West Kirkland Announces Surface Gold and Silver Values on Newly Acquired Mineral Rights, Tonopah, Nevada
VANCOUVER, BRITISH COLUMBIA, January 10, 2018 – West Kirkland Mining Inc. (WKM:TSXV) (“West Kirkland”, “WKM” or the “Company”) is pleased to announce a number of significant surface gold and silver assay values on newly acquired 100% controlled mining claims near Tonopah, Nevada. Recently received surface sampling results support historically reported good gold grades and silver veins of interest. The results also outline several targets at surface to be defined for new bulk oxide, open pit gold and silver mineralization. Further assay results from a trenching program are pending and this will shortly be followed by a ten-hole drill program. These new positive results include the Divide target which hosts broad zones of exposed mineralization and has no record of exploration since shafts were sunk there in the 1920’s and the Southerland target which also has no record of previous drilling.
Sandy McVey Chief Operating Officer of WKM said “These new exploration targets are a priority to WKM since the gold and silver mineralization is at surface and is in close proximity to our current 75% owned Reserves at Hasbrouck. We already have a very robust project with 46% IRR and NPV5 of US$ 129 million (100% basis) at current gold prices. Adding any resources to the heap leach profile would greatly enhance the Hasbrouck Gold project” (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).
Table – Surface Chip and Composite Samples – Assays Over 0.5 g/t
|SAMPLE ID||LOCATION||Sample Type||Sample Length (ft)||Au (g/t)||Ag (g/t)|
|121427||HILL OF GOLD||OUTCROP||5'||31.7||17.0|
|121428||HILL OF GOLD||OUTCROP||5'||5.5||9.4|
|121429||HILL OF GOLD||OUTCROP||20' x 30'||1.5||12.9|
|121430||HILL OF GOLD||OUTCROP||5'||0.6||7.5|
|121431||HILL OF GOLD||OUTCROP||5'||4.5||48.7|
|121514||SOUTHERLAND||PROSPECT||5 x 5 x 8'||6.4||8.6|
|Number of Samples||Average g/t||Median g/t||Standard Deviation g/t||Average g/t||Median g/t||Standard Deviation g/t|
|All samples over 0.5 g/t||22||3.8||1.4||6.6||66.2||23.5||92.6|
|Divide samples over 0.5 g/t||15||2.1||1.3||2.0||90.1||49.7||104.1|
Map – WKM Property and Exploration Targets
The Divide Target is located 1.2 km north of the Company’s Hasbrouck open pit Reserves. The area includes at least three historic shafts dating from the 1920’s with one shaft reported as sunk to 100 meters. Mineral title to this area was recently clarified through court action initiated by Tonopah Divide Mining Company (“TDMC”), the lessor of this land, allowing exploration to now take place. Sampling by WKM was performed following the 100% interest lease agreement with TDMC announced by the Company on December 18, 2017. Sampling supports a clear target for drilling with the objective of adding to the Company’s at-surface, open pit resources and reserves for heap leach extraction.
The results of surface sampling are given above and include chip samples from outcrops and composite samples from historic shaft dumps. Results ranging from 0.4 g/t gold to 5.4 g/t gold and 315 g/t silver have been obtained. Sampling supports the reports dating from the 1920’s and indicates potential for bulk open pit gold and silver mineralization exposed at surface in many locations surrounding the historic workings. At the time of the historical shaft work, bulk open pit mining with low cost heap leach extraction did not exist.
The exposed target area with reported gold values is approximately 500 m by 300 m. Trenching has increased the sampled target area and has helped to define the controls on gold and silver mineralization.
Interestingly, if all the chip and composite samples recently taken by the Company from the Divide Area (53 samples) are averaged, the resulting grade value is 0.7 g/t gold and 31.8 g/t silver. If only samples greater than 0.5 g/t Au (15 samples) are used the simple average is 2.1 g/t gold and 90.1 g/t silver. Samples were taken as chips over the widths shown in the table below. Samples from historic shaft dumps were taken as an unbiased composite over the whole dump.
Hill of Gold Target
The Hill of Gold target is located four km north of the Hasbrouck Reserves and was leased by WKM in November 2016. Surface sampling by WKM on the Hill of Gold area includes a sample assaying at 31.7 g/t gold on the central historical vein. Drilling by WKM in 2017 expanded the 1996 historic resource area to the north-west. Mapping and sampling by WKM in late 2017 also found targets near historic shafts located east of the 1996 historic resource and this area is planned to be drilled or trenched in the current exploration program.
Southerland Target Area
This target area is located on a group of six lode claims leased and on land staked by WKM in December 2017 which adjoins both the Hill of Gold lease and the TDMC lease. Located 3.5 km north of the Hasbrouck Reserves, the Company has found no record of modern exploration or drilling there. Chip sampling by WKM geologists along 10 m of a mineralized ridge returned 1.2 g/t gold and 2.3 g/t silver and a prospect pit assayed 6.4 g/t gold and 8.6 g/t silver. Drilling is planned in this area.
About the Hasbrouck Gold Project and West Kirkland
Over the past twelve months, West Kirkland has progressively acquired a 100% interest in 3,700 acres of prospective land between the original two deposits of the Hasbrouck Gold Project. The Hasbrouck Gold Project contains Proven & Probable Reserves of 784,000 gold equivalent oz, (45,270,000 tons at 0.017 Au oz/t for 762,000 contained Au oz; 0.233 Ag oz/t for 10,569,000 contained Ag 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). Waterton Precious Metals Fund II Cayman, LP holds a 25% interest in the Hasbrouck Gold Project and is participating in project expenditures. The first pit is fully permitted and permitting the second pit is ongoing.
The Hasbrouck Gold Project consists of two all-oxide gold-silver deposits eight km 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 recovery by heap leaching. There are no known technical, environmental, economic or social obstacles that would prevent the company from proceeding immediately to construction on the first part of the Hasbrouck Mine plan at Three Hills. Permitting is advanced and is in progress for the second part of the mine plan.
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 [email protected].
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 project approach of the Prefeasibility Study and exploration and all information under the heading “Prefeasibility Study Detail”. Historical mineral title also has risk of an unrecorded claim. 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.
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