West Kirkland Announces Initial Near Surface Gold Resource for TUG Deposit
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/01/12 -- West Kirkland Mining Inc. (TSX VENTURE: WKM) ("West Kirkland" or the "Company") is pleased to report that a National Instrument 43-101 ("NI 43-101") compliant inferred mineral resource estimate has been completed for the TUG deposit located in Utah, along the Long Canyon Trend. Using a cut-off grade of 0.1 grams per tonne gold, the TUG deposit is estimated to contain an inferred mineral resource of 679,000 gold equivalent ("AuEq") ounces as detailed below. The Company expects that a NI 43-101 report (the "Technical Report") will be filed on SEDAR within 45 days.
Table 1 - TUG deposit Mineral Resources Statement
Prepared by Jason Baker, P. Eng. of Caracle Creek International Consulting Inc. ("Caracle Creek") May 29, 2012 and accepted by the Company on May 30, 2012.
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Grade Grade Grade(2)
Quantity Au Ag AuEq Ounces Ounces Ounces(2)
Area Category (tonnes)(1) g/t g/t g/t Au Ag AuEq
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TUG Inferred 27,110,000 0.49 15.8 0.78 431,400 13,844,800 679,000
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(1) Reported at a cut-off grade of 0.1 g/t Au. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
(2)AuEq was calculated assuming 100% metal recovery using a metal price
ratio between Ag and Au (Ag: Au)= 0.018 (AuEq= Au+(Ag(i)0.018))
R. Michael Jones, President and CEO of West Kirkland Mining, said, "The TUG deposit is of interest in the current market. We see TUG as a base from which we can grow a low cost gold model targeting near surface deposits. Our regional exploration on our 952 square kilometer land position is focused on a large-scale Long Canyon type deposit. As we systematically complete our regional exploration work we are also cognisant of the working radius to TUG, which can be a solid base."
West Kirkland has the right to earn a 60% interest at TUG as part of a regional transaction completed in December 2010 with Fronteer Development (USA) Inc. (now a subsidiary of Newmont Mining Corporation). The TUG resource is primarily a near surface oxide resource that may be amenable to open pit mining and heap leach extraction for gold and silver. Approximately 34% of the tonnes of the resource, representing 44% of the AuEq ounces, are located within 40 meters of surface, providing potential for very low stripping and mining costs as well as short project lead times.
A three dimensional image of the inferred mineral resource model with drill holes can be viewed from this link: http://www.wkmining.com/_resources/news/TUGresource.jpg
TUG Inferred Mineral Resource Estimate at different cut-off grades
Grade sensitivity was performed using variable cut-off grades. The results are tabulated in the table below.
Table 2 - Grade Sensitivity for TUG Deposit
Prepared by Jason Baker, P. Eng. of Caracle Creek
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Au Ag AuEq Au Ag AuEq
Cut-Off Tonnes g/t g/t g/t Ounces Ounces Ounces
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(i)0.1 27,110,000 0.49 15.8 0.78 431,400 13,844,800 679,000
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0.2 22,430,000 0.57 18.0 0.89 408,100 13,019,600 642,400
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0.3 16,690,000 0.67 21.9 1.07 362,200 11,726,000 573,300
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0.4 11,960,000 0.80 25.8 1.27 309,400 9,921,300 487,900
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0.5 9,090,000 0.92 28.8 1.43 267,900 8,408,300 419,200
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0.6 7,350,000 1.00 31.0 1.56 237,400 7,331,300 369,400
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These figures are not to be misconstrued as a mineral resource as they are
intended for the sole purpose of demonstrating the sensitivity of the
inferred mineral resource estimate with respect to reporting cut-off grade.
(i) Base case reported at a cut-off of 0.1 g/t Au
Future Plans for TUG and Nevada
West Kirkland plans to start the design of a preliminary open pit, permitting and an economic assessment for TUG. This work will be integrated into the Company's regional exploration program planned for the Long Canyon Trend. At the 12 Mile showing, located approximately 10 kilometers (6 miles) to the west of the TUG deposit, there is a new discovery made by the Company of 1.73 g/t gold in oxidized material at surface. Drilling of the new discovery at 12 Mile and additional targets within the Long Canyon Trend will be a priority of the Company in the months ahead.
