The US Bureau of Land Management accepted West Kirkland Mining’s (TSXV: WKM) mine plan of operation for the Hasbrouck gold project located in Nevada.
In a press release, West Kirkland explained that the Bureau will now commence the analysis of the MPO under an environmental assessment and will start receiving public comments on the plan and on its own analysis. Once the entire process is completed, the government agency will be able to proceed with a final decision.
The Hasbrouck gold project contains proven and probable reserves of 784,000 gold equivalent oz or 45,270,000 tons at 0.017 Au oz/t for 762,000 contained Au oz; 0.233 Ag oz/t for 10,569,000 contained Ag ounces
According to the Canadian miner, the recent approval follows a 28-month process involving multiple BLM specialists who analysed the MPO. The document includes construction level drawings, plans, and schedules.
“The company is pleased to receive the BLM’s decision to commence the analysis of the Hasbrouck Mine pit and facilities under an EA and anticipates having federal permits for both the first and second phases of the Hasbrouck gold project in the near future,” the media brief states. “A federal (BLM) permit for the Phase 2 Hasbrouck mine reduces project execution risk as a shovel-ready gold project in the US south-west. In an independent pre-feasibility study completed for the Hasbrouck gold project in 2016, a sensitivity analysis at $1,500 gold resulted in an estimated after-tax IRR of 65% and a US$200M NPV.”
Located on Highway 95 between Reno and Las Vegas, Hasbrouck consists of West Kirkland’s 75%-owned Hasbrouck and Three Hills properties. The first phase of the Hasbrouck gold project is the Three Hills mine which received a federal permit in November 2015.
In the view of the Vancouver-based firm, the BLM’s decision to analyse the MPO for the second phase Hasbrouck mine under an EA rather than under the lengthier and more expensive Environmental Impact Statement leads management to expect that a federal permit may be issued in Q2-2020.