WEST Vault Mining Files ON SEDAR a Hasbrouck GOLD Project Pre-Feasibility Study Update with a 51% IRR
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News Release No. 149-2023
March 8, 2023
WEST VAULT MINING FILES ON SEDAR A HASBROUCK GOLD PROJECT
PRE-FEASIBILITY STUDY UPDATE WITH A 51% IRR
VANCOUVER, BRITISH COLUMBIA, March 8, 2023 – West Vault Mining Inc. (“West Vault” or the
“Company”) (TSXV:WVM, OTCX:WVMDF) is pleased to announce filing on SEDAR 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.
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 t he mine plan, mineral processing, and Mineral
Resource and Mineral Reserve Statements are substantially unchanged from the 201 6 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. 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
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Infrastructure Water and water-rights obtained, nearby grid power, nearby
highway access
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.
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Project Highlights – (US dollars)
Three Hills Hasbrouck Total Hasbrouck
Mine Mine Project
PROJECTED HEADGRADE oz Au/ton - g Au/t 0.018 - 0.62 0.017 - 0.58 0.017 - 0.59
Ore million tons 10 34 44
Annual Ore million tons 5 6 6
Processing Rate tons per day 15,000 17,500 15,892
Stripping Ratio waste:ore 0.9 1.2 1.1
Contained Metal
Gold Grade oz Au/ton - g Au/t 0.018 - 0.62 0.017 - 0.58 0.017 - 0.59
Silver Grade oz Ag/ton - g Ag/t NA 0.306 - 10.48 0.239 - 8.18
AuEq Grade (1) oz AuEq/ton - g AuEq/t 0.018 - 0.62 0.018 - 0.61 0.018 - 0.61
Gold kOz 175 578 753
Silver kOz NA 10,504 10,504
AuEq (1) kOz 175 610 785
Recoverable Metal
Gold Recovery % 83% 72% 75%
Silver Recovery % 18% 18%
Gold kOz 144 417 561
Silver kOz NA 1,918 1,918
AuEq ($1,275/$18.21) kOz 144 441 585
Average Annual Gold Production kOz 71 69 70
Averge Annual Silver Production (2) kOz NA 319 319
Average Annual AuEq Production kOz 71 73 74
Gold Price US$/oz $1,790 $1,790 $1,790
Silver Price US$/oz $22.50 $22.50 $22.50
CAPITAL
Initial Capex US$ million $66
Growth Capex US$ million $123
Sustaining Capex US$ million $33
LOM Capex US$ million $222
Contingency (included) US$ million $8 $24 $32
Contingency (included) % 13% 19% 17%
Working Capital (included in Initial Capex) US$ million
FUNDING
Funding Requirement (at year -1) US$ million $66
Free Cash Flow from Three Hills US$ million $159
Funding Requirement (at year 1) (3) US$ million -$32
Total Funding Requirement US$ million $34
Adjusted Operating Cost per Ton of Ore (3) US$/ton ore $9.81 $10.08 $10.02
Mining US$/ton ore $3.83 $4.20 $4.12
Processing US$/ton ore $3.33 $5.04 $4.67
G&A US$/ton ore $0.71 $0.46 $0.52
Other (4) US$/ton ore $1.94 $0.38 $0.72
Adjusted Operating Cost (3) US$/oz Au net of by-products $656 $831 $786
All-in Sustaining Cost (5) US$/oz Au net of by-products $701 $938 $877
All-in Cost (6) US$/oz Au net of by-products $1,125 $1,232 $1,205
Mine Life year 2 7 9
NPV (5%) - after tax US$ million $206
IRR - after tax % 51%
Payback Period year 2.9
Units
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Notes:
(1) Gold equivalent calculations are made using the ratio of recovered silver / gold and metal prices.
(2) Silver production is averaged over the Hasbrouck mine life only.
(3) Difference between Funding and Capex from free cash flow from Three Hills Mine.
(3) World Gold Council – Adjusted Operating Costs include:
On-site mining and G&A, royalties and production taxes, permitting and community cost related to current operations,
3rd party smelting, refining and transport costs, stock-piles and inventory write-downs, site-based non-cash
remuneration, operational stripping costs and by-product credits.
