west kirkapr13presentation
TRANSCRIPT
TSX.V: WKM April 2013
Long Canyon Trend, Nevada and Utah
TUG Deposit, Utah Facing northwest, on-strike
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This presentation has been prepared by West Kirkland Mining Inc. (“West Kirkland” “WKM” or the “Company”). Information included in this presentation regarding the Company’s mineral properties has been compiled by R. Michael Jones, P.Eng, the President and Chief Executive Officer of the Company, and a non-independent Qualified Person for purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), based on the independent technical reports, and Press Release Information filed by the Company with the Canadian securities regulators. For more detailed information regarding the Company and its mineral properties, you should refer to the Company’s independent technical reports and other filings with the Canadian securities regulators, which are available at www.sedar.com. Scientific or Technical information contained herein is derived from the Company’s technical reports which include more detailed information with respect to the Company’s properties, including the dates of such reports and the estimates included therein, details of quality and grade of each resource, details of the key assumptions, methods and parameters used in the resource estimates, a general discussion of the extent to which the resource estimates and the other estimates and projections included in the reports may be materially affected by any known environmental, permitting, legal, taxation, socio-political, marketing, or other relevant issues.
Information included in this presentation, the Company’s independent technical reports and the Company’s other public statements related to its mineral properties has been prepared in accordance with securities laws in effect in Canada. This presentation also contains information about adjacent properties on which the Company has no right to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This presentation is not an offer to sell, or a solicitation to buy, any securities in any jurisdiction. The Toronto Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by the Company. Historical results presented herein are not guarantees or expectations of future performance.
Certain of the statements made herein, including statements regarding the timing of future activities and achievements by the Company, future anticipated exploration and development programs, business plans, potential mining scenarios and timing of production, business trends and future operating factors and anticipated supply and deficits, are forward-looking and subject to important risk factors and uncertainties, many of which are beyond the Company’s ability to control or predict. In addition, technical results constitute forward-looking statements to the extent that they represent, respectively, estimates of mineralization that may be encountered upon additional exploration and estimates of the capital and operating expenses, metals and currency prices and other operating conditions that may be encountered in the future.
Forward-looking statements are necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, among others: metals price volatility; demand and supply; additional fundraising requirements; defective title to mineral claims or property; discrepancies between actual and estimated reserves and resources, between actual and estimated development and operating costs, between actual and estimated metallurgical recoveries and between estimated and actual production; changes in national and local government legislation (including environmental legislation), taxation, controls, regulations and political or economic developments in Canada, or other countries in which the Company does or may carry out business in the future; success of exploration activities and permitting time lines; the speculative nature of mineral exploration, development and mining, including the risks of obtaining necessary licenses and permits; dilution; competition; currency fluctuations; and loss of key employees. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, mine collapses, cave-ins or flooding (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks).
The Company undertakes no obligation to update publicly or release any revisions to forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.
Notice to US investors:
This presentation 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.
COMPANY NEIGHBOUR/S MARKET CAP
Platinum Group Metals
Anglo American,
Platmin, Lonmin, others 2001 $9.5 M $550 Million 2013
MAG Silver
Penoles/Fresnillo
2003 $11.5 M $585 Million 2013
West Timmins Mining
Lake Shore Gold
2006 $24 M $424 Million 2012
West Kirkland Mining
Newmont, Agnico-Eagle
2010 $12.5 M OPPORTUNITY!
