West Kirkland Mining Leases Mining Patents and Mineral Claims from Tonopah Divide Mining Company
VANCOUVER, British Columbia, Dec. 18, 2017 (GLOBE NEWSWIRE) -- West Kirkland Mining Inc. (TSX-V:WKM) (“West Kirkland”, “WKM” or the “Company”) has entered into a lease agreement with historic Tonopah Divide Mining Company (“TDMC”) for a 100% working interest on mining patents and mineral claims covering 2,500 acres adjacent to the Company’s Hasbrouck and Three Hills Project near Tonopah, Nevada.
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The lease of the TDMC ground combined with WKM’s existing land package is a logical consolidation of projects. Total WKM controlled mineral rights at Tonopah now cover 17,100 acres, including multiple areas of previous gold production. The TDMC lease includes important areas of former open pit and underground gold production, some of which have no record of exploration since the 1920’s. TDMC was incorporated in 1908 and has carefully consolidated and confirmed title over the lease area in the past several decades, including important and careful legal historic title work in the past two years. The TDMC ground and the Company’s recent staking creates a contiguous block stretching from the Hasbrouck open pit area to the Hill of Gold property recently optioned by the Company.
“We are very pleased, following an improved understanding of the camp from work we have done on our growing land position, to formally consolidate this part of the historic Tonopah Divide Mining Camp with our own deposits. The opportunity for the first known modern drilling in areas of gold and silver mineralization hosting surface workings, shafts and known gold veins is truly exciting. Adding this potential to the Company’s existing 927,000 Measured and Indicated Resource gold ounces (957,000 gold equivalent ounces) provides an opportunity build the regional resource base beyond the important 1 million ounces of gold threshold,” said R. Michael Jones CEO of West Kirkland Mining.
The terms of the Lease for a 100% working interest in the property with TDMC includes the payment of an optional annual amount of US$75,000 in advance royalties, an optional US$100,000 annual work requirement from 2018 to 2022, increasing to US$200,000 per year from 2023 to 2028. TDMC is to receive approximately 3% NSR royalty from any production from the property, less any underlying royalty payments and the advance royalties already paid.
The current Hasbrouck and Three Hills Project consists of two planned open pits with heap leach facilities based on pre-feasibility level work and construction-level drawings. Construction and operation are fully permitted at both federal and state levels for the first pit and heap leach facility. The after-tax project NPV5 at US$1,275 /oz gold is US$120 million and a 43% IRR (784,000 AuEq ounces at 0.6 g/t Au; see “Technical Report and Updated Preliminary Feasibility Study: Hasbrouck and Three Hills Gold-Silver Project, Esmeralda County, Nevada,” dated September 14, 2016 available on SEDAR and at www.wkmining.com).
Map showing the Company’s previous and newly acquired land holdings:
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/c26d3cf2-ad25-4bee-94fd-3de427f86495
The objective of the lease consolidation is to add open pit oxide heap leachable resources to the Company’s profile within easy trucking distance to the permitted recovery facilities. The targets are all located within 8 kilometers (5 miles) of the planned Hasbrouck or 3 Hills leach pads areas.
The Company recently completed a detailed surface mapping and sampling program on and around its 100% held Hill of Gold Property, which lies between the Company’s Three Hills and Hasbrouck deposits, as well as on land lying between Hill of Gold and the Hasbrouck deposit. Sample assay results obtained in late 2017 will shortly be compiled with further sampling being completed now on the new TDMC Lease area. This new sample information will inform a regional exploration plan including drilling starting in January 2018 directed at the targets shown on the map above.
About the Hasbrouck Gold Project
West Kirkland holds a 75% interest in the Hasbrouck Project which contains Proven and Probable Reserves of 784,000 gold equivalent oz, (45,270,000 tons at 0.017 gold oz/t containing 762,000 gold ounces, and 0.233 silver oz/t containing 10,569,000 silver ounces) (Technical Report and Updated Preliminary Feasibility Study for The Hasbrouck and Three Hills Gold-Silver Project, Esmeralda County, Nevada, USA, Report Date: September 14, 2016). A 25% interest is held by Waterton Precious Metals Fund II Cayman, LP, which is participating in project expenditures. The first pit is fully permitted for the Hasbrouck Project and the permitting of the second pit is ongoing with detailed engineering completed.
The Hasbrouck Gold Project consists of two all-oxide gold-silver deposits eight kilometers apart, near the Town of Tonopah in southern Nevada. Both deposits can be open-pit mined at 1:1 stripping ratios, with minimal pre-stripping and with 76% gold recovered by heap leaching. There are no known technical, environmental, economic, or social obstacles that would prevent the company from proceeding immediately to construction.
About West Kirkland Mining Inc.
West Kirkland owns a 75% interest in the Hasbrouck Gold Project in Tonopah, Nevada. The remaining 25% is owned by Clover Nevada LLC, a Nevada limited LLC and 100% subsidiary of Waterton Precious Metals Fund II Cayman, LP. West Kirkland also controls mineral rights 100% in the Tonopah area and owns a 1.1% NSR royalty over the Hasbrouck and Three Hills Project. West Kirkland plans to add value to its projects through adding to gold reserves by exploration and systematically advancing the engineering and permitting of the Reserves.
Qualified Person
R. Michael Jones P.Eng, CEO of 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 relating to the Hasbrouck Gold Project 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.
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.