Red Mountain - Additional US$1.5M Expands 2019 Field Program
Sandfire is currently funding Stage One of an Earn-In and Joint Venture Option Agreement (Agreement), whereby an initial A$20M expenditure will earn Sandfire 51% of the Red Mountain project. White Rock is the Manager of this year's program. The additional US$1.5M expands the total 2019 budget committed to exploration at Red Mountain to in excess of A$8M. The funds will be allocated to:
- Extend drilling a further five weeks to allow a number of new high priority targets to be drill tested. Drilling is focused on testing new targets defined from the ongoing field activities that include geological reconnaissance, surface geochemistry and modelling of the recent 2019 airborne EM survey.
- Additional geological reconnaissance, surface geochemical sampling and ground electrical geophysics surveys across the 475km2 strategic land package that will continue to deliver new priority targets for drill testing in 2019 and subsequent field seasons.
- Follow-up modelling and interpretation of airborne EM targets to assist in drill hole targeting and the continued use of down hole EM surveys.
White Rock's Managing Director, Matthew Gill said "The additional US$1.5M committed by Sandfire, over and above the A$6M already committed for the 2019 field season, is a strong endorsement of the quality and potential of the strategic land holding we have and the many targets being generated for drill testing."
About the Red Mountain Earn-In and Joint Venture Option Agreement
White Rock entered into an Earn-In and Joint Venture Option Agreement (Agreement) with Sandfire on 23rd March 2019 for the exploration and development of the Red Mountain Project under the following terms:
- Sandfire's Joint Venture funding arrangements under the Agreement are structured across four stages as previously announced and include an option to spend a minimum of A$20M over four years to earn 51%, with a minimum contribution of A$6M in 2019;
- Sandfire can then elect to increase its interest in the Red Mountain Project to 70% by sole-funding a further A$10M and by delivering a pre-feasibility study within a further 2 years;
- White Rock can then elect to contribute its percentage share of expenditure to retain its 30% interest;
- The Red Mountain Project includes a 475km2 tenement package covering numerous historic VMS prospects with little modern exploration, providing Sandfire and White Rock with a large strategic footprint over a potential new VMS camp and
- White Rock is the Joint Venture Manager during 2019 and earns a Management Fee as a result.
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About White Rock Minerals Ltd
White Rock Minerals Ltd (ASX:WRM) is a diversified explorer and near-stage producer, headquartered in Ballarat, Victoria. The Company's flagship exploration project is Red Mountain in central Alaska. At Red Mountain, there are already two high grade zinc - silver - gold - lead VMS deposits, with an Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq for 1.1 million tonnes of contained zinc equivalent. The Company is also exploring its recently discovered large intrusion related gold anomaly at Last Chance, also located in the Tintina gold belt of Alaska, home to multi-million gold ounce deposits like Pogo, Fort Knox and the Donlin Project. The Company also has the Mt Carrington project, located near Drake, in Northern NSW, which is a near-production precious metals asset with a resource of 341,000 ounces of gold and 23.2 million ounces of silver on an approved mining lease, and with a Gold First PFS and JORC Reserve. White Rock Minerals is listed on the Australian Stock Exchange.
White Rock Minerals Ltd
Sandfire Resources NL