White Rock reinforces its progress at gold and VMS projects
White Rock Minerals (ASX:WRM) has released its quarterly update to March 31, 2019.
During the quarter, several events took place, which included:
- WRM and Sandfire Resources (ASX:SFR) signing an Earn-In and Joint Venture Agreement to allow Sandfire to farm-in to the Red Mountain Project. As previously mentioned, Stage One will see Sandfire fund A$20M in exploration on the project over four years to earn 51%. For year one, the funding requirement is a minimum of A$6M
- As part of the above agreement, WRM and Sandfire formed a Management and Technical Committee, which developed and approved an A$6M budget for a 2019 exploration program
- Subsequent to the Quarter end, a 3,000KM SkyTEM airborne electromagnetic survey commenced.
Mt Carrington gold and silver project
WRM has also provided an update on its 100% owned Mt Carrington project in northern NSW.
A 2017 Pre-Feasibility Study (PFS) at the site declared a Maiden Ore Reserve of 3.47 million tonnes at 1.4g/t gold within a resource of 341,000 ounces of gold. The PFS confirmed Mt Carrington as a viable gold first project, with significant upside for subsequent silver production.
During the quarter, sustained strong Australian gold prices have encouraged WRM to explore avenues to expedite the development of the Mt Carrington tenement.
Red Mountain VMS Project
WRM and Sandfire have developed and approved an A$6M 2019 exploration program at Red Mountain. This program will include:
- 3,000 line km SkyTEM AEM survey – the first of its kind to be conducted at Red Mountain
- Satellite spectral analysis including the assessment of hyperspectral data, to identify and map alteration zonation ahead of field exploration
- Lithogeochemical analysis of tenement-wide rock chip samples collected in 2018, to assist in prioritising targets for detailed field exploration during 2019
- Extensive on-ground geological recon and soil geochemical sampling across regional target areas using portable XRF analysers
- Detailed electrical ground geophysics (CSAMT and MT) across the regional targets replicating the most rapid field acquisition technique that successfully mapped conductivity associated with mineralisation at Dry Creek and West Tundra
- A diamond drill program commencing late-May to follow up the successful discovery of new massive sulphide mineralisation at the Hunter prospect in 2018. This discovery has returned grades in excess of 17% zinc, 3% lead, 90 g/t silver and 1.5% copper, with only three drill holes completed to date
- A diamond drill program to test the best of the regional targets defined by this multidisciplinary use of airborne EM, 2018 stream geochemical anomalies, new satellite defined alteration, whole rock lithogeochemical alteration, on ground soil & rock geochemistry and on ground electrical geophysics
- Selective down hole EM surveys for follow up drill testing.
As of March 31 this year, WRM had A$1.85M cash on hand.
On 14 January this year, it was announced that a new prospectus for the Kentgrove Equity Placement Facility was lodged as the previous prospectus had ceased. This new prospectus will expire on February 13 2020.
On February 22 it was announced that Ian Smith was resigning as a Non-Executive Director, effective February 28.
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