(4) Other category includes royalties, production taxes, permitting, refining and by-product credit.
(5) World Gold Council All-in /Sustaining Costs includes:
Adjusted Operating Costs (above) plus corporate G&A, reclamation & remediation – accretion & amortization,
expenditures sustaining exploration and study costs, capital exploration, capitalized stripping and sustaining capital.
(6) World Gold Council All-in Cost include:
All-in Sustaining Costs (above) plus community, permitting and reclamation and remediation costs not related to current
operations and non-sustaining exploration and study costs, capital exploration, capitalized stripping and capital
expenditure.
(7) The $1,790/oz gold price represents the three-year trailing average gold price at 17 January 2023.
Sensitivity to Gold Price
Outlook
West Vault is committed to maximizing shareholder value through its low-risk gold-in-ground strategy,
which involves acquiring, advancing, and holding high-quality development gold projects in the best
jurisdictions.
Authors and Qualified Persons Statement
The Technical Report was authored by RESPEC and was prepared in conformance with National
Instrument 43 -101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). Technical work,
analysis, and findings were completed by Thomas L. Dyer, P.E., and Jeff Bickel , C.P.G. both of
RESPEC, Reno, with contributions by Mark Jorgensen, SME, of JE&TS (metallurgy), Ryan Baker,
P.E., of NewFields (civil and heap leach) and Carl Defilippi, SME, of KCA (process design). Each
After Tax Sensitivity - Metal Price (US$000)
Gold Price NPV 5% IRR
$1,000 -$104,062 n/a
$1,200 -$22,598 -3%
$1,400 $56,585 20%
$1,600 $134,071 37%
$1,790 $206,159 51% BASE CASE
$2,000 $285,127 67%
$2,200 $358,994 82%
$2,400 $432,100 96%
$2,600 $503,418 110%
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person is a “Qualified Person” under NI 43-101 and has reviewed and approved the information in this
news release relevant to the portion of the Technical Report for which they are responsible. Each
Qualified Person noted above has reviewed and approved the scientific and technical content in this
news release relating to the Technical Report. West Vault will file the Technical Report on SEDAR in
support of the technical disclosures made in this news release within 45 days.
Sample Preparation, Analyses, and Security
It is RESPEC’s opinion that the sampling, assaying, and security procedures used at Three Hills and
Hasbrouck deposits follow industry standard procedures, and are adequate for the estimation of the
current Mineral Resource and Mineral Reserve and for use in preparing the Technical Report.
Data Verification
RESPEC completed audits of the database, performed a site visit, reviewed quality assurance and
quality control data and confirmed historic assays. After performing their review, they consider the
assay data to be adequate for the estimation of the current Mineral Resource and Mineral Reserve
and for use in preparing the Technical Report.
About RESPEC
Based in Rapid City, South Dakota, RESPEC is a global leader in diverse technologies and draws
from a wide array of expertise, products, and services to deliver world -class solutions for business,
mining, energy, water, natural resources, urban development, infrastructure, and enterprise services.
Qualified Person
Sandy McVey P.Eng., Chief Executive Officer and Chief Operating Officer for the Company, as a non-
independent Qualified Person as defined in NI 43 -101, has reviewed and approved the technical
information disclosed in this news release.
On behalf of the Board of West Vault Mining Inc.
Sandy McVey, P.Eng., MSc, PMP
CEO & COO
For further information please see the Company’s website at www.westvaultmining.com or contact us
by email at [email protected].
Investor enquiries:
Sandy McVey
(604) 685 8311 / [email protected]
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Hasbrouck Gold Project Mineral Resources
Mineral Resources are reported inclusive of Mineral Reserves.
