Mt Carrington DFS on track, but Red Mountain could be the sleeper
Shares in White Rock Minerals (ASX: WRM) rallied 6.5% on Monday ahead of management’s update regarding the company’s progress with its Mt Carrington Definitive Feasibility Study (DFS) and an Environmental Impact Statement (EIS).
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
As a backdrop, Mt Carrington has a JORC 2004 Resource containing 338,000 ounces of gold and 22.3 million ounces of silver. The upcoming completion of a new JORC 2012 resource will provide the company with models for the mining of gold and silver from five main deposits.
Management provided a brief in January regarding the overall goals of the upcoming studies, pointing to community consultation, the preparation and submission of a preliminary environmental assessment, a geological review of the resource and a detailed review and commencement of the metallurgical test work needed to lockdown the preferred plant design.
On Tuesday morning WRM’s Managing Director, Matt Gill wrapped a little more detail around the process in saying that he wants to confirm with greater accuracy and confidence that the technical aspects of the development are right, while also providing baseline technical plans for the environmental and government processes that will follow.
With regard to baseline studies, Gill is mainly referring to groundwater management, terrestrial ecology, ore haulage and ore and waste rock placement. WRM will also be generating a detailed social impact assessment strategy.
Red Mountain emerges as potential share price catalyst
While the Mt Carrington project is on the verge of meeting some important milestones, WRM’s Red Mountain project located in Alaska could be a surprise packet. The company is in the process of producing the first JORC 2012 compliant resource on the existing two deposits which are located 100 kilometres south of Fairbanks in the Bonniefield mining District.
WRM has 224 mining claims over an area of 143 square kilometres, much of which contains polymetallic VMS mineralisation, rich in zinc, silver and lead. Previous exploration has defined mineralisation at two main prospects, Dry Creek and West Tundra Flats.
Historical exploration has returned some impressive results from both prospects. These are the results from some of the drill holes at Dry Creek.
West Tundra also featured some strong zinc grades, but there were decidedly higher silver grades from that prospect.
With both the Mt Carrington and Red Mountain projects being examined and potentially developed in tandem, management has provided the following indicative timeline.
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