West Kirkland Updates Prefeasibility Optimizing For Reduced Total Funding; Files Technical Report On Hasbrouck Project

VANCOUVER, BRITISH COLUMBIA, July 17, 2015 –West Kirkland Mining Inc. (WKM:TSXV) ("West Kirkland") reports an update to its prefeasibility study information for a revised project model that optimizes and reduces peak funding for the Hasbrouck Project. The Hasbrouck Project is planned to be built in phases with Three Hills, a run-of-mine open pit heap leach, to be mined first, followed by the larger Hasbrouck crushed heap leach mine. The revised scenario delays construction of the Hasbrouck mine from the prefeasibility base case, allowing more time for gold to come off the Three Hills heap leach and generate cash flow to be used for the construction of Hasbrouck. By doing so, the overall total funding for the project is reduced from US $89 million to US $54 million.

The project’s base case, reported June 3, 2015, has an after-tax internal rate of return (IRR) of 26% and $75 million net present value at a 5% discount rate (NPV 5%) using $1,225/oz gold and $17.50/oz silver (all figures reported here are US dollars and based on 100% of the project).  Processing is planned at an average 6.1 million ore tons per year for 71,000 ounces annual gold production for eight years. In the revised scenario, delaying the Hasbrouck construction by four months eliminates the need for an additional $35 million to construct the Hasbrouck pit and infrastructure, while only slightly reducing after-tax IRR from 26% to 24% and NPV from $75 million to $71 million. 

R. Michael Jones, P.Eng. and co-founder of West Kirkland said, “The opportunity to reduce total funding by allowing the first pit to pay for the second larger mine area makes sense in the current adverse market conditions. The next important milestone is a permit decision on the first pit and recovery facilities at Three Hills under an Environmental Assessment review process conducted by the Bureau of Land Management.”

Hasbrouck Project Reserves

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 (1, 2)
Three Hills K tons Grade
(oz Au/ ton)
K oz Au oz Ag/ton K oz Ag
0.005 opt
Au cutoff
Proven - - - - -
Probable 9,653 0.018 175 - -
P&P 9,653 0.018 175 - -
Variable (3) 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 (3) 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

1. The estimation and classification of Proven and Probable reserves have been prepared by Thomas L. Dyer, P.E., of Mine Development Associates 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

Hasbrouck Project Resources

Resources are reported inclusive of reserves and are based on 100% of the project.

Hasbrouck Deposit Reported Mineral Resources* November 3, 2014,
Mine Development Associates  (0.006oz AuEq/ton Cutoff)
Class Tons oz Au/ton oz Au oz Ag/ton oz Ag
Measured 8,261,000 0.017 143,000 0.357 2,949,000
Indicated 45,924,000 0.013 595,000 0.243 11,147,000
M+I 54,185,000 0.014 738,000 0.260 14,096,000
Inferred 11,772,000 0.009 104,000 0.191 2,249,000
Notes: oz AuEq/ton = oz Au/ton + (oz Ag/ton x 0.000417)


Three Hills Reported Mineral Resources* August 4, 2014,
Mine Development Associates (0.005oz Au/ton Cutoff)
Class Tons oz Au/ton oz Au
Indicated 10,897,000 0.017 189,000
Inferred 2,568,000 0.013 32,000

1.CIM definitions are followed for classification of Mineral Resources
2.Mineral Resources are estimated using a gold price of US$1,300 per ounce and a silver price of US$22 per ounce
3.Totals may not represent the sum of the parts due to rounding.
4.The Mineral Resources have been prepared by Paul Tietz, C.P.G of Mine Development Associates in conformity with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators NI43-101.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.  There is no certainty that all mineral resource will be converted into mineral reserve.

Technical Report Filed

West Kirkland also reports that it has filed on SEDAR a National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report on the Hasbrouck and Three Hills properties, Nevada (the “Report”). The Report was filed on SEDAR July 17, 2015 following the Company's June 3, 2015 news release announcing the results of a prefeasibility study and a new mineral resource and reserve estimate on both the Hasbrouck and Three Hills deposits.

The Report, titled “Technical Report and Preliminary Feasibility Study: Hasbrouck and Three Hills Gold-Silver Project, Esmeralda County, Nevada,” is dated effective June 19, 2015. It has been prepared in conformance with NI 43-101 by Thomas L. Dyer, P.E. and Paul Tietz, C.P.G. of Mine Development Associates (MDA), who are West Kirkland’s Independent Qualified Persons as defined under NI 43-101. MDA has supervised the preparation of the information that forms the basis of the written disclosure in the news release dated June 3, 2015.

About the WKM Hasbrouck Project

Located near Tonopah, Nevada, the Hasbrouck Project consists of two oxidized gold deposits eight kilometers apart, Three Hills and Hasbrouck.  West Kirkland has a 75% controlling interest in the project. The Company has been informed that a portfolio company of Waterton Precious Metals Fund II Cayman, LP has bought the 25% interest in the Hasbrouck Project and other exploration assets from Allied Nevada for US $17.5 million.

*Authors and Qualified Persons Statement

The Prefeasibility Study, Mineral Resource Estimate and Mineral Reserve Estimate were prepared in conformance with NI 43-101 by Mine Development Associates (MDA). The Technical Report was prepared by Thomas L. Dyer, P.E. and Paul Tietz, C.P.G. of MDA, with contributions by Herb Osborne, Metallurgical Eng., SME, of H.C. Osborne & Associates (metallurgy), Ryan Baker, P.E., of NewFields (civil and heap leach) and Carl Defilippi, SME, of Kappes Cassiday & Associates (process design).  Each person is a "Qualified Person" under NI 43-101 and has reviewed and approved the information in this news release relevant to the portion of the Hasbrouck prefeasibility study for which they are responsible. MDA 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, P.Eng., Chief Operating Officer for West Kirkland, and a non-independent Qualified Person as defined by NI 43-101, has also 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 Hasbrouck and Three Hills properties in southwestern Nevada. The founders and board members of West Kirkland have successful and extensive experience in gold discovery, mine development, and mine operations in Nevada and other gold producing jurisdictions in North America.

For more information, contact:
Knox Henderson, VP Investor Relations, at (604) 685-8311

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 statements regarding the ability to achieve the recoveries and the processing capacity of the mines; regulatory processes and permitting; estimates of gold or other minerals grades; anticipated costs, anticipated sales, project economics, the realization of expansion and construction activities and the timing thereof; production estimates and other statements that are not historical facts. Information concerning mineral re/_modules/bCMS/content/forms/source/reserve estimates and the economic analysis thereof contained in the prefeasibility study are also forward-looking statements in that they reflect a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined. 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, significant increases in any of the machinery, equipment or supplies required to develop and operate a mine, a significant change in the availability or cost of the labor force required to operate a mine, a significant increases in the cost of transportation for the Company’s products, 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 resources 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”) Industry Guide 7, and resource or reserve information contained herein may not be comparable to similar information disclosed by U.S. companies.  In particular, and without limiting the generality of the foregoing, “resources” and “reserves” established under NI 43-101 standards may not qualify as “resources” and “reserves” under U.S. standards.  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.  In addition, under U.S. standards, a “Final” or “Bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. 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. 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.

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