West Vault Mining Announces 51% IRR Pre-Feasibility Study Update For Hasbrouck Gold Project

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Overig advies 24/01/2023 08:55
VANCOUVER, BRITISH COLUMBIA, January 23, 2023 – West Vault Mining Inc. (“West Vault” or the “Company”) (TSXV:WVM, OTCX:WVMDF) is pleased to announce the results of an independent NI 43-101 Pre-feasibility Study (“Technical Report”) prepared by USA-based engineering firm RESPEC Company LLC (“RESPEC”) for West Vault’s 100% owned Hasbrouck Gold Project located near Tonopah, Nevada. West Vault intends to file the Technical Report on SEDAR (www.sedar.com) within 45 days of this news release.

The Technical Report updates a September 2016 Pre-feasibility Study (“2016 PFS”), necessary because of the possible effect of increased capital costs, operating costs, and metal prices on project economics, and their combined effects on Mineral Resource and Mineral Reserve. After completion of the Technical Report, it has been determined that the mine plan, mineral processing, and Mineral Resource and Mineral Reserve Statements are substantially unchanged from the 2016 PFS. Exploration and expansion potential on the fully permitted project is highlighted.

The Technical Report was prepared by largely the same team that prepared the 2016 PFS, headed by RESPEC (formerly Mine Development Associates) of Rapid City, South Dakota, with contributions from Kappes, Cassidy & Associates, Reno (“KCA”), NewFields Mining Design & Technical Services (“NewFields”), Jorgensen Engineering & Technical Services (“JE&TS”), and Westland Engineering & Environmental Services (formerly EM Strategies).

The Hasbrouck Gold Project consists of the Three Hills and Hasbrouck Deposits plus a large land package, located near Tonopah, Nevada. All dollar values presented in this news release are in U.S. dollars.

2023 Technical Report Highlights (2016 PFS at $1,275 gold in brackets)

Project Status Permitted, construction-ready
NPV(5%) (after-tax, $1,790 gold) US$206 million (US$120 million)
IRR (after-tax, $1,790 gold) 51% (43%)
Initial Capital US$66 million (US$47 million)
Pay-back 2.9 years (3.1 years)
Recoverable Gold & Silver 561 koz gold (577 koz); 1,918 koz silver (1,163 koz)
All-in Sustaining Cost US$877 per gold ounce net of by-product credits (US$709)
Geology well-understood, +600 boreholes, all-oxide
Mining low 1.1:1 strip ratio, minimal pre-strip, above water table
Metallurgy 13 test programs, 75% average heap-leach gold recovery
Infrastructure Water and water-rights obtained, nearby grid power, nearby highway access

Sandy McVey, West Vault’s CEO, commented, “We are very pleased with the results of the Technical Report. Not only does it confirm that the project is strong economically, but more importantly it demonstrates how leveraged it is to the price of gold, going from 43% IRR in 2016 to 51% IRR now. This validates our thesis that our shareholders should benefit through their ownership of a high-quality project in an excellent jurisdiction and knowing that we will hold to our strategy of patiently letting the gold cycle do the work of increasing value, avoiding the risk of going to construction too early.”

Regarding expansion potential, there are a number of significant gold intercepts located proximal to current Mineral Resources, on strike from and below the proposed open pits that are not incorporated into the Technical Report Mineral Resource model. These intercepts show the potential to increase and extend the known Mineral Resource on West Vault’s property.

The Technical Report estimates a modest initial capital of US$66M for the Phase 1 Three Hills Mine. The Phase 2 Hasbrouck Mine is estimated to cost US$123M, and this money is planned to come from free cash flow generated at the Three Hills Mine. The Technical Report does not include mineralized material at the Company’s Hill of Gold property located between Three Hills Mine and Hasbrouck Mine.

Project Highlights – (US dollars)
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