West Kirkland Mining (CVE:WKM) Friday unveiled an initial NI 43-101 inferred mineral resource estimate for its TUG deposit located in Utah, along the Long Canyon Trend.
Using a cut-off grade of 0.1 grams per tonne (g/t) gold, the TUG deposit is estimated to contain an inferred mineral resource of 679,000 gold equivalent ounces. West Kirkland expects an NI 43-101 report will be filed on SEDAR within 45 days.
The TUG resource is primarily a near-surface oxide resource that may be amenable to open pit mining and heap leach extraction for gold and silver, accordng to the company.
Approximately 34 percent of the tonnes of the resource, representing 44 percent of the gold equivalent ounces, are located within 40 metres from surface, providing potential for very low stripping and mining costs as well as short project lead times, the company said.
"The TUG deposit is of interest in the current market," West Kirkland Mining's president and CEO R. Michael Jones said.
"We see TUG as a base from which we can grow a low cost gold model targeting near surface deposits. Our regional exploration on our 952 square kilometer land position is focused on a large-scale Long Canyon type deposit.
"As we systematically complete our regional exploration work we are also cognisant of the working radius to TUG, which can be a solid base."
The company has the right to earn a 60 percent interest at TUG as part of a regional transaction completed in December 2010 with Fronteer Development (USA) Inc., which is now a subsidiary of Newmont Mining (TSE:NMC)(NYSE:NEM).
In terms of future plans for TUG and Nevada, West Kirkland said it plans to start the design of a preliminary open pit, permitting and an economic assessment for TUG.
This work will be integrated into the company's regional exploration program planned for the Long Canyon Trend.
At the 12 mile showing, located approximately 10 kilometres to the west of TUG, a new discovery of 1.73 grams per tonne gold in oxidized material at surface has been found.
Drilling of this new discovery at 12 Mile and additional targets within the Long Canyon Trend will be a priority in the months ahead, West Kirkland Mining said.
Regional exploration in the Long Canyon Trend by West Kirkland has already identified several undrilled at or near-surface gold targets in the setting of the Long Canyon deposit itself.
The company has started road building and follow-up mapping for an initial exploration drilling program.
The independent, NI 43-101 compliant inferred mineral resource was estimated by Jason Baker, a geological engineer with Caracle Creek.
West Kirkland was formed in 2010 to focus on gold exploration along major trends in North America. It has consolidated mineral rights positions in the Kirkland Lake area of Ontario and within major gold trends of northeastern Nevada - two of North America's premier gold jurisdictions.
The founders and board of West Kirkland also have successful gold discovery, development and mine operations experience in both Ontario and Nevada over the past 40 years.
Julie Selway, Ph.D., P.Geo, a Senior Geologist with Caracle Creek International Consulting (APGO#0738) and an independent Qualified Person, verified the analytical data used to create the inferred mineral resource estimate. Sherri Hodder, P. Geo, a geologist with Caracle Creek, has visited the property.
Michael G. Allen, Vice President of Exploration for West Kirkland, and a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release other than the inferred mineral resource estimate, including but not limited to the plans of the Company. He is the non-independent qualified person for the purpose of this news release.