White Rock retains 100% interest in Red Mountain Project
White Rock Minerals Limited (ASX:WRM) today announced that Sandfire Resources Limited (ASX:SFR) decided to forgo its right to earn-in to the Red Mountain Project, Alaska, effective today, although it remains a 11.3% shareholder of White Rock.
Sandfire’s withdrawal means that White Rock will retain 100% ownership of its flagship exploration project, the Red Mountain Project, a high-grade zinc and precious metals VMS project with significant gold potential at the newly defined Last Chance prospect.
The outstanding potential of the Red Mountain project is highlighted by the two high grade deposits, with an Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq2 for 1.1 million tonnes of contained zinc equivalent at Dry Creek and WTF deposits.
The newly defined Last Chance gold anomaly discovery is within the Tintina Gold Province, host to giant gold deposits including Donlin Creek (45Moz Au), Pogo (10Moz Au) and Fort Knox (13.5Moz Au), which are all of the Intrusion Related Gold System (IRGS) style of mineralisation.
The Last Chance Prospect is a large (15km2), strong (up to 418ppb (0.4g/t) gold) and robust gold anomaly defined by 27 stream sediment sample points.
It should be noted that the nearby Pogo gold mine, recently acquired by ASX-listed Northern Star (ASX:NST), was discovered on a similar stream sediment gold anomaly.
Sandfire spent A$8.5 million on the project in 2019 and will withdraw without earning any retained interest. White Rock were the beneficiary of some A$7.7 million spent on the ground in 2019 and earnt some $770,000 as manager in the process.
White Rock obtained a huge amount of exploration data from flying the first modern-day airborne EM over its 475km2 strategic tenement package, and conducted a significant amount of stream and rock chip sampling, etc.
White Rock will now initiate a process to secure funding to explore the exciting new gold anomaly at Last Chance during the 2020 field season. It still has many targets to test, including the VMS target at Cirque it discovered and follow-up work at Hunter.
White Rock’s 100% control of the Red Mountain VMS mineralisation and the newly defined IRGS target at Last Chance provides its shareholders with much greater upside leverage in value creation through discovery.
White Rock MD and CEO Matt Gill said “While White Rock understands that commercial decisions can be at odds with individual project pathways, the retention of 100% of the Red Mountain Project will allow White Rock to identify alternate funding to advance the zinc and precious metals-rich VMS deposits while also pursuing the exciting new gold prospect at Last Chance with 100% of the upside exposure provided to White Rock shareholders.
“Our aim is to create value for our shareholders through exploration success, a core strength of the White Rock Board and management team.”