VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/01/17 -- West Kirkland Mining Inc. (TSX VENTURE: WKM)(OTCQB: WKLDF) ("West Kirkland" or the "Company") today announces that a Limited Liability Corporation Agreement (the "LLC Agreement") governing the Hasbrouck Gold Project (the "Hasbrouck Project"), located near Tonopah, Nevada has been executed between the Company and Clover Nevada LLC, a Nevada limited liability company and 100% subsidiary of Waterton Precious Metals Fund II Cayman, LP ("Waterton"), who acquired a 25% interest in the Hasbrouck Project in 2015. West Kirkland owns a 75% interest and is the operator of the Hasbrouck Project. The LLC Agreement formally ratifies the relationship between the two owners. Under the terms of the LLC agreement Waterton is required to fund their 25% share of expenditures on the Hasbrouck Project incurred subsequent to September 1, 2016. Waterton has indicated their intention to fund their 25% share of expenditures. However, should Waterton choose not to fund their share of expenditures, their interest will be diluted according to a prescribed formula in the LLC agreement.
The Hasbrouck Gold Project has received all the permits to construct and operate the first phase of the open pit, heap leach gold recovery operation at the Three Hills pit. Work continues on the permitting for the second phase of the project at the larger Hasbrouck pit.
A 2015 Pre-Feasibility Study estimated open pit reserves for the Hasbrouck Project. The mineral resource and reserve estimate was prepared in conformance with NI 43-101 by Mine Development Associates ("MDA"). Proven and Probable reserves (based on 100% of the project) total 45.3 million tons containing 762,000 ounces gold and 10.6 million ounces silver as detailed below:
Hasbrouck Project Reserves June 3, 2015, Mine Development Associates
Grade
(oz Au/
Three Hills K tons ton) K oz Au oz Ag/ton K oz Ag
0.005 opt Proven
Au cut-off - - - - -
Probable 9,653 0.018 175 - -
P&P 9,653 0.018 175 - -
Hasbrouck
Variable Proven 6,242 0.020 127 0.410 2,562
Probable 29,374 0.016 461 0.273 8,007
P&P 35,617 0.017 588 0.297 10,569
Total Hasbrouck
Project
Variable Proven 6,242 0.020 127 0.410 2,562
Probable 39,028 0.016 635 0.205 8,007
P&P 45,270 0.017 762 0.233 10,569
Notes:
1. The estimation and classification of Proven and Probable reserves have
been prepared by Thomas L. Dyer, P.E., of MDA following CIM standards.
2. Reserves are estimated based on $1,225/oz gold and $17.50/oz silver.
3. Cutoff grades used for reserves are: Three Hills 0.005 oz Au/ton,
Hasbrouck Upper Siebert 0.008 oz Au/ton, and Hasbrouck Lower Siebert
0.007 oz Au/ton.
4. 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 reserves.
5. 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 reserves.
6. MDA has reviewed and verified the data disclosed in the above table to
be in conformity with generally accepted CIM "Estimation of Mineral
Resource and Mineral Reserves Best Practices" guidelines in accordance
with NI 43-101.
ABOUT THE HASBROUCK GOLD PROJECT
Hasbrouck Gold Project consists of two all-oxide gold-silver deposits eight kilometers apart. Both deposits will be mined in open pits having low stripping ratios and minimal pre-stripping should the project proceed to production.
West Kirkland's independent consultants, MDA, produced an updated Pre-feasibility Study in September 2016 which is available on SEDAR and at www.wkmining.com. All necessary permits to construct and operate the Three Hills Mine are in hand, and work to obtain permits for the Hasbrouck Mine is ongoing, with submission of a Plan of Operation to the Bureau of Land Management (BLM) targeted for Q4, 2017.
QUALIFIED PERSON
R. Michael Jones, P.Eng, CEO for West Kirkland Mining is a non-independent Qualified Person as defined by NI 43-101. He has reviewed the information contained in this news release and has verified the data by hiring qualified geologists and engineers and has completed a review of the detailed technical information. Mineral reserve information in this news release has been developed and approved by Thomas L. Dyer, P.E., of MDA following CIM standards.
QUALITY ASSURANCE/QUALITY CONTROL
West Kirkland Mining utilizes a well-documented system of inserting blanks and standards into the assay stream and has a strict chain of custody. Assays are completed at independent laboratories which have internal quality assurance and quality control systems and procedures. Assays were performed by ALS Chemex Labs Ltd., by fire assay and ICP methods.
ABOUT WEST KIRKLAND MINING INC.
West Kirkland owns a 75% interest in the Hasbrouck Gold Project in Tonopah, Nevada. A Pre-feasibility Study with construction-level drawings and all federal and state permits for the phase-one Three Hills Mine provides a ready-to-construct project. Drilling for potential expansion is underway. West Kirkland also holds a 60% interest in the open pit heap-leach TUG Gold Project in Utah in joint venture with Newmont.
On behalf of West Kirkland Mining Inc.
R. Michael Jones, Chief Executive Officer
For further information, please see the Company's website at www.wkmining.com or 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, 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.
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.
Contacts:
Investor Relations:
Rob Bruggeman
(416) 884-3556
rbruggeman@wkmining.com