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Proven management team using “Ruler-Line” strategy
R. Michael Jones and Frank Hallam, for Platinum Group Metals’
Waterberg Project in South Africa: 10 M/oz 3E resource
WBJV Project: Production starts in 2014 Approx. 4 M/oz 4E reserve, 275,000 oz Year 20+ mine life
“2012 Mines and Money - Discovery of the Year”
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Recent Paradigm Shift : 2.2 M oz Au Long Canyon Deposit
New geological “pull-apart” structure
Newmont acquires Long Canyon Deposit for $2.3 Billion in 2010
Newmont continues to expand deposit, drill on adjacent ground
WKM consolidates 1,0002 kilometers in the Trend
WKM TUG deposit, Utah now at PEA stage
WKM plans for additional 8,000 meters of drilling in high priority exploration targets in 2013
3,100 meters completed by April 2013, assays pending
The Long Canyon Trend
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Declining: Large (+5 M oz) GOLD Discoveries World Wide
Source: Pierre Lassonde , Intierra, Barrick
# o
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Share Structure (As of April 11, 2013)
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ISSUED & OUTSTANDING:
Common Shares: 60,293,336
Institutions (estimate) 57% 34,400,000
(Wexford 19.8%) (Newmont 9.6%)
Management (escrowed: 918,000) 11.5% 6,931,575
Public float (estimate) 31.5% 19,000,000
WARRANTS & OPTIONS:
Warrants: ($0.60 to Jan. 20, 2014) ($0.40 to Feb. 7, 2014)
2,414,301 22,400,000
Stock Options: ($0.20 to $1.10) 2,020,000
FULLY DILUTED: 87,127,637 7
R. Michael Jones, B.Sc., P.Eng., Director, President & CEO President, Director and CEO of Platinum Group Metals. Co-founder of West Timmins Mining – purchased by Lake Shore Gold Corp. in 2009. Co-founder of MAG Silver Corp. Founder of Glimmer Resources. Founder of companies that have discovered four mines, including two gold mines in the Kirkland Lake – Timmins area.
Frank Hallam, BBA, CA, Director, CFO & Corporate Secretary
Founder of New Millennium Metals Corp. - amalgamated with Platinum Group Metals Ltd., where he currently serves as a director and CFO. Co-founder and Director of MAG Silver Corp. Director of Lake Shore Gold Corp.
Pierre Lebel, MBA, LLB, Director Chairman of Imperial Metals Corporation since 2003, prior President from 1986-2003. Extensive experience in managing public companies serving as a director of a number of public companies during his career.
Eric Carlson, B.Comm.,CA Director
Over 17 years of real estate investment, development, and management experience. President and CEO of Anthem Properties Corp. since July 1994. Director of MAG Silver Corp. and Platinum Group Metals
John S. Brock, B.Sc., Director
Over 40 years of service in an executive role with 20 public junior companies. Through these companies under his management he has participated in 12 major mineral deposit discoveries worldwide.
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Corporate Management – Board of Directors
Management – Local Gold Discovery Track Record WKM’s management has discovery track record of several large-scale gold mines in the districts where we are currently exploring. Our exploration managers are established and live in the gold districts where we operate
R. Michael Jones, B. Sc., P.Eng Director, President & CEO
Michael G. Allen, P. Geo. VP Exploration
A broad range of experience from grass roots exploration to underground development and mine construction management in multiple deposit types and jurisdictions. Work history includes DeBeers Canada, Rubicon Minerals, and Taseko Mines.
Sandy McVey, P. Eng. PMP, M.Sc. Chief Operating Officer
30 years’ experience in mine management of underground and surface mines and project management of mine and heavy civil construction in Canada, USA, and Africa. Recent experience includes planning and building Shafter Silver Mine, TX.
Rich Histed, BA Geo. Manager, USA
30 years’ experience in exploration of precious metals and other commodities with Homestake Mining, Barrick Exploration USA, Golden Star Resources, North Mining and Reunion Gold. Nevada experience includes resource definition at Archimedes and belt-scale exploration for Barrick.
Knox Henderson, Manager, Investor Relations
20 years’ experience in investor relations and corporate communications. A journalism graduate with his Canadian Securities Course, formerly a trader on the Canadian equities markets.
