West Kirkland's TUG Gold Project Advances, Partner Elects to Acquire Mineral Rights

Thu Oct 18, 2012 4:05pm EDT

* Reuters is not responsible for the content in this press release.

  VANCOUVER, BRITISH COLUMBIA, Oct 18 (MARKET WIRE) --
West Kirkland Mining Inc. (TSX VENTURE:WKM) ("West Kirkland" or the
"Company") is pleased to announce that Newmont Mining Corporation
(TSX:NMC)(NYSE:NEM) ("Newmont") has exercised its rights under the
December 2010 Agreement between West Kirkland and Fronteer Development to
acquire 35% of certain private mineral rights for six sections of the TUG
property in Utah, which hosts a NI43-101 compliant gold/silver resource.
The rights were held by non-active third parties and this acquisition
converts the 35% into a participating interest held by Newmont within the
TUG option agreement. West Kirkland recently secured the rights and
Newmont then elected to acquire them under its area of interest rights in
the December 2010 agreement (Newmont acquired Fronteer Development on
April 18, 2011). West Kirkland continues to participate in an Exploration
and Development Agreement where they can earn up to a 60% interest over
all of the TUG deposit and would be the operator of the project. A
royalty of 1.4% net smelter return on the acquired property will be
payable.

    This transaction significantly consolidates the ownership of the TUG
deposit and allows the next stage of evaluation, engineering and
permitting of the TUG deposit to move forward.

    Under the terms of the December 2010 Agreement, West Kirkland can earn up
to a 60% interest in the TUG property by spending an aggregate of
$4,000,000 in exploration expenditures. After West Kirkland earns its
interest, the Company and Newmont have a one-time option to both
participate in the property on a pro-rata basis with each party
contributing funds based on ownership. Newmont also holds a 40% interest
in the balance of the sections over the TUG deposit. Newmont continues to
be a significant shareholder of the Company, with approximately 9.94% of
the issued and outstanding shares of West Kirkland.

    In addition, West Kirkland has notified Newmont the Company has completed
the first earn-in on the TUG property as defined by the December 2010
agreement. Newmont is required to register West Kirkland as a 51% title
holder of the TUG property. The Company has also notified Newmont of its
intention to complete its second earn in right, taking West Kirkland to a
60% interest in the TUG property. To complete its second earn in right,
the Company is required to spend an aggregate of $4,000,000 on the TUG
property. To date, West Kirkland has spent approximately $3,300,000 on
the TUG property and to complete its second earn in right, the Company
has to spend a further $700,000.

    West Kirkland is currently designing and permitting a drill program to
confirm and upgrade the TUG gold/silver resource and provide material for
metallurgical studies. This drill program will commence shortly. The
Company intends on completing a Preliminary Economic Assessment (PEA) on
the TUG deposit, based on a shallow open pit mine plan targeting the near
surface portion of the deposit.

    Concurrent with the PEA, West Kirkland will begin permitting a mining
operation on the TUG property. TUG has the advantage of being located
within the State of Utah where permitting on state lands is under the
oversight of the Department of Oil Gas and Minerals, which incorporates a
"one window" approach to permitting.

    TUG Property Details

    The TUG property is located in Box Elder County Utah. West Kirkland is
earning its interest in the TUG property through an option agreement with
Fronteer Gold (now Newmont). The TUG property hosts a shallow oxidized
gold resource that was extensively drilled by previous operators,
including Noranda, Phelps Dodge and Western States Minerals. Upon
optioning the property, West Kirkland completed the first
three-dimensional compilation of the historic data and expanded the
resource through drilling. West Kirkland completed the first NI 43-101
compliant resource estimate on the TUG deposit on May 29, 2012. The
inferred TUG resource was estimated by Caracle Creek International
Consultants to be 679,000 gold equivalent ounces contained in 27,110,000
tonnes grading 0.49 g/t Au and 15.8 g/t Ag using a cut-off 0.1 g/t Au.
For further information on the TUG resource please refer to the Company's
June 1, 2012 news release and the technical report filed with SEDAR.

    Company Focus

    The Company's focus in the United States is to expand and complement the
TUG gold deposit through regional exploration for near surface gold
deposits. The structural model for gold deposits in the Long Canyon Trend
has accelerated exploration in the area since the discovery of Newmont's
large scale Long Canyon deposit. The Long Canyon Trend is delineated by
the Long Canyon deposit in the south west and TUG deposit 65 kilometers
to the northeast. West Kirkland has the dominant land position between
the two deposits.

    Data, Verification, Quality Control and Assurance

    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. He is the non-independent
qualified person for the purpose of this news release.

    About West Kirkland

    West Kirkland was formed in 2010 to focus on gold exploration along major
trends in North America. The Company has consolidated significant 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 have successful
gold discovery, development and mine operations experience in both
Ontario and Nevada over the past 40 years.

    For further information, please see the Company's website at
www.wkmining.com.

    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.

    Cautionary Note to U.S. Investors Regarding Estimates of Inferred Mineral
Resources

    This press release 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.

    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.

Contacts:
West Kirkland Mining Inc.
R. Michael Jones
(604) 685-8311

West Kirkland Mining Inc.
Michael Allen
(604) 685-8311

West Kirkland Mining Inc.
Knox Henderson
(604) 685-8311
(604) 484-4710 (FAX)
info@wkmining.com
www.wkmining.com

Copyright 2012, Market Wire, All rights reserved.

-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.