Regional exploration in the Long Canyon Trend by West Kirkland has identified numerous undrilled and at or near surface gold targets in the setting of the Long Canyon deposit itself. The Company has started road building and follow-up mapping for an initial exploration drilling program.
Details of the Inferred TUG Mineral Resource Estimation
Drill hole collar coordinates and details including assays, lithology and down hole survey data were provided by West Kirkland to Caracle Creek. The resource estimate was calculated using data from 485 drill holes from programs of four previous operators between 1981 and 1997, as well as 13 drill holes drilled by West Kirkland Mining Inc. in 2011 and 2012. Quality assurance and control was completed by Caracle Creek on all of the assays from 2011 and 2012 drill programs and on selected check assays, representing approximately 5% of the historical drill holes, prior to incorporation in the 3D model. Caracle Creek checked and verified the data to their satisfaction as independent Qualified Persons.
3D wire frames (solids) representing the mineralized areas were constructed by West Kirkland and modified as deemed appropriate by Caracle Creek to constrain (domain) the tonnage and grade estimation. Specific Gravity (SG) for the TUG property was determined using 52 SG samples, which averaged 2.87. Au and Ag composites were calculated at three meters using the original assay data. Au composites were capped at 8.00 g/t. Ag composites were capped at 800 g/t. This reduced the influence of extreme grade values (outliers) in the composited data set. Block model grades for Au and Ag were estimated using the anisotropic inverse distance method of interpolation. Missing assay intervals were interpolated through and not assigned zero grades.
Primarily as a result of the lack of sufficient validation drilling of historic data, as well as the lack of sufficient specific gravity data, the TUG resources are classified as inferred.
Independent, NI 43-101 compliant inferred mineral resources at the TUG property were estimated by Jason Baker, P.Eng. (APENS#9627), a Geological Engineer with Caracle Creek and an independent qualified person in accordance with the independence tests set out in NI 43-101. The inferred mineral resources are reported in accordance with National Instrument 43-101 (the "Independent QP") and have been estimated in compliance to the latest CIM Definition Standards for Mineral Resources and Mineral Reserves.
The Independent QP has read and approved the relevant technical portions of this news release related to the inferred mineral resource estimates for which he is responsible.
Data, Verification, Quality Control and Assurance
Julie Selway, Ph.D., P.Geo, a Senior Geologist with Caracle Creek International Consulting (APGO#0738) and an independent Qualified Person, verified the analytical data used to create the inferred mineral resource estimate. Sherri Hodder, P. Geo, a geologist with Caracle Creek, has visited the property.
Michael G. Allen, Vice President of Exploration for West Kirkland, and a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release other than the inferred mineral resource estimate, including but not limited to the plans of the Company. He is the non-independent qualified person for the purpose of this news release.
About West Kirkland
West Kirkland was formed in 2010 to focus on gold exploration along major trends in North America. The Company has consolidated significant mineral rights positions in the Kirkland Lake area of Ontario and within major gold trends of northeastern Nevada - two of North America's premier gold jurisdictions. The founders and Board of West Kirkland have successful gold discovery, development and mine operations experience in both Ontario and Nevada over the past 40 years.
Disclaimer for Forward-Looking Information
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities and the filing of the Technical Report within 45 days. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. 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. 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; recent market volatility; 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; the ability of Caracle Creek to deliver the Technical Report to the Company within 45 days 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 Estimates of Inferred Mineral Resources
This press release uses the terms "inferred mineral resources". We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. The terms "contained gold ounces" and "contained silver ounces" used in this press release are not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally mineable.
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.
Contacts:
West Kirkland Mining Inc.
R. Michael Jones
(604) 685-8311
West Kirkland Mining Inc.
Michael Allen
(604) 685-8311
West Kirkland Mining Inc.
Knox Henderson
(604) 685-8311
info@wkmining.com
www.wkmining.com
Sequoia Partners
James Beesley
778-389-7715
james@sequoiapartners.ca
