Permitting To Be Completed Hasbrouck Gold Project
VANCOUVER - West Kirkland Mining Inc. reported on its Hasbrouck Gold Project in Nevada. The public comment period for the final state permit for construction of the Three Hills mine closed on February 23, 2016 with no comments received. A Federal Decision Record for the Three Hills part of the Hasbrouck Project was obtained in November 2015 and the last permit required for construction and operation is expected from Nevada in the next 60 days.
The Three Hills mine is a run-of-mine open pit heap leach operation and is the first phase of the Hasbrouck Gold Project. The second phase is an open pit crushed-ore heap leach operation at the Hasbrouck mine to the south.
West Kirkland Mining owns 75% of the Hasbrouck Project and is the operator. Combined Measured and Indicated resources (100% basis) of both the Hasbrouck and Three Hills deposits contain 927,000 ounces of gold and 14.1 million ounces of silver. Inferred resources at both deposits contain an additional 136,000 oz of gold and 2.2 million ounces of silver. Reserves for both deposits contain approximately 762,000 ounces of gold and 10.6 million ounces of silver. Tonnage and grade of all resources and reserves are summarized below.
The July 2015 pre-feasibility study planned 71,000 ounce of gold per year over 8 years. The Three Hills mine will provide 2 to 3 years of production as a low cost open pit run-of-mine heap leach operation, generating substantially all cash needed to build the second phase at Hasbrouck mine.
CEO R. Michael Jones, P.Eng said "The current gold price is right on our assumptions in the Hasbrouck Pre-feasibility Study (US$ 1,225) and it is an ideal time for the permitting to be completed. Hasbrouck is one of the only truly shovel-ready gold heap leach projects in Nevada. The ability to start in ore at surface at Three Hills and put run-of mine material on the heap leach with a very good gold recovery adds to the attractiveness of the project."
Since the November 2015 Federal Decision Record, the Company has developed a detailed execution plan for the construction of the Three Hills mine. This has both confirmed and developed the July 2015 pre-feasibility study findings.
The Company continues permitting the larger Hasbrouck Peak open pit and is preparing to make a construction decision at Three Hills as market conditions improve. West Kirkland also holds a 60% interest in the open pit heap leach TUG Gold deposit in Utah in Joint Venture with Newmont.
Located near Tonopah, Nevada, the Hasbrouck Gold Project consists of two oxidized gold deposits eight kilometers apart, Three Hills and Hasbrouck. West Kirkland has a 75% controlling interest in the project. In 2015, Waterton Precious Metals Fund II Cayman, LP bought a 25% interest in the Hasbrouck Gold Project and certain exploration assets for US $17.5 million.