WEST Vault Acquires 100% Ownership Interest IN the Hill of GOLD Property and Extinguishes 2% NSR Royalty
SUITE 838 – 1100 MELVILLE STREET, VANCOUVER, B.C. CANADA V6E 4A6 TEL: 604-685-8311 FAX: 604-484-4710 WWW.WESTVAULTMINING.COM
News Release No. 134-2021
February 2, 2021
WEST VAULT ACQUIRES 100% OWNERSHIP INTEREST IN THE HILL OF GOLD PROPERTY
AND EXTINGUISHES 2% NSR ROYALTY
VANCOUVER, BRITISH COLUMBIA, February 2, 2021 – West Vault Mining Inc. (W VM:TSXV)
(“West Vault” or the “Company”) announces its buyout of the Hill of Gold property (the “Hill of Gold
Property”) in exchange for a one-time payment of US $250,000. The Hill of Gold Property is located
approximately 3.5 miles southwest of Tonopah, Nevada , midway between the Company’s 100%
owned Three Hills Mine property and Hasbrouck Mine property (together the “Hasbrouck Gold
Project”). The Company is finalizing permitting the Hill of Gold open pit for mineralized material to be
hauled 2 miles to the already-permitted Three Hills Mine heap leach facility.
Hill of Gold hosts a non-current historical inferred resource estimate of 42,350 gold ounces (1.6 million
tons at a grade of 0.9 g/t (0.025 ounce per ton), pit-constrained at 0.3 g/t cut-off grade (0.01 ounce per
ton)) (the “HOG Historical Estimate”) which was prepared in 1996 by Scott Hardy P.E and Steven
Ristorcelli, P.Geo, both of Mine Development Associates. The Hill of Gold property comprises 25
mining claims on approximately 500 acres of unpatented land.
The HOG Historical Estimate is based on 29,926 feet of drilling from 83 reverse circulation holes and
6 core holes. The Hill of Gold host rock and geological setting are similar to those found at the nearby
Three Hills deposit. Three metallurgical studies indicate 67% to 74% recovery from run -of-mine
material.
On November 29, 2016 , the Company announced the execution of a ten -year Mineral Lease and
Option to Purchase Agreement (the “HOG Lease”) for a 100% interest in the Hill of Gold Property.
The terms of the HOG Lease allowed for mining and required annual lease payments as pre-payments
on a 2% net smelter return (“NSR”) royalty of US$25,000 for the first three years and thereafter
US$30,000 per year, with the option of buying the mining claims and royalty for US$500,000 at any
time during the lease term. The Company negotiated and paid the one-time US$250,000 buyout
payment to extinguish future lease and royalty payments due to the property lessor, which buyout
payment represents a 50% discount to the previously agreed buyout price.
The HOG Historical Estimate is relevant due to its proximity to and thus potential economic impact on
the proposed Three Hills Mine.
Key assumptions used to develop the HOG Historical Estimate include modeling using Medsystem
software using geological interpretations provided by Eastfield Resources and Prism Resources. The
assay database was composited in 10 ft bench composites which were then coded with the
appropriate zone number. A block model was constructed, and block grades were estimated using
ordinary kriging. Blocks within a zone were estimated using only the composites within the zone. The
Company considers the HOG Historical Estimate to be reliable in light of the method in which it was
calculated.
The work required to upgrade the HOG Historical Estimate to a current mineral resource involves
drilling to twin a percentage of historical boreholes to confirm historical results, drilling to define the
limits of mineralization and provide better control on grade variability and identify geologic
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SUITE 838 – 1100 MELVILLE STREET, VANCOUVER, B.C. CANADA V6E 4A6 TEL: 604-685-8311 FAX: 604-484-4710 WWW.WESTVAULTMINING.COM
characteristics of high-grade intervals, and perform test work to better characterize the metallurgical
aspects of the deposit.
A qualified person has not done sufficien t work to classify th e HOG Historical Estimate as current
mineral resources or mineral reserves, and the Company is not treating the HOG Historical Estimate
as current mineral resources or mineral reserves.
Qualified Person
R. Michael Jones P.Eng ., Chief Executive Officer for the Company, as a non-independent Qualified
Person as defined by National Instrument 43 -101 - Standards of Disclosure for Mineral Projects (“NI
43-101”), has reviewed and approved the technical information disclosed in this news release.
About West Vault Mining Inc.
West Vault is focused on advancing the Hasbrouck Gold Project in Tonopah, Nevada. The Company
owns 100% interest in, and a 1.1% NSR royalty over, the Hasbrouck Gold Project.
On behalf of West Vault Mining Inc.
“R. Michael Jones”
Chief Executive Officer
For further information please see the Company’s website at www.westvaultmining.com or contact us
by email at [email protected].
Investor Relations:
R. Michael Jones
(604) 685 8311 / [email protected]
Disclaimer for Forward-Looking Information
This press release may contain forward-looking information or forward-looking statements (collectively
"forward-looking information") within the meaning of applicable securities laws. 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.
Forward-looking information in this news release includes, without limitation, Hasbrouck Gold Project
permitting and cost projections. Although West Vault believes that such information as set out in this
press release is reasonable, it can give no assurance that such expectations and estimates will prove
to be correct. 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 the
following: risks related to the novel coronavirus (COVID -19) global health pandemic , other global
epidemics, pandemics or public health crises ; 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;
significant increases in any of the machinery, equipment or supplies required to develop and operate
a mine; a significant change in the availability or cost of the labor force requi red to operate a mine; a
significant increases in the cost of transportation for the Company’s products; variations in the nature,
quality and quantity of any mineral deposits that may be located; and 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
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SUITE 838 – 1100 MELVILLE STREET, VANCOUVER, B.C. CANADA V6E 4A6 TEL: 604-685-8311 FAX: 604-484-4710 WWW.WESTVAULTMINING.COM
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 the Use of Mining Terms
This press release has been prepared in accordance with the securities laws in effect in Canada,
which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all reserve
estimates reported by the Company are in relation to a 2016 Updated Pre-Feasibility Study and have
been prepared in accordance with NI 43 -101 and the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43 -101 is a rule
developed by the Canad ian Securities Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information concerning mineral projects.
Canadian standards, including NI 43 -101, differ significantly from the requirements of the U.S.
Securities and Exchange Commission (the “SEC”) Industry Guide 7, and reserve information
contained herein may not be comparable to similar information disclosed by U.S. companies. In
particular, and without limiting the generality of the foregoing, “reserves” established under NI 43-101
standards may not qualify as “reserves” under U.S. standards. Under U.S. standards, mineralization
may not be classified as a “reserve” unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time the reserve determination is made.
In addition, under U.S. standards, a “Final” or “Bankable” feasibility study is required to report reserves,
the three -year historical average price is used in any reser ve or cash flow analysis to designate
reserves and the primary environmental analysis or report must be filed with the appropriate
governmental authority. Disclosure of “contained ounces” in a resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits issuers to report mineralization that
does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to
unit measures. Accordingly, information concerning mineral deposits set forth in t his press release
may not be comparable with information made public by companies that report in accordance with
U.S. standards.
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.