June 27, 2011
VANCOUVER, BRITISH COLUMBIA – West Kirkland Mining Inc. (WKM: TSX-V) ("West Kirkland" or the "Company") and Rubicon Minerals Corporation, (TSX:RMX, NYSE AMEX: RBY) ("Rubicon") have entered into an agreement whereby West Kirkland can earn a majority stake in mineral rights held by Rubicon covering approximately 351 square miles (909 sq. kilometers) in the Long Canyon Trend of north eastern Nevada, while allowing Rubicon to retain a significant interest in any future discovery.
Recent discoveries of gold by Fronteer Gold (now Newmont) and others at Long Canyon have resulted in a paradigm shift in the belt, opening up new potential for discovery of large scale gold deposits. Long Canyon is located along a north east structural setting in rocks only recently discovered to be favorable hosts for gold.
West Kirkland can earn a 51% interest from Rubicon in a portion of the Rubicon property package directly across the valley to the north east from the Long Canyon gold deposit. There are gold showings noted in historic work in this part of the overall property package, also there are unexplored north east trending structures, outside areas of historic exploration. These newly recognized structures are an immediate target for West Kirkland's planned exploration program.
Further to the north, West Kirkland can earn a 60% property interest in a portion of the Rubicon property package of the Long Canyon Trend adjoining the KB and TUG properties that are optioned by West Kirkland from Fronteer. The resulting consolidation of property interests provides a significant new opportunity. West Kirkland is currently drilling on the TUG property in the area of a shallow historic gold resource. Drilling is ongoing.
R. Michael Jones, President of West Kirkland said, "We now have the benefit of a newly recognized deposit setting in the best gold camp in the United States and an enormous land position to explore across. This transaction follows West Kirkland's approach to acquire large majority positions in known gold trends with new information where we can work these trends systematically. "
David Adamson, President and CEO of Rubicon said "We are pleased to see this large property portfolio well funded through this agreement and moved forward by a solid dedicated team at West Kirkland who has a considerable track record of discovery. This transaction allows us to maintain our focus in Red Lake while allowing us to retain a meaningful interest in any potential discovery on our properties in Nevada".
Details
West Kirkland can earn an initial 51% interest in any of the properties where Rubicon holds a 100% interest by making the expenditures outlined in the table below over four years and Rubicon will retain a 49% interest in the properties. The first year's expenditure is a firm commitment of $2,000,000.
West Kirkland can increase its interest to 60% by completing a pre-feasibility study or spending an additional $4,000,000 in exploration and development work, in which case Rubicon will retain a 40% interest in the properties. For properties in which Rubicon holds a 75% interest, West Kirkland is able to earn up to a 51% interest in such properties by making the outlined expenditures.
| Annual Period | Annual Minimum of Exploration and Development Expenses | Aggregate Exploration and Development Expenses |
| First Annual Period | $2,000,000 (firm commitment) | $2,000,000 |
| Second Annual Period | $3,000,000 | $5,000,000 |
| Third Annual Period | $5,000,000 | $10,000,000 |
| Fourth Annual Period | $5,000,000 | $15,000,000 |
West Kirkland is the project operator. Initial exploration will be targeted across the valley from Long Canyon and adjacent to the KB and TUG deposits. The property positions included in the Rubicon transaction are in the "checker board" of Nevada where each block of 1 square mile of property has another owner on the alternate one square mile square. As exploration progresses further consolidation of mineral rights may be required. Initial exploration will focus well within the owned blocks.
About West Kirkland Mining Inc.
West Kirkland is focused on large scale exploration for gold on known trends in Canada and the United States. The company has established mineral rights positions in Kirkland Lake Ontario and northern Nevada. Drilling is underway in both camps along trend from known gold mines.
The founders and Board of West Kirkland have successful gold discovery, development and mine operations experience in both Ontario and Nevada over the past 40 years.
About Rubicon Minerals Corporation
Rubicon Minerals Corporation is an exploration and development company, focused on exploring and developing its high-grade gold discovery at its Phoenix Project in Red Lake, Ontario. Rubicon controls over 100 square miles of prime exploration ground in the prolific Red Lake gold district of Ontario which hosts Goldcorp's high-grade, world class Red Lake Mine.
Qualified Person, Verification, Quality Control and Assurance
Michael G. Allen, P. Geo, is the non-independent qualified person for this news release. He has relevant experience in exploration and development projects in North America over the past twelve years.
For further information, please see the Company's website at www.wkmining.com or contact us by email at [email protected] or call:
West Kirkland Mining Inc.
R. Michael Jones, Michael Allen or Matthew Chandler at (604) 685-8311
Or
Sequoia Partners
Don Graham: 778-558-4310 or [email protected]
James Beesley: 778-389-7715 or [email protected]
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.
Disclaimer for Forward-Looking Information
This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding proposed exploration activities. 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 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.
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West Vault Mining Inc.
Suite 838 – 1100 Melville Street
Vancouver, BC
Canada V6E 4A6
[email protected]
Qualifying Statements
For readers to fully understand the information in this independent media, they should read the 2023 Pre-feasibility Study, which has been prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) (available on www.sedar.com), in its entirety, including all qualifications, assumptions, limitations and exclusions that relate to the information set out in this independent media. The 2023 Pre-feasibility Study is intended to be read as a whole, and sections should not be read or relied upon out of context. The technical information in this independent media is derived from, and subject to the assumptions and qualifications contained in, the 2023 Pre-feasibility Study.
Qualified Person for This Independent Media
Sandy McVey P.Eng., Chief Executive Officer and Chief Operating Officer for West Vault Mining, as a non-independent Qualified Person as defined in NI 43-101, has reviewed and approved the technical information disclosed in this independent media.
Disclaimer for Forward-Looking Information
This independent media may contain forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. All statements that are not statements of historical fact are forward-looking statements. Forward-looking statements in this email include, without limitation, statements regarding the potential economic performance of the Project based on the 2023 Pre-feasibility Study, the Company’s ability to obtain any additional permits required to commence and complete construction and perform operations, the Company’s ability to obtain funding on reasonable terms, and the potential identification, execution, and realization of accretive opportunities. Although West Vault Mining believes that such information as set out in this independent media is reasonable, it can give no assurance that such expectations and estimates will prove correct. West Vault Mining cautions investors that any forward-looking information provided by West Vault Mining is not a guarantee of future results or performance, and that actual results may differ materially from forward-looking information as a result of various factors. The reader is referred to West Vault Mining’s public filings for a more complete discussion of such risk factors and their potential effects; these may be accessed through the Company's profile on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Note to US Investors
This independent media has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are defined in and required to be disclosed by NI 43-101. However, these terms are not defined terms under SEC S-K 1300 and are normally not permitted to be used in reports and registration statements filed with the SEC. In addition, the terms “Mineral Reserve”, “Probable Mineral Reserve” and “Proven Mineral Reserve” are also defined in NI43-101 and not S-K 1300. Investors are cautioned not to assume that all or any part of an “Indicated Mineral Resource” or “Inferred Mineral Resource” will ever be upgraded to a higher category or converted into Mineral Reserves in accordance with S-K 1300. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of Feasibility or Pre-feasibility Studies, except in rare cases. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a Mineral Resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “Reserves” by SEC S-K 1300 standards as in-place tonnage and grade without reference to unit measures. Accordingly, information contained in this independent media contains descriptions of West Vault Mining’s mineral deposits that may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