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USA Operations
Nevada
Inset Map
Nev
ad
a
Uta
h
Significant Land Position in Proven Gold Belts Nevada - 1,200 km2
Newmont Earn-in (Fronteer Gold, 11 Properties) – 234 km2
December 16, 2010
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WKM can earn up to 51% in all 11 properties by spending $15,400,000 over four years
$2,000,000 in year one, $3,000,000 in year two (completed)
After year two, WKM can allow projects to drop off and continue earn-ins on project-specific basis
WKM can increase interest to 60% with aggregate spend on any property (including TUG) of $4,000,000 or a Prefeasibility on specific projects
TUG as of March. 2013: $3,400,000 spent ($1,800,000 for 51%), additional $600,000
for WKM to earn 60% (April 2013)
Significant Land Position in Proven Gold Belts
Rubicon Earn-in - 952 km2
June 27, 2011
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Significant Land Position in Proven Gold Belts
WKM can earn 51% in portion of property across the valley north east of the Long Canyon Deposit by spending $15,000,000 in 4 years
WKM has completed the first year’s expenditure, Phase 1 drilling completed
WKM can increase earn up to 60% interest in “Class A” properties with additional $4,000,000 or a Prefeasibility study
Annual Period
Annual Minimum of Exploration and Development Expenses
Aggregate Exploration and Development Expenses
1st year $2,000,000 (completed) $2,000,000
2nd year $3,000,000 (due Dec. 31, 2013) $5,000,000
3rd year $5,000,000 (due Dec. 31, 2014) $10,000,000
4th year $5,000,000 (due Dec. 31, 2015) $15,000,000
Nevada – Long Canyon
Long Canyon
Gold Deposit
Toano
Lewis Spring
Bandito
TUG
KB
Uta
h
20 Km
10 Mi
Newmont Mineral Interests
60% WKM
40% Rubicon
60% WKM
40% Newmont, Others
51% WKM
25% Newmont
24% Rubicon
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60% WKM, 40% RMX
51% WKM, 25% NMC, 24% RMX
60% WKM, 40% NMC, Others
Newmont Mineral Interests 13
12 Mile
Other WKM/RMX Mineral Interests
TUG Resource
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Cut-Off
Tonnes1
Au g/t Ag g/t AuEq g/t Au Ounces Ag Ounces AuEq2
Ounces
*0.1 27,110,000 0.49 15.8 0.78 431,400 13,844,800 679,000
0.6 7,350,000 1.00 31.0 1.56 237,400 7,331,300 369,400
1 Reported at a cut-off grade of 0.1 g/t Au. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 2AuEq was calculated assuming 100% metal recovery using a metal price ratio between Ag and Au (Ag:Au)= 0.018 (AuEq= Au+(Ag*0.018) *Base case reported at a cut-off of 0.1 g/t Au Resource estimate completed by Jason Baker, P. Eng of Carcle Creek, May 29, 2012 an independent qualified person as defined by NI 43-101 Resources do not have demonstrated economic viability See detailed NI 43-101 report to be filed on SEDAR These figures are not to be misconstrued as mineral resource as they are intended for the sole purpose of demonstrating the sensitivity of the resource estimate with respect to reporting cut-off grade.
