Gill looks to enhance Scoping Study metrics at Mt Carrington

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Published 17-JAN-2017 15:40 P.M.

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2 minute read

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Chief Executive of White Rock Minerals (ASX:WRM), Matt Gill, announced on Tuesday morning that the company was ready to embark on what could be a transformational journey for the group as it undertakes a revised Scoping Study and moves towards a Definitive Feasibility Study (DFS) at its Mt Carrington gold/silver project located in north-eastern New South Wales.

Gill has an established reputation for transforming small early stage mining projects into robust going concerns with some of the previous companies he has been at the helm of being the subject of takeovers following successful development.

Of course, WRM is still in its early stages and similar events may not occur, so when looking at investing in this stock seek professional financial advice.

As Gill prepares to guide the project through a revised Scoping Study process, leading to a Definitive Feasibility Study he also highlighted the already impressive aspects of the previously conducted Scoping Study in saying, “The potential uplift of a revised Scoping Study would further enhance the strong financial metrics of the project where the current project Scoping Study results already imply an outstanding investment proposition with a pre-tax NPV10 of $60.6 million and an internal rate of return of more than 100%, with $100 million in free cash (undiscounted and before financing) delivered over the initial seven year mine life”.

Mt Carrington currently has a JORC resource of 338,000 ounces of gold and 23.4 ounces of silver, but Gill highlighted the significant potential upside for expanding the in pit mineral resource which could then flow through to increased mine life and/or higher gold and silver production rates.

While the Scoping Study, was conducted in mid-2012 the implied Australian dollar gold price was in line with today’s spot price taking into account foreign exchange rate movements.

Having substantial infrastructure in place from previous mine site work would benefit White Rock should it be able to bring the project into production.

Having raised $4.9 million before costs late last year and negotiated future financing for the construction and commissioning of the Mt Carrington project with repayments to be made from a percentage of future gold and silver production, the project has been substantially de-risked.

Furthermore, this should alleviate the need to conduct dilutive capital raisings that involve the issue of new shares. In commenting on the WRM’s financial position, Gill noted, “The funding proposal will directly provide for construction and commissioning through to commercial production, subject to the successful delivery of the Definitive Feasibility Study.”

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