White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF) has detailed the progress made across its Australian and Alaskan exploration assets at this week's Proactive Resources Webinar.
Managing director and CEO Matthew Gill reported on the company’s operations during the virtual conference on Thursday, outlining how WRM’s search for volcanic massive sulphides (VMS) and precious metals was tracking across its portfolio.
Currently, the multi-element explorer is undertaking its biggest exploration program to date at the Red Mountain Project, while a merger with Victorian gold explorer and small-scale producer AuStar Gold Ltd is poised to finalise on Monday.
White Rock’s market capitalisation currently stands at around A$33 million, while an independent expert report has put its fair value proposition between A$46 million and A$131 million.
Red Mountain
At the Red Mountain silver-rich zinc VMS project in Alaska, White Rock has identified multiple polymetallic VMS deposit targets and a large intrusion-related gold anomaly (IRGS) gold anomaly.
The project spans an 836-square-kilometre tenement package and contains multiple VMS targets that are yet to be drill tested. It also sits along the prolific Tintina Gold Belt.
Red Mountain hosts a maiden VMS, JORC-compliant resource of 9.1 million tonnes at 157 g/t silver, 5.8% zinc, 2.6% lead and 0.9 g/t gold for a 13.2% zinc or 609 g/t silver equivalent grade (using a 3% zinc cut-off grade).
Gill said: “This is a significant resource base just from two deposits, and we’ve got multiple deposits still to drill.
“Alaska is a first world jurisdiction, we've had great experiences in that state.”
Interestingly, the last exploration in this region was done over 20 years ago, leaving significant upside for modern exploration techniques.
As a result, White Rock has embarked on its most extensive exploration campaign to date and is currently halfway through the 2021 field season.
Some of the key field activities include;
- Drilling for downdip extensions to the Dry Creek VMS deposit;
- Drill testing new VMS targets in the Red Mountain area and along the newly identified Keevy VMS trend; and
- Drill testing the Last Chance gold target.
The MD and CEO continued: “We are currently drilling deep holes 200 metres below the nearest holes at the Dry Creek deposit.
“We’re on our fourth hole as we speak, and two of those holes’ assays are in the lab.
Picking up the keys to the Woods Point Gold Project
White Rock’s exposure to the “Victorian gold renaissance” is poised to grow when it picks up the keys to the Woods Point Gold Project on Monday.
The acquisition comes after WRM and gold explorer AuStar Gold finalised their merger, with the former to absorb all of the latter’s issued share capital under a share scheme of arrangement.
Gill stated: “It’s a great day for White Rock and shareholders where we will acquire a Victorian gold explorer and small scale producer.
“We have an asset now, not just in Alaska with a great team in country, but also one right on our doorstep.
Woods Point encompasses 670 square kilometres of highly prospective exploration tenure that has historically produced more than one million gold ounces.
The project comes with existing infrastructure, most notably two mining licences, an underground mine and an 80,000-tonne-per-annum gravity gold processing plant.
In the past, the Morning Star gold mine and processing facility have delivered around 830,000 gold ounces grading at roughly 26.5 g/t gold.
Precious metal exploration at Mt Carrington
Finally, at the Mt Carrington Project, White Rock is advancing its multi-stage joint venture with fellow ASX-lister Thomson Resources Ltd.
The northern New South Wales asset is prospective for precious metals and boasts 352,000 ounces of gold and 23.3 million ounces of silver.
The project also carries a 174,000-ounce JORC-compliant ore reserve, while a pre-feasibility study for the Gold First Stage was completed and updated last year.
MD and CEO Matthew Gill described the exploration company as “a fantastic partner to have.”
“It works for them to work with us to get Mt Carrington going, it helps enable some of their other assets.
“And for us, it allows White Rock shareholders to be exposed to this great asset while we focus on Alaska and … the Woods Point gold project.
“We think that's a great win-win for both Thomson and White Rock Minerals shareholders.”
In the first stage of its agreement with Thomson, White Rock is free carried through the project’s definitive feasibility study and environmental impact statement. This involves a budget of around A$5 million and TMZ can earn up to 30% of the asset.
In the next stage, both parties will target NSW development consent and a final investment decision. WRM will continue to be free-carried and Thomson can move to 51% ownership.
With a A$12.5 million payment in stage three, TMZ can earn up to 71% of the project, after which it will be developed along the joint venture ownership lines in stage four.
Under the agreement, Thomson will maintain Mount Carrington’s tenements until a joint venture is formed and make A$1.2 million in cash payments to WRM over stages one and two.
Looking ahead
Concluding his webinar presentation on Thursday, Gill surmised: “We've got great teams in-country and we obviously acquire a great team with the Woods Point Gold Project.
“We think we can do both. There is a seasonality to Alaska. Come the end of September, there won't be any field activity, although news flow will continue from the drill hole results and all the geochem and geophysics.
“But that allows us the opportunity and the capacity to pick up and run with the Victorian project all year round.
“Thirdly, there is still news coming out of our Carrington project, but that's being managed by Thomson Resources.
“We think we can deliver continuous movement across our projects throughout the year in this current structure.”