West Mining Corp C.WEST

West Mining Corp. Announcement

[johnnygoldminer]

West Mining Corp. Announces a gold resource of 2,773,000 oz inferred and 561,000 oz indicated on its 100% owned Kena project

 

MAY 11th, 2021 - VANCOUVER, B.C. - WEST MINING CORP. (“WEST” OR THE “COMPANY”) (CSE: WEST) (OTC: WESMF) (FRA: 1HL) is pleased to announce the completion of an updated NI43-101 Technical Report on its 100% owned Kena and Daylight Properties, collectively known as the Company’s flagship “Kena” Gold and Copper Project, located in the Nelson Mining District of southeastern British Columbia. This Report was completed by Moose Mountain Technical Services (“Moose Mountain” or “MMTS”) and highlights over 2,773,000 ounces of gold in the inferred category as well as over 561,000 ounces of gold in the indicated category.

Mineral Resource

The Table below summarizes the Total Mineral Resource estimate for the Kena Project.  The base case cut-off grade within the “reasonable prospects of eventual economic extraction” constraining pit is 0.25 g/t gold (Au), as highlighted in Table 1.

 

TABLE 1: MINERAL RESOURCE ESTIMATE (effective date March 25, 2021)

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Notes for Tables 1 and 2:

1.The Mineral Resource estimate has been prepared by Sue Bird, P.Eng., an independent Qualified Person.

2. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.

3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

4. The Mineral Resource has been confined by a “reasonable prospects of eventual economic extraction” pit using the following assumptions: US $2000/oz. Au at a currency exchange rate of 0.77 US$ per $CDN; 99.95% payable Au, 96.5% payable Cu; $4.30/oz Au offsite costs (refining, transport and insurance), 0.467 Cu offsite; a 3% NSR royalty; and uses a 88% metallurgical recovery for gold for all areas and 85% recovery for Cu in the Cu zone only.

5. Pit slope angles are assumed at 45º.

6. The specific gravity of the deposit has been assigned as 2.8 based on sg measurements in the Kena deposit.

7. Numbers may not add due to rounding.

The QP is not aware of any other  factors or issues that materially affect the Mineral Resource estimate other than normal risks faced by mining projects in the province in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors and additional risk factors as listed in the “Cautionary Note Regarding Forward-Looking Information” section below.

“With over 2,773,000 oz Au Inferred and over 561,000 oz Au Indicated and an economically viable cut off of 0.25 g/t gold, this updated resource is tremendous news for the shareholders and the Company,” stated Nicholas Houghton President and CEO. “With the continuation of the anomaly defined by our recent geophysical survey of the Kena Southern zone not assimulated into the Report, the area hosting the Indicated and Inferred resource represents only a portion of the expansive Kena project.  As the resource remains open at depth and along strike, the Company is fully financed and excited for the upcoming field season and potential of this year’s drill program.”

The Kena Project consists of 5 deposit areas including the Kena Gold, Gold Mountain, Daylight, Great Eastern/Western and Kena Copper Zone.  This Resource estimate is based on Ordinary Kriging of Au grades capped at values between 0.3 g/t Au and 40 g/t Au and outlier restriction of Au grades during interpolation at values of 10 g/t depending on the area and domain.  Blocks were assigned preliminary Classifications of Indicated based on the average distances to at least two drillholes to be less than 30m. Two solids in constrained areas of the Kena Gold and Gold Mountain area were defined based on this criteria. Blocks within this solid, are classified as Indicated. The distance of 30m is based on the R80 value from the variography; as the range at approximately 80% of the sill. All other blocks that have an interpolated Au grade within the Kena and Daylight deposits are defined as Inferred. Blocks within the Copper Zone and Great Eastern and Great Western deposits are currently considered un-classed and not included in the final Resource estimate.

The total drilling to date on the Kena Property is 252 holes totalling 39,819.19 metres.  The Mineral Resource is estimated from 221 drill holes within the Kena, Gold Mountain and Daylight areas having a total of 31,641.54 metres of Au assays.  Data prior to 1984, consisting of 4 percussion holes, was not used in the interpolations.  Historic assays have been validated by check assays on 12 core samples collected in 2021.  Verification of data lacking QAQC was done statistically using point validation to compare Au grades to adjacent assays.  Both methods indicate no bias in the historic data used.  Significant confirmation work has been completed in 2021 to verify the assay database with the certificates and drill logs.

 Table 2 is the Total Resource and includes a range of Au cut-off grades to show the sensitivity of the resource estimate to variations in cut-off grade, with the base cutoff highlighted.  At a 0.25 g/t Au base cut-off, the total Indicated Mineral Resource is estimated at 32.1 Mt at 0.544 g/t Au, for a total of 562 Koz of gold and the Inferred Mineral Resource is estimated at 177.5 Mt at 0.486 g/t Au, for a total of 2,773 Koz of gold.

 

TABLE 2:  SENSITIVITY OF THE TOTAL RESOURCE ESTIMATE TO CUTOFF GRADE (effective date March 25, 2021)

A gold price of US$1800/oz and a processing cost of $14.00/t requires a Au grade of approximately 0.25 g/t. Therefore, a cut-off of 0.25g/t Au is considered appropriate for current gold prices.  An open pit created using Lerchs–Grossmann (LG) pit optimization has been done on a series of pits with varying price assumptions (see Table Note 4).  The pit size is larger than that used for the cutoff grade in order to ensure that all material with a “reasonable prospect of eventual economic extraction” is included.  Constant pit slopes at 45º were used for the Resource pit.

Figures A, B and C show the Kena and Gold Mountain Zones in plan and section views with the confining pit shape also shown.  On the sections, the drillhole data shown is ±30m of the section.

FIGURE A:  Plan View of the Classification, the Drill Pattern, and the Resource Pit (Source, MMTS, 2021)

Moose Mountain recommends that a drilling program be conducted in two phases one exploring targets on the Daylight portion of the property and the other on the Kena side.  Phase 2 is not contingent upon the results of the Phase 1 as the phases target separate zones.  In Phase 1, up to twelve short step-out diamond drillholes will test the Starlight Vein system and two fences of six to eight holes drilled in the Great Western area to expand on previously identified intrusive related gold mineralization in that zone.  Phase 2 consists of diamond drilling on the Kena portion of the property with two priority target areas, the Kena Copper Zone with fifteen holes and the Gold Mountain-Kena Gold zone to build ounces and to potentially upgrade the Inferred resource into the Measured and Indicated categories. Total estimated cost of drilling is $1,165,000 CDN.

Moose Mountain also recommends that although the Resource database has been verified and is deemed acceptable, a robust check assay sampling program including QAQC samples be conducted using a certified laboratory comprising 5-10% of core for years for which drill core is available to compensate for missing certificates, lack of QAQC samples and potential bias noted in the 2012 drilling QAQC and 2001-2002 check assays.  It is also recommended that the assay database be amended to include silver and copper for all available samples from certificates.

The Company is fully financed to complete the recommended exploration program anticipated to commence before June 1st, 2021.

Linda Dandy, P.Geo., a “Qualified Person” for the purpose of National Instrument 43-101, has reviewed and approved the contents of this news release.