Hasbrouck Deposit Reported Mineral Resources* December 15, 2022,
(0.007oz AuEq/ton Cutoff)
Class K Tons oz Au/ton K oz Au oz Ag/ton k oz Ag
Measured 6,987 0.019 134 0.39 2,752
Indicated 35,041 0.015 516 0.27 9,404
M+I 42,028 0.015 651 0.29 12,156
Inferred 5,161 0.011 56 0.19 986
Three Hills Deposit Reported Mineral Resources* December 15, 2022,
(0.005oz Au/ton Cutoff)
Class K Tons oz Au/ton K oz Au
Indicated 10,423 0.018 185
Inferred 1,008 0.017 17
Notes:
(1) All estimates of Mineral Resource have been prepared in accordance with NI 43-101 standards.
(2) Mineral Resource for the Hasbrouck deposit is estimated using a gold equivalent 0.007oz AuEq/ton cut -
off grade inside an optimized pit shell that was created using a gold price of $1,850/oz gold and $22.75/oz
silver, a mining cost of $2.39/ton mined, a processing cost of $4.81/ton processed, a lithologic- and depth
dependent recovery equation provided by Mr. Mark Jorgenson, G&A cost of $0.36/ton processed, and a
2.38% NSR royalty (note the project cash -flow analysis uses 3 -year trailing average prices of $1,790/oz
gold and $22.50/oz silver as off January 17, 2023).
(3) The Hasbrouck gold equivalent cutoff grade utilizes the following formulas:
1. Oz AuEq/ton = oz Au/ton + (oz Ag/ton x AuEqFactor)
2. AuEqFactor = (Au Price / Ag Price) x (Au Recovery / Ag Recovery)
3. Upper Siebert Formation: oz AuEq/ton = oz Au/ton + (oz Ag/ton x 0.0053)
4. Lower Siebert Formation: oz AuEq/ton = oz Au/ton + (oz Ag/ton x 0.0027)
(4) Mineral Resource for Three Hills deposit is estimated using a 0.005oz Au/ton cut -off grade inside an
optimized pit shell created using a gold price of $1,850 per ounce, a mining cost of $2.39/ton mined, a
processing cost of $2.98/ton processed, a grade -dependent recovery equation provided by Mr. Mark
Jorgenson, G&A cost of $0.42/ton processed, and a 2.38% NSR Royalty.
(5) Rounding as required by reporting guidelines may result in apparent discrepancies between tons, grades,
and contained metal content.
(6) The Mineral Resource has been prepared by Jeff Bickel, C.P.G of RESPEC in conformity with CIM
“Estimation of Mineral Resource and Mineral Reserve Best Practices” guidelines as required by Canadian
Securities Administrators NI43 -101. Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all Mineral Resources will be converted into
Mineral Reserves . These Mineral Resource estimates include Inferred Mineral Resources that are
considered too speculative geologically to have economic considerations applied to them that would
enable them to be categorized as Mineral Reserves. It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued
exploration.
(7) The effective date of the Mineral Resource Estimate is December 15, 2022.
(8) The Mineral Resource Estimate may be materially affected by geology, environment, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant issues.
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(9) RESPEC is not aware of political, environmental, or other risks that could materially affect the potential
development of the Mineral Resources.
Hasbrouck Gold Project Mineral Reserves
Proven and Probable Reserves total 44.0 million tons containing 753,000 ounces gold and 10.5 million
ounces silver as detailed below:
Hasbrouck Gold Project Reserves, January 11, 2023, RESPEC (1, 2)
K tons
Ore
Grade
(oz Au/ ton)
K oz Au Grade
(oz Ag/ton)
K oz Ag
Three Hills Mine Reserves
0.005 opt
Au cutoff
Proven - - - - -
Probable 9,653 0.018 175 - -
P&P 9,653 0.018 175 - -
Hasbrouck Mine Reserves
Variable
cutoff grade (3)
Proven 6,130 0.021 126 0.417 2,558
Probable 28,239 0.016 452 0.281 7,946
P&P 34,370 0.017 578 0.306 10,504
Total Hasbrouck Gold Project
Variable
cutoff grade (3)
Proven 6,130 0.021 126 0.417 2,558
Probable 37,893 0.017 627 0.210 7,946
P&P 44,023 0.017 753 0.239 10,504
Notes:
(1) The estimation and classification of Proven and Probable Mineral Reserves have been prepared by
Thomas L. Dyer, P.E., of RESPEC following CIM standards effective 17 January 2023.
