VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 28, 2013) - West Kirkland Mining Inc. (News - Market indicators) ("West Kirkland" or the "Company") announced today that it has entered into an amending letter agreement (the "Amendment") with Rubicon whereby it will be able to defer exploration expenditures due to be spent on the 350 square miles (909 square kilometers) which the Company has optioned from Rubicon Minerals Corporation (""Rubicon") in Nevada (the "Rubicon Option").
West Kirkland has made new discoveries of surface oxide gold mineralization on the optioned properties and the Amendment allows time for the resource market to improve so that further work can be funded. The Rubicon Option is an important asset for West Kirkland and holding costs for this large land position, other than the earn-in expenditures, are minimal.
Under the terms of the Amendment, West Kirkland now has until December 31, 2014 to complete the second year expenditures of $3,000,000 on the properties and until December 31, 2016 for final Phase I expenditures. To date, the Company has spent $2,000,000 to satisfy the first year expenditures and $900,000 towards the second year expenditures. As compensation for the revised expenditure periods, the Company has agreed, subject to regulatory approval, to issue 1,000,000 common shares of the Company to Rubicon.
The Amendment allows for a large consolidated land position to be maintained by West Kirkland in a highly prospective area along strike from the Long Canyon gold deposit. The Long Canyon deposit was the core asset of Fronteer Gold Inc. ("Fronteer"), which was acquired by Newmont Mining Corp. ("Newmont").
West Kirkland entered the Long Canyon trend through an option agreement with Fronteer, just prior to Newmont's acquisition of Fronteer. As a result of the option agreement with Fronteer, and in addition to West Kirkland's interests under the Rubicon Option, the Company is forming a joint venture with Fronteer under which the Company will hold a 60 percent interest in the TUG Deposit.
TUG has an NI 43-101 compliant resource containing an Indicated resource of 4,846 million tonnes at 0.84 g/t Au and 40.4 g/t Ag and an Inferred resource of 4,400 million tonnes at 0.79 g/t Au and 30.3 g/t Ag (see TUG Resource and PEA news release dated August 1, 2013 and technical report filed on SEDAR September 13, 2013). West Kirkland has met it's earn in requirement on the TUG Deposit, with the remaining 40 percent being held by Fronteer, a subsidiary of Newmont under terms of the pending joint venture agreement.
For further information on the Company's Rubicon Option, please see the Company's latest quarterly financial statements.
12 Mile Prospect
As announced in the Company's April 25, 2013 News release the Company has identified a 4,000 foot (1,200 meter) alteration system with gold-silver mineralization on the property. Future drilling on 12 Mile will target this alteration system where it is cut by Long Canyon trend structures. To date, the Company has drilled 14 holes on the property For further information on the drilling on the 12 Mile Prospect please refer to news releases on the Company's website. Newmont recently completed drilling on sections surrounding the 12 Mile prospect.
About West Kirkland
West Kirkland was formed in 2010 to focus on gold exploration along major trends in North America. The founders and Board of West Kirkland have successful gold discovery, development and mine operations experience in both Nevada and Ontario over the past 40 years.
Qualified Person
Michael G. Allen, Vice President of Exploration for West Kirkland, and a non-independent qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release.
For further information, please see the Company's website at www.wkmining.com or 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. Such information includes, without limitation, information regarding proposed exploration activities, the issuance of shares and future earn-in expenditures. 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 Company's ability to obtain TSX Ventures Exchange acceptance for the issuance of shares, the ability of the Company to maintain its interest in the Rubicon Option 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.
