Western Alaska Copper & Gold Announces Resource Estimate for the Illinois Creek Project

TUCSON, Ariz., Feb. 3, 2021 /CNW/ - Western Alaska Copper & Gold (the "Company" or "WAC&G") is pleased to announce a Mineral Resource Estimate (MRE), for the Illinois Creek Project ("Illinois Creek"). The MRE has been prepared by Robert Sim, of SIM Geological Inc., and Bruce Davis, PhD of BD Resource Consulting, Inc. In addition to the MRE, Deepak Malhotra, PhD of Pro Solv, LLC has been retained to provide expertise for the Mineral Processing and Metallurgical Testing and Jack DiMarchi of Core Geoscience LLC is providing direction for the Environmental and Permitting requirements for the future evolution of this exciting project.  

The Illinois Creek mine is a past producing gold and silver heap leach mine in western Alaska developed by USMX Inc in 1997 which operated until closure and reclamation in 2003 due to depressed gold prices. 

The MRE includes an estimate of the in-situ mineral resources at the Illinois Creek mine and an estimate of additional mineral resources located on the historic Illinois Creek leach pad (which was drilled by WAC&G during the summer of 2020). The mineral resources are presented in the tables below.

The effective date of this MRE is January 15, 2021 and a new technical report will be filed on the Company's website within 45 days of this disclosure.

Table 1: Estimate of Combined Mineral Resources for the Illinois Creek Project
(In-Situ and Leach Pad Area)

Class	Tonnes (millions)	Average Grade				Contained Metal
		AuEq	Au	Ag	Cu	AuEq	Au	Ag	Cu
		(g/t)	(g/t)	(g/t)	(%)	(koz)	(koz)	(Moz)	(Mlbs)
Indicated	8.7	1.33	0.90	34.4	0.21	373	253	9.6	40
Inferred	3.3	1.44	0.99	36.2	0.21	152	104	3.8	15

Table 2: Estimate of In-Situ Mineral Resources

Class	Tonnes (millions)	Average Grade				Contained Metal
		AuEq	Au	Ag	Cu	AuEq	Au	Ag	Cu
		(g/t)	(g/t)	(g/t)	(%)	(koz)	(koz)	(Moz)	(Mlbs)
Indicated	7.4	1.39	0.98	32.7	0.17	331	234	7.8	28
Inferred	3.1	1.47	1.02	35.9	0.2	148	102	3.6	14

Table 3: Estimate of Mineral Resources in the Leach Pad Area

Class	Tonnes (millions)	Average Grade				Contained Metal
		AuEq	Au	Ag	Cu	AuEq	Au	Ag	Cu
		(g/t)	(g/t)	(g/t)	(%)	(koz)	(koz)	(Moz)	(Mlbs)
Indicated	1.3	1.00	0.44	44.3	0.42	41.8	18.6	1.9	12
Inferred	0.15	0.9	0.37	42.6	0.33	4.4	1.8	0.2	1

Illinois Creek Deposit Mineral Resource Estimate Notes:

• In-situ mineral resources are limited inside a $1,600/oz Au pit shell and are reported at a base case cut-off grade of 0.35 g/t gold equivalent (AuEq) where AuEq=Aug/t + (Ag/t x 0.0125). Leach pad mineral resources are reported at a zero-cut-off grade.
• The mineral resources were estimated using the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") standards on mineral resources and reserves definitions, guidelines were prepared by the CIM standing committee on reserve definitions and adopted by the CIM council.
• Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all, or any, part of the mineral resources estimated will be converted into mineral reserves.
• Mineral resources in the Inferred category have a lower level of confidence than that applied to Indicated mineral resources, and, although there is sufficient evidence to imply geologic grade and continuity, these characteristics cannot be verified based on the current data. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Indicated mineral resources with continued exploration.
• The economic viability of the in-situ mineral resources was tested by constraining it within a floating cone pit shell with the following parameters (US$):

