West Vault pegs Hasbrouck NPV at $206-million (U.S.)

Jan 23, 2023

2023-01-23 12:19 ET – News Release

Mr. Sandy McVey reports

WEST VAULT MINING ANNOUNCES 51% IRR PRE-FEASIBILITY STUDY UPDATE FOR HASBROUCK GOLD PROJECT

West Vault Mining Inc. has released the results of an independent National Instrument 43-101 prefeasibility study prepared by U.S.-based engineering firm Respec Company LLC for West Vault’s 100-per-cent-owned Hasbrouck gold project located near Tonopah, Nev. 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.

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.

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 person is either a “Qualified Person” or an “Expert Relied Upon” 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 or Expert Relied Upon 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.