On the 30th of June, White Rock Minerals (ASX:WRM, OTCQX:WRMCF) provided an update on their exploration activities at our Red Mountain silver-rich zinc VMS and IRGS gold project in central Alaska.
After much planning and preparation, the company has now got its first drill hole under its belt – a 200 metre step-out hole at its silver-rich zinc VMS Dry Creek deposit. While the intersection was narrow, the exciting news is that it confirms that this VMS lens continues for at least another 200 metres down dip (i.e. double the previous known depth), and the company’s experts know that VMS lenses can pinch and swell. This drill rig is scheduled to test the full 1.2-kilometre length of this deposit, doing more 200 metre step out holes. We look forward to the assays.
With some 40 personnel now on-ground, spread across two camps, and supported by two choppers, there is much going on:
- Three drill rigs are now operating – one continues on Dry Creek, one on new VMS targets and one on the company’s large gold anomaly at Last Chance;
- White Rock Minerals has several recon crews scoping out possible new drill targets. They are scouring the company’s large (800 km2) tenement package mapping and sampling, and backed up by geochem and the airborne geophysics data they flew earlier this season. To date they have taken over 2,500 soil samples already, all analysed using portable XRF technology; and
- The company has an on-ground geophysics crew working away also.
About White Rock Minerals (ASX: WRM, OTCQX:WRMCF)
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 798km2, 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.