West Kirkland Mining Inc. today announces that a Limited Liability Corporation Agreement governing the Hasbrouck Gold 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, 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:
- The estimation and classification of Proven and Probable reserves have been prepared by Thomas L. Dyer, P.E., of MDA following CIM standards.
- Reserves are estimated based on $1,225/oz gold and $17.50/oz silver.
- 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.
- 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.
- 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.
- 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.
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.