		Mining (open pit)		$2.50/t
		Processing		$10.00/t
		G&A		$4.00/t
		Gold price		$1,600/oz
		Silver price		$20.00/oz
		Gold process recovery		92%
		Silver process recovery		65%
		Copper process recovery		0% (no CN-leach recovery of copper)
		Pit slope		45 degrees

The pit shell is generated using a floating cone algorithm based on the recoverable gold equivalent block grades. There are no adjustments for mining recoveries or dilution. This test indicates that some of the deeper mineralization may not be economic due to the increased waste-stripping requirements. It is important to recognize that discussions surrounding surface mining parameters are used solely to test the "reasonable prospects for eventual economic extraction," and they do not represent an attempt to estimate mineral reserves. There are no mineral reserves calculated for this Project. These preliminary evaluations are used to prepare a Mineral Resource Statement and to select appropriate reporting assumptions.

• It is assumed that all of the material currently located on the leach pad exhibits reasonable prospects for economic viability. It is also assumed that there will be no selective mining and that the whole volume of material on the pad will be processed using leaching solutions.
• There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the mineral resource.

Resource Estimates
The mineral resource estimates are prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The in-situ resources are based on a total of 41,488m of drilling in 505 drill holes completed by previous operators of the project between 1981 and 2006. The majority of the drilling was conducted by the North Pacific Mining Company, Echo Bay, and the United States Mining Corporation between 1991 and 1995. The historic drilling has been verified and is considered sufficient to support estimation of mineral resources. The leach pad resources are based on the results of 73 reverse circulation drill holes (643m) completed by WAC&G in 2020.

The mineral resource estimates are generated using drill hole sample assay results and the interpretation of a geological model which relates to the spatial distribution of gold, silver, and copper. Interpolation characteristics are defined based on the geology, drill hole spacing, and geostatistical analysis of the data. Block grades are estimated into model blocks measuring 10x10x5m (LxWxH) using ordinary kriging and are validated using a combination of visual and statistical methods. The effects of potentially anomalous high-grade sample data, composited to 1.5 metre intervals, are controlled using both traditional top-cutting as well as limiting the distance of influence during block grade interpolation. Resources in the indicated mineral category are delineated by drilling spaced at maximum 30 metre intervals. In-situ mineral resources in the inferred mineral category are within a maximum distance of 100 metres from a drill hole. Leach pad inferred mineral resources are within a maximum distance of 60 m from a drill hole. The estimate of the in-situ mineral resource is constrained within a limiting pit shell derived using projected technical and economic parameters.

Qualified Persons
Robert Sim, P.Geo. of SIM Geological Inc., and Bruce Davis, FAusIMM of BD Resource Consulting, Inc. are Qualified Persons as defined by NI 43-101 and are responsible for the estimate of mineral resources presented in this news release. They have reviewed, verified, and approved the contents of this news release as they relate to the mineral resource estimate, including the sampling, analytical, and test data underlying the mineral resource estimates. Mr. Sim and Mr. Davis are independent from WAC&G and confirm there were no limitations from the company in verifying the drilling and sample data with site visit observations and monitoring of the QAQC program.

About WAC&G
WAC&G is an Alaska registered private corporation with offices in Alaska and Arizona. WAC&G has reassembled and fully controls all claims in the historic Illinois Creek Mining District located in western Alaska near the Yukon River, covering 35,520 acres (55.5 square miles). This significant district was originally discovered by Anaconda Minerals Co. in the early 1980's. Since 2010, WAC&G has been deeply engaged in exploring and advancing its interests in the District and now controls a diversified portfolio of five deposits that contain gold, silver, copper, lead, and zinc.

On behalf of the Board of Directors

"Kit Marrs"

Kit Marrs
Chairman, CEO & Director

Forward Looking Information
Certain statements made, and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

SOURCE Western Alaska Copper & Gold, an Alaska Corporation

Kit Marrs: E: [email protected], T: [phone]; Mr. Catalin Kilofliski, Director Corporate Development: E: [email protected], T: [phone]; Or visit our website at: www.wacg.rocks