West Kirkland Mining Inc.

TSX VENTURE : WKM


West Kirkland Mining Inc.

April 23, 2014 14:00 ET

West Kirkland Completes Acquisition of Hasbrouck and Three Hills Properties from Allied Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 23, 2014) - Further to its press release of January 27, 2014, West Kirkland Mining Inc. (TSX VENTURE:WKM) ("West Kirkland", "WKM" or the "Company") is pleased to announce that its subsidiary, WK Mining (USA) Ltd. ("WK Mining (USA)"), has completed its acquisition of an initial 75% interest in the Hasbrouck and Three Hills properties (the "Properties") for US$20,000,000 from subsidiaries of Allied Nevada Corp. (TSX:ANV) ("Allied Nevada" or "ANV").

WK Mining (USA) paid total consideration of US$20,000,000 to Allied Nevada for a 75% 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 February 24, 2014 West Kirkland filed on SEDAR a National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report on the Properties (the "Report") titled "Technical Report for the Hasbrouck Project, Esmeralda County, Nevada, USA". The Report was filed following the Company's February 24, 2014 news release which announced a revised resource estimate for the Properties as follows:

HASBROUCK & THREE HILLS (0.005 opt AuEq Cutoff)
Category
Tons
(000 tons)
Gold
opt
Silver
opt
AuEq
opt
Gold
(000
oz)
Silver
(000
oz)
AuEq
(000
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 & 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
AuEq calculated AuEq= Au + (Ag/57.14)

Notes:

  1. CIM definitions are followed for classification of Mineral Resources
  2. Mineral Resources are estimated using a gold price of US$1,200 per ounce and a silver price of US$21 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 NI43-101. 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 mineral reserve.

The Report, dated effective February 21, 2014, was prepared in conformance with NI 43-101 by Mr. Scott E. Wilson, AIPG Certified Professional Geologist, who is WKM's Independent Qualified Person as defined under NI 43-101. A copy of the Report can be found at www.sedar.com and on the Company's website.

Acquisition Details

WK Mining (USA) has finalized and executed a Purchase and Sale Agreement (the "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 US$20,000,000. 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 US$10,000,000 payment (the "Final Payment") on or before October 23, 2016 (the "Final Payment Deadline"). 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% interest in the Properties and own a 100% 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, the Properties shall be transferred into a joint venture (the "Joint Venture") with WK Mining (USA) retaining a 75% interest in the Joint Venture and ANV retaining 25% 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 Pre-Feasibility 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. Scott E. 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.

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 Long Canyon Trend of Nevada/Utah. The founders and Board members of West Kirkland have successful experience in gold discovery, mine development and mine operations in Nevada and other gold producing jurisdictions in North America.

For further information, please see contact us by email at info@wkmining.com.

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, all statements regarding the Final Payment, forming a workable joint venture with Allied Nevada, advancing the Properties to a Pre-Feasibility study and initiating permitting and completing exploration and condemnation drilling, geotechnical and hydrological investigations and metallurgical studies on the Properties. Although WKM believes that such timing as set out in this press release is reasonable, it can give no assurance that such expectations 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, recent market volatility; the results of the Company's due diligence evaluations with respect to the Properties; developments with respect to Allied Nevada or the Properties; 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 resource 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"), and resource and reserve information contained therein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". 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.
The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that
do not constitute "reserves" by U.S. standards in documents filed with the SEC. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "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, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. 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. The requirements of NI 43-101 for identification of "reserves" are also not the same as those of the SEC, and reserves reported by the Company in compliance with NI 43-101 may not qualify as "reserves" under SEC standards. In addition, under SEC standards, a company may only be identified as "development" stage if it has established "reserves" by SEC standards and is engaged in the preparation of such reserves for extraction. 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.

Contact Information

  • West Kirkland Mining Inc.
    R. Michael Jones
    (604) 685-8311

    West Kirkland Mining Inc.
    Knox Henderson
    (604) 685-8311
    info@wkmining.com