TUG Mineralization TUG Deposit
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Ground level
875 Meters
150 Meters
16 Source: Company records, rounded figures, includes inferred Au to Ag ratio of 1:55
TUG Comparables
(g/t) (x:1)
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TUG Advantages
At and near surface gold, all oxide
Well drilled deposit, 400+ holes
Good metallurgical database
Straight forward permitting (no federal land), quick timeline
No initial stripping, low overall strip ratio (estimate 2:1)
Excellent infrastructure (grid power, water, highway)
TUG –The Next Steps
Metallurgical test work program in Q1-Q3 2013
In-pit Mineral Resource Estimate Q2-2013
Preliminary Economic Assessment Q2-2013
Permitting Q1-Q4 2013
Board decision to fund mine construction Q2-2013
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TUG Timeline of Activities
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TUG Conceptual Surface Layout
0
10
20
30
40
50
60
70
80
90
1002 3 9 9 10 15 21 21 23
Utah: A mining friendly jurisdiction
UTAH
TOTAL
21 * Source: 2011/2012 Fraser Institute Survey of Mining Companies (93 global jurisdictions ranked)
Utah: a mining friendly jurisdiction
District Scale Targets
High Au in
Stream Sediments
60% WKM, 40% RMX
51% WKM, 25% NMC, 24% RMX
60% WKM, 40% NMC, Others
Newmont Mineral Interests
TUG Deposit
Bandito Lewis Spring
TUG
KB
16 Km to Long Canyon Deposit
2 Miles
12 Mile N
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Toano
Patterson
Pass
Exploration Targets: 12 Mile
Near and Like TUG Start Point
Located 10 km west of TUG
Possible additional feed to TUG operation
Action
Drilled 7 holes in 2012, TUG equivalent grades encountered at shallow depths
Only southern eastern corner of property explored to date
Additional targets along strike
7 holes drilled in March 2013, assays pending
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Long Canyon
Gold Deposit
12 Mile TUG
Uta
h
5 Kms
12 Mile Geology
TUG
12 Mile TUG Deposit
5 Kms
Area Enlarged
TUG
12 Mile TUG Deposit 12 Mile Geology
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Uta
h
Hole ID From (m) To (m) Length (m) Au g/t Ag g/t
12M12-001 67.06 77.72 10.66 0.34 1.03
and 88.39 96.01 7.62 0.23 0.67
and 99.06 108.2 9.14 0.31 0.75
12M12-002 0 12.19 12.19 0.31 0.75
and 123.44 128.02 4.58 0.19 0.24
and 131.06 135.64 4.58 0.21 0.06
12M12-003 0 22.86 22.86 0.35 1.12
including 10.67 15.24 4.57 0.52 1.14
12M12-004 7.62 25.91 18.29 0.44 1.67
including 12.19 18.29 6.1 0.72 2.19
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12 Mile Drill Results
Nevada - Lewis Spring
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TUG
KB
12 Mile
Bandito
Lewis Spring
Elevated Gold
In Streams
Toano Long Canyon
Gold Deposit
Start Point
– 53 Km2 stream anomaly
WKM Work
– WKM 5,552 soils
– Detailed mapping
– Staking of additional 43.65 km2
– Newmont airborne survey
Results and Plans
– Multiple soil anomalies, over kilometers
– up to 1.1 g/t Au in soils
– Detailed drill targets
– Permits received, pads constructed
– 7 holes drilled March 2013, assays pending
Uta
h
12 Mile Geology Lewis Spring Geology
Area Enlarged
TUG
5 Kms
TUG Deposit
Elevated Gold
In Streams
1.1 g/t Au
in soil
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TUG
KB
12 Mile
Bandito
Lewis Spring
Toano Long Canyon
Gold Deposit
Nevada Regional Targets: Bandito
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Start point
– Previous work identified several major structures with associated Au & As in unfavourable host rock
– Previous drilling did not test underlying Diamond Peak / Guilmette contact
– Numerous deposits in northeastern Nevada are hosted at upper contact of Guilmette
– Structural corridor 80m x 450m, with up to 10 g/t Au in rock
Action
– WKM to test structure and contact at depth
– 4 holes drilled in March 2013, assays pending
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Bandito Area Drilling Bandito Plan View
g/t Au
Proven strategy and team in the Long Canyon Trend
Long Canyon Trend demonstrated large scale potential (Newmont takeover of Fronteer)
Solid value with gold resource defined and engineering advancing
Multi target drilling now on 1,000 km2 land position
Great upside potential for investors
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WKM – Summary
For More Information
R. Michael Jones Michael G. Allen
President & CEO VP, Exploration
Office: 604 685-8311 Office: 604 628-4709
[email protected] [email protected]
Knox Henderson
Investor Relations
Office: 604 628-4717
Updated: 13/04/11 31