under SEC
standards. In addition, under SEC standards, a company may only be
identified as "development" stage if it has established "reserves"
by SEC standards and is engaged in the preparation of such reserves
for extraction. Accordingly, information concerning mineral
deposits set forth in this press release may not be comparable with
information made public by companies that report in accordance with
U.S. standards.
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.
West Kirkland Mining Inc.R. Michael Jones(604) 685-8311West
Kirkland Mining Inc.Knox Henderson(604)
685-8311info@wkmining.com
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