West Kirkland Identifies New Target at Gold Mountain Using Hasbrouck Deposit Model, Tonopah, Nevada
VANCOUVER, BRITISH COLUMBIA, January 29, 2018 – West Kirkland Mining Inc. (WKM:TSXV) (“West Kirkland”, “WKM” or the “Company”) is pleased to announce a significant new gold and silver target, at or near surface, on the newly acquired 100% controlled Gold Mountain mining claims near Tonopah, Nevada. From peak to peak, Gold Mountain is located only 1.6 km east of Hasbrouck hill. The objective of WKM’s exploration program in the district is to add gold resources and reserves near the Company’s existing reserves that are within easy trucking distance to the Company’s planned and permitted heap leach processing facilities.
The Gold Mountain target was identified by analyzing historic samples along existing, long road cuts with assay values at or better than Hasbrouck reserve grades. Through the December, 2017 lease agreement with Tonopah Divide Mining Company, WKM acquired an extensive historic exploration database. Utilizing the acquired data base along with field samples and observations, WKM mapped the bedding of known structures and completed a three-dimensional geological model for the Gold Mountain area of property.
The Hasbrouck Technical Report summarizes one of the key ore controls at Hasbrouck as follows: “Stratigraphic control, whereby the porous volcaniclastic units are preferentially mineralized, is prevalent throughout the deposit, but is especially evident in many of the moderate-grade zones…” Comparison of WKM’s three-dimensional model for Gold Mountain to the flat bedded controls for part of the known reserves on the adjacent Hasbrouck hill demonstrated the potential for a relatively flat lying, thick and near surface deposit at Gold Mountain.
WKM’s analysis also determined that some historic drilling did test the flat lying, gold bearing zone that now forms the target identified by WKM. At the time of the historic road cut sampling and drilling in the 1980’s and 1990’s, the flat bedded host rock control of gold mineralization in the area was not well recognized or understood. Gold prices were also lower, causing exploration at the time to be focussed on high grade targets.
From the database WKM found 1608 feet (490 meters) of road cuts into Gold Mountain that have the gold and silver assay values reported below. A series of 20 foot (7m) continuous samples were taken along the roads. Results are shown in the table below.
Historic Road Cut Continuous 20 foot Chip Sample Sections
|Surface Samples||Interval (ft)||Gold (g/t)||Silver g/t||Location|
|Road Cut 1||441||0.87||2.4||NE Side (26 samples)|
|Road Cut 2||917||0.65||13.2||SW Side (47 samples)|
|Road Cut 3||250||0.68||22.5||East-High (16 samples)|
The mineralized road cuts have similar grades to the Hasbrouck Reserves (0.583 g/tonne Au and 7.9 g/t Ag) located approximately 6,500 feet (2,000 meters) to the west. The road cuts with mineralization are close to the flat dipping contact of two mapped units. The mineralized road cuts cover a large area. Three approximately 250 foot sections of road cut were sampled with low values and are interpreted as being off the layered contact. Some mapped and well mineralized road cuts were not sampled and WKM plans to sample these. Detailed mapping and further sampling will be required to delineate and expand the target.
Limited historic drilling under the road cuts described above has shown gold and silver values at or near surface with results in the table below. Historic deep drill cuts across the mountain are interpreted to have been collared in or under the new WKM identified flat bedded contact. The historic drilling was targeting different, higher grade structures below the flat bedded layers now identified by WKM. Areas above the historic road cuts are observed to host the new flat bedded target and are open for new road cut sampling/trenching and further drilling. The historic drill holes that have been identified with intercepts of the new WKM flat bedded target also returned similar grades to the Hasbrouck Reserves. See table below.
Historic Drill Holes in the Area of the Flat Road Cut Targets
|Drillhole||Interval (ft)||Gold (g/t)||Silver g/t||From (ft)|
The interpretation of stratigraphic control at the nearby Hasbrouck deposit is supportive of WKM’s new interpretation at Gold Mountain. The overall variable dip and true thickness of the flat target, near surface, cannot yet be estimated. Further road cuts higher and lower on the hill along with short vertical holes through exposed mineralization will be required to estimate the continuity and scale of the new flat bedded target.
A historic, north east trending, near vertical narrow vein at Gold Mountain, with small scale production from portals on multiple levels, may have acted as a feeder to the flat bedded target. This vertical zone has been tested by one or two historic holes, which returned low values. A series of high grade grab samples along this interpreted vein for 280 meters of strike length trending north east outlines this target. Values range from 0.29 g/t gold to 50 g/t, with 9 values from 10-20 g/t tonne gold. The width of this vein is unclear. The intersection of the high-grade vein and the flat bedded target has not been drilled or sampled and this intersection area is also targeted for new road cuts/trenches and surface sampling.
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 new target reported herein is on 100% leased land.
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, NPV5 Post Tax ($1,275/oz Au) estimated at $120M, IRR 43% (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 for samples taken by WKM. Assays by WKM 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.
The historic work was completed by previous property explorers and developers and provided to WKM in digital form in an extensive database. The surface assays on road cuts and grab samples were performed at ALS labs by standard fire assays with ICP finish methods. Drill hole assay data for the 1995 and 1990 programs were completed at Barringer labs, GSI labs, and labs respectively with fire assay methods and ICP or AA finish. The 1980 holes do not have assay lab data available, but the values were part of historic production mine work at the time and are consistent with the ALS surface data nearby. Although the work was completed prior to NI-43101 and was not under WKM control and chain of custody, the work was completed by qualified professional geologists and laboratories utilizing standard methods. The results of various dates and operators provide similar results to the surface sample assay work by ALS labs. For the purpose of general exploration target generation, the Non-Independent QP has reviewed the data in detail and has accepted it as verified for general indicative exploration targeting. The data was verified by ensuring a reasonable mineralization type and assay tenor comparison, in the same area, between multiple project exploration companies and labs, along with a review and acceptance of the quality of the work reported. Further confirmation assays under WKM procedures would be required for this data to be used in resource calculations.
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 exploration and project approach of a Prefeasibility Study. 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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1 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 (the “Technical Report”).