White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF) and Thomson Resources Ltd have executed a variation to amend an earn-in and JV agreement entered into in May last year.
The companies see greater benefit in capturing the polymetallic value of the known Mt Carrington deposits at Thomson’s New England Fold Belt Hub and Spoke central processing concept (NEFBHS) in northern New South Wales.
New focus on polymetallic project
The amended agreement allows Thomson to focus expenditure on advancement of the Mt Carrington Polymetallic Project through exploration and development activities.
White Rock’s JV partner will focus initially on integrating the known gold-silver-zinc-copper mineralisation at Mt Carrington into NEFBHS’s mineral resource estimates (MRE), where it is targeting an aggregate of a larger than 100-million-ounce silver-equivalent resource base to promote potential development of a central processing facility.
MRE to report combined mineralisation
Mt Carrington's existing JORC 2012 and 2004 MREs will be updated under the JORC 2012 code to report combined gold-silver-zinc-copper mineralisation and incorporated into the NEFBHS centralised processing pathway study that is in train.
The companies have agreed on changes to the earn-in structure under the amended agreement. There will now be a two-stage exploration earn-in and option to joint venture, whereby Thomson can earn-in up to 70% of White Rock’s Mt Carrington gold-silver-base metal project and, at Thomson’s election, form a JV.
Two-stage earn-in with JV option
There will be two stages to the JV. Under Stage 1, which takes place over three years from March 7, 2022, Thomson will earn 51% by completing at least $5 million in expenditure, comprising exploration activities, care and maintenance operational activities and care and maintenance minor capital works.
Stage 2 gives Thomson the opportunity to earn a further 19% in the project. During this time that company must complete at least a further $2 million in expenditure, comprising exploration activities, care and maintenance operational activities and care and maintenance minor capital works. Stage 2 is set to run for two years from the date of the companies’ election to proceed to Stage 2.
White Rock is free-carried through the exploration earn-in period. Thomson will continue management of the project and will have sole responsibility for keeping it in good standing and funding the operational site care and maintenance cost until the formation of the JV, either on a 51:49 or 70:30 basis, with major capital items to be borne in equal share by both companies.