WestKam Gold Corp. has ~183.9 million shares outstanding. The Company is fully financed (over subscribed in its last financing) to accomplish all near-term objectives, and shares of WKG.V are poised for upside revaluation as the inherent value and accomplishments are appreciated by the market.

 

Figure 1. (below) - Key veins discovered to date, inset of underground workings and drill core sample

 

 

Work on the property first commenced in 1985 following the discovery of high-grade gold in quartz at surface. 127 diamond drill holes in the 'Discovery Zone' alone, totaling 7,436.6 m, have encountered multiple high-grade drill intersections for gold (e.g. 113.70 g/t over 0.87 m, 142.97 g/T over 1.2 m, 321.22 g/T over 0.56 m, 115.51 g/t over 1.07 m), revealing a series of gold-laden near-surface quartz veins. The high-grade vein zones average two-to-three meters in thickness and appear to be located 12 to 15 meters apart within a larger regional structure. Exploration to date indicates the zones are open to expansion in all directions, and a much larger target zone, located east of the original Discovery Zone, was identified in the 2015 drill program.

 

Bulk Sampling

 

#1) Averaged 26.5 g/T Gold -- In 1994 the Discovery Zone was open pit mined on the Grey Jay/Crow Vein system. A total of 3,700 metric tons of mineralized quartz vein material was shipped to the Cominco Smelter in Trail BC, yielding ~98kg (3,160 oz Au) of gold. The bulk sample was halted as they were deep in the pit and needed to go underground. The shipped ore to the smelter graded 26.5 g/T Au.

 

Mining MarketWatch Journal notes very encouraging observation from past operator at the time of the first bulk sampling in 1994; the material which appeared waste at first, as visibly not part of the main vein, when tested was running ~7 g/T gold (historic, predates NI43-101) for the ~100 m section they needed to chew through to get to the high-grade vein. That material was left behind and only the higher-grading hot-spot vein material was transported (thus the 26.5 g/T Gold average yield), however this observation makes the next bulk sample, setting-up for this 2016, extremely exciting as it is these large swaths of stockwork material running full of stringers found in between the main quartz veins that will determine what may become the next big mine in B.C.

 

#2) Averaged 16.28 g/T Gold -- In 2010 a second bulk sample shipment from the Grey Jay / Crow vein system was trucked to the Kinross Mill located in Washington State for processing. A total of 364.6 dry short tons of mineralized quartz vein material averaging 0.475 oz/ton Au were processed yielding 161.95 troy ounces of gold at a recovery rate of 93.51%.

  

Fig. 2. (above) Entrance to portal box cut and ramp road ready to go for bulk sampling. #3) The current 10,000t Bulk Sampling   WKG.V has a green light to go and unfold the story without diluting the share structure.   This Q2-2016, WestKam received an underground Bulk Sample Permit from the BC Ministry of Energy and Mines, allowing for the extraction of 10,000 tonnes of ore from the Bonaparte Project. The permitted design of the Bulk Sample program includes extension of the existing decline approximately 245m through to the Grey Jay / Crow vein system.   WKG.V already has the portal collared and is underground ~100 m, running at ~15% decline, and from that 100 m point WKG.V will be drifting another ~245 m of development, cross-sectioning all the veins on the property, going through the ore body and seeing how the whole picture looks, and transporting high-grade vein material to the mill. As these are the same veins, there is no reason not to expect grades similar in nature to what was encountered on the first two bulk samples, and we expect WKG.V to come out well ahead financially once completed (the 1994 bulk sample yielded over 3,000 oz gold and was only 3,700 tonnes, this bulk sample should be 10,000 tonnes). There is at least one known blow-out/jewelry box section in the Crow/Grey Jay vein that WKG.V will exploit along the way, and all the other veins have never been mined. By placing vent raises (ventilation shafts to surface) through high-grade vein structures and areas full of stringers, like the Nutcracker vein, the Company will maximize yield.

 

As exciting are the riches of this bulk sample, the more important and lucrative prospect for shareholders will be the development the bulk sample provides and story that unfolds that can shed light on the bigger picture and prove up the prospect of this becoming the next big mine in BC, attracting major area stakeholders/potential suitors and popping the share price. The bulk sample should pay for the development and leave extra money to take the project to another level.

 

The Company is aggressively moving forward;

 

Figure 3. (above) - Two boom jumbo procured to make quick work of underground development

Figure 4. (above) - Facilities

Figure 5. (above) - Upgraded Security

The property is ready, and the Company has received clearance from the British Columbia Ministry of Energy and Mines to proceed. Road and ramps are built, containment for fuel is up to code, upgraded bunkhouse is in place, entrance to portal cleaned up, dewatering is complete, security is upgraded, equipment is in place, and the engineer report has been done. WKG.V should be advancing the decline underground for the beginning of this August, and is currently in talks with Kinross Gold Corporation regarding a milling facility for processing material.

 

Discovery Zone Cu-Au Porphyry Target Extended - The known 'Discovery Zone' area appears to be only the tip of the iceberg. IP, magnetic, and geochemical surveys have revealed a cornucopia of attractive drill targets and affirm the findings of a BCGS report that indicates the property has potential for large copper-gold porphyry.

 

 

Figure 6. (above) - Annotated map showing select IP and magnetic geophysical survey anomalies.
 
Volterra 3D IP and ground magnetic surveys have substantially extended the strike length of the high-grade Discovery gold zone trend. The extent of the zone's chargeability and resistivity anomalies has now been traced 1.2 kms from the Discovery Zone to the south-southeast, and the zone remains open. Several parallel features of similar chargeability and resistivity signatures have also been identified. Additionally, southwest of the Discovery Zone is a large magnetic anomaly comprised of extreme highs and lows with coincident IP chargeability responses under a younger basalt cap. These results suggested potential for a multi-phase intrusive.
 

The New 'Cooler Creek' Zone

 

 

Figure 7. (above) - Annotated map showing select magnetic geophysical survey anomalies superimposed on an outline of the geochemical trend. The Cooler Creek Canyon has an area of resistivity and chargeability anomalies and also contains part of the 2km long Cu-Au-Mo geochemical trend

 

A seven-hole, 583.22 metre, drill program carried out in the fall of 2015, discovered a new vein ~450 metres east of the Crow/Grey Jay/Owl veins of the Discovery Zone. This new vein discovery at 'Cooler Creek' from DDH-15-05 (see November 16, 2015 News Release "Assaying 0.253 oz/t Gold, 38.4 g/t Silver, 0.33% Copper and 28.6 g/t Tellurium, over 1.0 meter") lies within an anomalous IP resistivity, chargeability and Au/Cu geochemical trend which extends 1.2 kms to the south-southeast and is open both northward and southward. WKG.V has plans to drill and expand upon this new discovery vein.

 

WKG.V shareholders are in for an exciting second half of 2016 as the development from the 10,000t bulk sampling of the Discovery Zone is likely to bring insight and discovery that has the potential to catapult the Company's share price.

 

  

Recent (August 2, 2016) news from WestKam Gold Corp.: