- 567,000 recoverable gold ounces, 71,000 ounces annual production for 8 years
- US$708 adjusted operating costs per ounce, US$779 all-in sustaining costs
- US$75.3 million After-Tax NPV (5%), 26% IRR at US$1,225/oz Au and US$17.50/oz Ag
- US$54.3 million initial capital
VANCOUVER, BRITISH COLUMBIA, June 03, 2015 � West Kirkland Mining Inc. (WKM:TSXV) (�West Kirkland� or the �Company�) announces the results of an independent prefeasibility study of the Hasbrouck Project, Nevada produced by Mine Development Associates (MDA) of Reno. Values presented in this news release are in U.S. dollars and are based on 100% of the project; the Company has a 75% interest in the project and has the right to make an offer on the remaining 25%. The remaining 25% is a participating interest and if not purchased by the Company the holder must contribute to capital or dilute.
The project has a 26% internal rate of return (IRR) and an after-tax $75.3 million net present value (NPV) at a 5% discount rate using $1,225/oz gold and $17.50/oz silver. Processing is expected to average 6.1 million ore tons per year to annually produce 71,000 ounces of gold. The Three Hills and Hasbrouck deposits are located within a large land position with near surface gold intercepts that are proximal to, and not presently included, in the resource models. These intercepts are viable exploration targets for drilling, planned after achieving initial production.
The Three Hills mine is expected to produce for approximately two years followed by six years at the Hasbrouck mine, to produce a combined 567,000 ounces of gold over eight years. The life of mine stripping ratio is modeled at 1.1:1. An adsorption-desorption-recovery (ADR) plant is planned at Three Hills for stripping loaded carbon from both the Three Hills and Hasbrouck mines. Loaded carbon from the Hasbrouck mine is to be trucked five miles (eight kilometers) north to Three Hills for gold recovery.
Initial capital expenditures to construct the Three Hills mine and ADR plant are estimated at $54.3 million. Further project investment of $83 million in Year 1 and 2 of production is required to construct the larger Hasbrouck mine. Of this, $43.5 million will be from free cash flow generated by Three Hills. Peak funding is expected to be reached in Year 2 at $89..1 million (see Project Highlights table below for details).
Adjusted operating costs for the project are predicted to be $708 per ounce of gold, with all-in sustaining costs of $779 per ounce of gold.
�The Hasbrouck Project is simple and straight-forward,� said Sandy McVey, West Kirkland�s Chief Operating Officer. �Both mines have low stripping ratios, minimal pre-strip, and no adverse environmental or cultural factors. Good infrastructure exists with nearby grid electricity, paved highways and water sources. We are targeting construction permits for late 2015 following the recent decision by the Bureau of Land Management to review the Three Hills mine under an Environmental Assessment.� (For further information on permitting at Three Hills please refer to the Company�s May 8, 2015 news release).
To read the complete news release, please see the following link:
http://www.wkmining.com/_resources/news/nr_2015_06_03.pdf