The White Rock exploration team has been busy out in the field, and have come across yet another possible drilling prospect – called Kiwi. This is the 3rd prospect to be identified in our newly pegged ground in our newly identified Keevy VMS trend. The copper-rich massive sulphides found there (photo in the Release) shows signs of VMS that is currently the subject of more mapping, sampling and geophysics. If these stack up, we hope to drill it this season.
Also, importantly, the drill doing the 200 metre step out holes at our silver-rich zinc VMS deposit at Dry Creek has intersected four broad zones of sulphides at depth in its most recent hole, indicating that the mineralised system does extend to at least twice the known depth in this area. This is very encouraging as the shallowest hole in this area prior to this was 200 metres above it.
We have fielded some inquiries about the status of the drilling and offer some further commentary here.
We tendered, assessed and awarded a new drilling contract at the beginning of this year for the supply of two drill rigs and crew. The third rig was already on site and is provided by the contractor that has successfully done our last three seasons of drilling. This third rig is performing well and is doing our deep Dry Creek drilling.
However, the new drilling contractor mobilised and commenced drilling as required but has subsequently been unable to hang onto their own personnel due to a lack of experienced drillers and high demand in North America at this time of field season. We have however located a third drilling contractor and it is hoped their rig will arrive on site before the end of August.
As we have advised previously, exploration activity is red hot in North America currently, and not only affecting contractors meeting their obligations to provide drills and drilling crews, but it is also impacting on the very slow laboratory turn around times for assays. We have gone to a second lab as a result to try and speed up this turn around time, currently in excess of two months.
On a positive front, the merger with AuStar Gold nears its conclusion, with the Second Court Hearing occurring this week. This asset will bring with it 670km2 of under-explored Victorian goldfields, where past production has exceeded 1 million ounces. It also has two Mining Leases, and the famous Morning Star Mine, which produced more than 800,000 ozs at > 26g/t in its time. Infrastructure includes an operating shaft and underground workings, and a gold processing facility.
We are very excited about the exploration potential of this asset – both regionally and in-mine, and will update shareholders further on this asset once the merger has been completed.
And finally, our Technical Advisor Dr Quinton Hennigh has joined White Rock’s major shareholder Crescat Capital as their full-time executive Geologic and Technical Advisor. Importantly, Quinton remains supportive, involved and available to us but now under a Strategic Shareholder Arrangement to ensure appropriate corporate governance is observed.
About White Rock Minerals (ASX: WRM)
White Rock Minerals Ltd is an Australian minerals exploration and development company with activities focussed on two projects: Red Mountain and Mt Carrington.
The 100% owned Red Mountain Project, covering 836km2, is located in central Alaska. The Company is exploring for Intrusion Related Gold System (IRGS) mineralisation and high-grade silver-rich zinc volcanogenic massive sulphide (VMS) deposits.
There are already two high-grade zinc-silver rich deposits with an Inferred Mineral Resource of 9.1 million tonnes @ 157g/t silver, 5.8% zinc and 0.9g/t gold (13.2% ZnEq) (609g/t AgEq).
Mt Carrington is a 100% owned advanced gold-silver project located in northern NSW, Australia. A 2020 Pre-Feasibility Study (PFS) Update into the “Gold First” development stage declared an overall Mineral Resource of 352,000 ounces gold. There is also a Silver Mineral Resource estimate totalling 23M ounces. The PFS financial metrics for this project are robust, especially in this strong gold price environment. Using a conservative A$2,300 per ounce, the 2020 Gold First PFS financial metrics demonstrate a capital payback of just 14 months, an IRR greater than 80%, and with free cash flow generated from the gold over its first 5 years of greater than A$120M.
White Rock is also in the process of acquiring a Victorian gold explorer and producer called AuStar Gold. This asset commands a 670km2 under-explored but highly prospective gold tenement package, south-east of Fosterville, and with two mining licences, a small high-grade underground gold mine (Morning Star) and a gold processing plant. The Morning Star mine historically produced >800,000 ounces of gold at >26 g/t. The acquisition of AuStar offers a great entry point into the resurging Victorian gold scene, with significant exploration opportunities both in-mine and regionally.