22:25:58 EDT Wed 24 Apr 2024
Enter Symbol
or Name
USA
CA



West Kirkland Mining Inc
Symbol WKM
Shares Issued 268,101,169
Close 2014-04-22 C$ 0.105
Market Cap C$ 28,150,623
Recent Sedar Documents

West Kirkland's WK closes Nevada interest acquisition

2014-04-23 14:07 ET - News Release

Also News Release (C-ANV) Allied Nevada Gold Corp

Mr. R. Michael Jones of West Kirkland reports

WEST KIRKLAND COMPLETES ACQUISITION OF HASBROUCK AND THREE HILLS PROPERTIES FROM ALLIED NEVADA

Further to West Kirkland Mining Inc.'s press release of Jan. 27, 2014, the company's subsidiary, WK Mining (USA) Ltd., has completed its acquisition of an initial 75-per-cent interest in the Hasbrouck and Three Hills properties for $20-million (U.S.) from subsidiaries of Allied Nevada Corp.

WK Mining (USA) paid total consideration of $20-million (U.S.) to Allied Nevada for a 75-per-cent interest in the properties. The properties contain near-surface oxidized gold resources and are located close to infrastructure for potential future mining operations.

Sandy McVey, chief operating officer of West Kirkland, said: "After evaluating nearly 250 properties worldwide under strict criteria, we are pleased to have acquired the properties and completed this transaction. With the support of our institutional shareholders, West Kirkland can begin the work needed to bring these assets towards permitting and a construction decision."

On Feb. 24, 2014, West Kirkland filed on SEDAR a National Instrument 43-101 Standards of Disclosure for Mineral Projects-compliant technical report on the properties, titled, "Technical Report for the Hasbrouck Project, Esmeralda County, Nevada, USA." The report was filed following the company's Feb. 24, 2014, news release, which announced a revised resource estimate for the properties as shown in the attached table.

                             HASBROUCK AND THREE HILLS
                                                           Gold  Silver    AuEq
Category                 Tonnes    Gold  Silver    AuEq    (000    (000    (000
                          (000s)    opt     opt     opt      oz)     oz)     oz)

Measured                 15,777   0.015   0.286   0.020     231   4,509     310
Indicated                62,415   0.012   0.219   0.016     731  13,640     970
Measured and indicated   78,192   0.012   0.232   0.016     962  18,149   1,279
Inferred                 69,923   0.008   0.159   0.011     566  11,136     761

Cut-off: 0.005 ounce per ton gold equivalent
AuEq calculated: AuEq equals gold plus (silver divided by 57.14).

Notes:

1. CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definitions are
   followed for classification of mineral resources.
2. Mineral resources are estimated using a gold price of $1,200 (U.S.) per ounce
   and a silver price of $21 (U.S.) per ounce.
3. Totals may not represent the sum of the parts due to rounding. 
4. The mineral resources have been prepared by Scott E. Wilson in conformity 
   with CIM Estimation of Mineral Resource and Mineral Reserves Best Practices 
   Guidelines, and are reported in accordance with the Canadian Securities 
   Administrators' NI 43-101. Mineral resources are not mineral reserves and do
   not have demonstrated economic viability. There is no certainty that all or 
   any part of the mineral resource will be converted into a mineral reserve.

The report, dated effective Feb. 21, 2014, was prepared in conformance with NI 43-101 by Mr. Wilson, AIPG (American Institute of Professional Geologists) certified professional geologist, who is WKM's independent qualified person as defined under NI 43-101. A copy of the report can be found on SEDAR and on the company's website.

Acquisition details

WK Mining (USA) has finalized and executed a purchase and sale agreement (PSA) with Allied Nevada to acquire the properties. WK Mining (USA) has paid both the deposit and initial payment with total consideration having been paid to Allied Nevada being $20-million (U.S.). Title to the properties has been transferred to WK Mining (USA).

Pursuant to the PSA, WK Mining (USA) has the option of making an additional $10-million (U.S.) payment on or before Oct. 23, 2016. If WK Mining (USA) pays the final payment to ANV in accordance with the terms and conditions of the PSA, it will acquire the remaining 25-per-cent interest in the properties and own a 100-per-cent interest in the properties.

If WK Mining (USA) does not make the final payment to ANV on or before the final payment deadline, or if WK Mining (USA) offers payment and ANV chooses to decline the final payment, then the properties shall be transferred into a joint venture with WK Mining (USA) retaining a 75-per-cent interest in the joint venture and ANV retaining a 25-per-cent interest in the joint venture. Upon entering the joint venture, both parties will be responsible for their share of the costs on a pro rata basis with Allied Nevada's share of the costs accruing and payable in full 30 months after the formation of the joint venture.

Go-forward plans

WK Mining (USA) intends to advance the properties to a prefeasibility study and initiate permitting. As part of this work, WK Mining (USA) will complete exploration and condemnation drilling, geotechnical and hydrological investigations, and metallurgical studies on the properties.

Qualified persons

Mr. Wilson, AIPG certified professional geologist, is WKM's independent qualified person as defined under NI 43-101. He has recently visited the properties, and has read and approved the technical information in this news release. Mr. Wilson 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.

Michael G. Allen, vice-president of exploration for WKM and a qualified person as defined by NI 43-101, has reviewed the information contained in this news release. He is the non-independent qualified person for this new release and has verified the data.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.