(2) Mineral Reserves are estimated based on previously designed pits which have been validated using
$1,750/oz gold and $21.50/oz silver (note the project cash-flow analysis uses 3-year rolling average prices
of $1,790/oz gold and $22.50/oz silver)
(3) Three Hills Mine c utoff grade used for Mineral Reserves is 0.005 oz Au/ton and are based on a grade
dependent recovery equation for gold provided by Mr. Mark Jorgensen
1. Recgold = min(0.925, (0.1786 times ln (grade in opt) + 1.5203) – 0.0025)
(4) Hasbrouck Mine Mineral Reserves use a variable gold recovery based on material in Upper Siebert and
Lower Siebert along with depth below topo
1. Upper Siebert: Recgold = (0.0009 times (Depth below topo in feet)) + 0.3026 + 0.10
2. Lower Siebert: Recgold = (0.0002 times (Depth below topo in feet)) + 0.6412 + 0.05
(5) Hasbrouck Mine Mineral Reserves silver recovery uses a constant 24% for Upper Siebert and 17% for
Lower Siebert
(6) Hasbrouck Mine Mineral Reserves use a gross metal value (“GMV”) cutoff grade of $5.17/ton which
includes the cost for processing and G&A
(7) Mineral Resources are reported inclusive of Mineral Reserves
(8) The Inferred Mineral Resource does not contribute to the financial performance of the project and is treated
in the same way as waste
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Glossary
NI 43-101 - National Instrument 43-101 Standards of Disclosure for Mineral Projects
k - thousand
koz - thousand ounces
NPV(5%) - net present value at a five-percent discount rate
IRR - internal rate of return
G&A - general and administrative (costs)
Compliance with NI 43-101 and Cautionary Statement on Mineral Resources and Reserves
The information in this news release has been summarized from the Technical Report and Updated
Preliminary Feasibility Study: Hasbrouck and Three Hills Gold -Silver Project, Esmeralda County,
Nevada – RESPEC, January 2023, currently being prepared by Thomas L. Dyer, P.E., and Jeff Bickel,
C.P.G. of RESPEC, Reno, with contributions by Mark Jorgensen, SME, of JE&TS (metallurgy), Ryan
Baker, P.E., of NewFields (civil and heap leach) and Carl Defilippi, SME, of KCA (process design).
Each aforementioned person is a "Qualified Person" under NI 43-101, is independent of West Vault
and has reviewed and approved the information in this presentation, as of the time that the Technical
Report was produced and as relevant to the portion of the Technical Report for which they are
responsible. RESPEC has reviewed and verified the data disclosed in this news release to be in
conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best
Practices” guidelines as of the time of the Technical Report as required by NI 43-101. For readers to
fully understand the information in this news release, they should read the Technical Report when
available on www.sedar.com or at www.westvaultmining.com in its entirety, including all qualifications,
assumptions, and exclusions that relate to the information set out in this news release that qualify the
technical information contained in the Technical Report. The Technical Report is intended to be read
as a whole, and sections should not be read or relied upon when taken out of the context of the full
Technical Repo rt. The technical information in this presentation is subject to the assumptions,
qualifications, and exclusions contained in the Technical Report.
Non-IFRS Reporting Measures
"Cash Costs", “All-in Sustaining Costs” and “All-in Costs” are not Performance Measures reported in
accordance with International Financial Reporting Standards (“IFRS”). These performance measures
are included because these statistics are key performance measures that management uses to
monitor performance. Management uses these statistics to assess how the Project ranks against its
peer projects and to assess the overall effectiveness and efficiency of the contemplated mining
operations. These performance measures do not have a meaning within IFRS and, therefore, amounts
presented may not be comparable to similar data presented by other mining companies. These
performance measures should not be considered in isolation as a substitute for measures of
performance in accordance with IFRS.
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: “will”, “will come from”, “forecast”, “believe”,
“eliminating”, “means”, “should benefit”, “would benefit”, “will benefit”, “validates”, “thesis”, “reflecting”,
“exploration potential”, “expansion potential”, “potential to increase and extend”, “highlighted”,