Vancouver, British Columbia–(Newsfile Corp. – February 14, 2022) – West Vault Mining Inc. (TSXV: WVM) (OTCQX: WVMDF) (“West Vault” or the “Company”) has completed a positive internal study aimed at reducing carbon dioxide (“CO2”) emissions at the Hasbrouck Gold Project, Nevada. This study shows that CO2 emissions can be significantly reduced by:
Use of grid electricity instead of liquefied natural gas (“LNG”) generated electricity as planned in phase one of the mine (“Three Hills Mine”);
Use of primary electric mining equipment instead of diesel equipment at the Phase Two Mine (“Hasbrouck Mine”); and
Use of electric power instead of diesel for the drying ovens in the central processing plant.
The study indicates that these changes are feasible and would reduce energy-related emissions from approximately 200,000 tonnes of CO2 to approximately 66,000 tonnes of CO2 over the life of mine. NV Energy has recently confirmed its ability to supply the additional electrical power needed, paving the way for a more detailed study.
NV Energy currently sources around 25% of its energy from renewable sources and has a mandate to supply 50% from renewable sources by 2030 and aim for 100% by 2050.
The proposed changes are expected to slightly increase initial capital and will tend to reduce operating costs, with progressively greater operating cost savings as cap and trade systems are more widely implemented.
Primary electric mining equipment in the form of mine drills and shovels is currently available at costs comparable to diesel equipment, and nearly all major haul truck OEMs are developing electric haul trucks, which should be available commercially in the next few years.
Secondary electric mining equipment such as bulldozers, graders, tankers, blast trucks and pick-up trucks are expected to be available in electric form in the not-too-distant future, which would further reduce emissions by another 24,000 tonnes of CO2.
About the Hasbrouck Gold Project
The Hasbrouck Gold Project is a construction-ready all-oxide gold-silver deposit near Tonopah, Nevada. A pre-feasibility study argues that the Three Hills and Hasbrouck deposits can be mined by open pit with:
- 92% after-tax IRR at $1,800 gold
- After-tax NPV of US$295 million(5)
- Initial capital of 47 million US dollars
- 70,000 ounces of gold per year for 8 years
- All-in sustaining cost of US$709 per ounce of gold
(National Instrument 43-101 Updated Technical Report and Preliminary Feasibility Study for the Hasbrouck and Three Hills Gold-Silver Project, Esmeralda County, Nevada, USA, Report Date: September 14, 2016 Filed on www.sedar.com and prepared by Thomas L. Dyer, PE and Paul Tietz, CPG of Mine Development Associates – the “Technical report“).
There are no known technical, environmental, economic or social obstacles preventing the immediate construction and operation of the first pit (Three Hills mine). The acquisition of state permits and detailed engineering are the only elements necessary for the construction of the second pit (Hasbrouck mine).
Sandy McVey P.Eng., Interim Chief Executive Officer and Chief Operating Officer of the Company, as a Non-Independent Qualified Person as defined by National Instrument 43-101 – Disclosure Standards for Mining Projects (“NI 43-101”), has reviewed and approved the technical information disclosed in this press release.
About West Vault Mining Inc.
The Company’s strategy for the Hasbrouck Gold Project is to maximize shareholder value and avoid dilution by building the Hasbrouck Gold Project or selling it at a time when the market better reflects the value of the project.
West Vault is focused on acquiring and advancing gold projects near construction in secure jurisdictions and owns 100% of the Hasbrouck Gold Project in the Walker Lane Trend, Nevada.
In August 2020, the Company obtained 100% ownership of the Hasbrouck gold project.
In February 2021, the Company received US$6.0 million after entering into a 1.41% gold and silver streaming agreement with Sprott Private Resource Streaming and Royalty Corp.
West Vault maintains a strong balance sheet with US$5.6 million in cash as of January 31, 2022 and no debt.
On behalf of the Board of Directors of West Vault Mining Inc.
Interim CEO and COO
Disclaimer for forward-looking information
This press release may contain forward-looking information or statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is generally identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume” and similar expressions, or are those which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. Forward-looking information contained in this press release includes, but is not limited to, permitting status and expectations related to the reduction of CO2 emissions at the Hasbrouck Gold Project. Although West Vault believes that the information contained 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 contained in the forward-looking information due to a variety of factors, including the following: : risks and possible adverse impacts due to the global outbreak of COVID-19, 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 machinery, equipment or supplies required to develop and operate a mine; a material change in the availability or cost of labor required to operate a mine; a significant increases in the cost of transporting the Company’s products; variations in the nature, quality and quantity of mineral deposits likely to be located; and the ability of the Company to obtain the necessary permits, consents or authorizations for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of properties mining. The reader is invited to consult the Company’s public documents for a more complete discussion of these risk factors and their potential effects which may be accessed via the Company’s profile on SEDAR at www.sedar.com.
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.