West Kirkland Commences Exploration and Prefeasibility Study for
Hasbrouck Project, Nevada
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 3, 2014) - West
Kirkland Mining Inc. (TSX-VENTURE:WKM) ("West Kirkland, WKM" or the
"Company") announces today that it has completed a thorough project
plan on its recently acquired Hasbrouck and Three Hills properties
(the "Hasbrouck Project") and will immediately start exploration
and initiate a prefeasibility study (the "Prefeasibility
Study").
West Kirkland recently raised $33.1 million in related
financings and acquired a 75% interest in the Hasbrouck Project for
a purchase price of US$20 million. Following the announcement of
the Hasbrouck Project acquisition agreement in January, 2014, West
Kirkland announced a mineral resource estimate increase of
approximately 10%, which incorporated the results of subsequent
drilling completed since the most recent mineral resource estimate
disclosed in 2012 by the property vendor (see news release dated
February 24, 2014) and the completion of a technical report dated
February 21, 2014 titled "Technical Report for the Hasbrouck
Project Esmeralda County, Nevada, USA, West Kirkland Mining Inc."
(the "Technical Report") authored by Scott E. Wilson, C.P.G., which
has been filed under the Company profile on SEDAR at
www.sedar.com.
The Company has previously stated that in keeping with the
recommendations of the Technical Report, it would complete a
preliminary economic assessment of the Hasbrouck Project. However,
the Company has recently completed a detailed review of the three
dimensional deposit models, incorporating the recent mineral
resource estimate increase referred to above, and conducted
internal engineering, planning and interaction with the community
and permit regulatory bodies, and now has sufficient confidence to
proceed directly to the prefeasibility stage on the Three Hills and
Hasbrouck surface oxide gold deposits.
The Hasbrouck Project includes two all-oxide deposits with
at-surface and near-surface mineralization having minimal pre-strip
and a low overall stripping ratio. Both deposits are well-drilled
with over 600 bore holes. In addition, extensive metallurgical test
work has been done indicating approximately 60% recovery at
Hasbrouck and 80% recovery at Three Hills by heap leaching with
moderate cyanide and lime consumption.
Both deposits have easy access from the state highway system and
grid power is available nearby. The deposits are above the water
table which simplifies operations, permitting and closure. The
expected project approach to the Prefeasibility Study will be to
look at two open pits with low-strip ratios and no pre-strips with
heap leach extraction. The initial design concepts will focus on an
initial operation at Three-Hills with a lower scale and
environmental profile. The second phase of the design concept will
then focus on Hasbrouck which has a longer potential permit time
line. Initial feedback on this two-staged approach from local
interests and state and federal regulators has been positive.
The new deposit model completed and announced by WKM has
provided obvious exploration targets, including targets immediately
adjacent to the Three Hills deposit and the Hasbrouck deposit. A
2,000 meter drilling program is expected to commence in July, 2014.
The drilling program will involve resource infill, and step-outs,
groundwater characterization, metallurgical samples, condemnation
holes for infrastructure areas, water source and geotechnical
studies.
Prefeasibility Study
Detail
West Kirkland intends to complete the Prefeasibility Study by Q1
of 2015 using a team of leading, Nevada-based consultants,
including:
- Mine Development Associates - resources, mine design and report
production
- HC Osborne & Associates - metallurgy and process
consultant
- Kappes Cassiday & Associates - metallurgy and process
design
- NewFields - heap leach design and engineering
- McClelland Labs - laboratory analyses and assays
- N.A. Degerstrom - mine planning reviewer
Resource
The combined Hasbrouck and Three Hills deposits includes
1,279,900 gold equivalent (AuEq) ounces in the Measured and
Indicated category (78.2 million tons at 0.012 opt Au and 0.232 opt
Ag for 0.016 opt AuEq) and 761,000 ounces AuEq in the Inferred
Category (69.9 million tons at 0.008 opt Au and 0.159 Ag for 0.011
opt AuEq) using a 0.005 opt AuEq cut-off. (See Technical Report
filed on SEDAR. Gold equivalent ounces are calculated as follows:
AuEq =Au+Ag/57.14).*
Exploration
Exploration drilling will be completed by reverse circulation
methods and be focused primarily on areas immediately adjacent to
the Three Hills and Hasbrouck deposits on specific mapped and
modelled structures associated with the control of
mineralization.
Permitting
Pre-application meetings with the Bureau of Land Management
(BLM) and the Nevada Division of Environmental Protection (NDEP)
have commenced the formal permitting process. Surveys required by
the BLM include sensitive species and cultural resources and are
currently being conducted. Rock characterization studies are
required by NDEP for a Water Pollution Control Permit. Permitting
work will initially focus on the Three Hills deposit which has a
small footprint and short life of mine (approximately two years).
These factors may result in a simpler and shorter permitting
process.
Budget
The Prefeasibility Study, engineering drilling, permitting work
and the immediate exploration program is budgeted to cost $5
million, in line with previous plans and milestones.
Qualified Persons
* Mr. Scott E. Wilson, AIPG Certified Professional Geologist, is
WKM's Independent Qualified Person as defined under NI 43-101. 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.
Sandy McVey, Chief Operating Officer for West Kirkland, and a
non-independent Qualified Person as defined by NI 43-101, has
reviewed the information contained in this news 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 known
gold trends of Nevada and Utah, including the recently acquired the
Hasbrouck and Three Hills properties in southwestern Nevada. 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.
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 completion of the
Prefeasibility Study, the project approach of the Prefeasibility
Study and exploration and all information under the heading
"Prefeasibility Study Detail", including the Prefeasibility Study
budget. Although West Kirkland believes that such timing and
expenses as set out in this press release are reasonable, it can
give no assurance that such expectations and estimates 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, 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.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) 685-8311(604) 484-4710
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