White Rock enters into a strategic relationship with Sandfire
White Rock Minerals Limited (ASX:WRM) (White Rock) is pleased to announce a cornerstone investment and strategic relationship with Sandfire Resources NL (ASX:SFR) (Sandfire). The parties have entered into a subscription agreement to formalise this strategic relationship in relation to White Rock's globally significant high-grade zinc VMS Red Mountain Project in Alaska (Red Mountain Project).
This agreement enables the Company to benefit from Sandfire’s significant technical expertise to develop the Red Mountain Project as well as further strategic support as the Company moves to unlock the potential from its large strategic land holding.
MD & CEO Matt Gill said “White Rock welcomes Sandfire as a strategic partner and cornerstone investor that shares White Rock's vision for the exploration and development of the Red Mountain Project. Securing a high-quality partner with world leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of White Rock’s globally significant high-grade zinc VMS Red Mountain Project. White Rock looks forward to collaborating with Sandfire Resources as part of this new strategic relationship.”
The strategic relationship comprises the following elements:
- A$2.5 million equity placement - a placement of 208,333,334 fully paid ordinary shares in White Rock at A$0.012 (1.2 cents) per share and the issue of 104,166,667 unlisted options to subscribe for White Rock shares to raise A$2.5 million. The issue price of the shares represents a 41% premium over the one-month volume-weighted-average price of White Rock shares (0.85 cents) up to and including 9 July 2018. The options have an exercise price of A$0.02 (2 cents) and expire 3 years from the date of the agreement. Following completion of the share placement, Sandfire will own approximately 14.2% of White Rock. The proceeds will be used to advance exploration activities at the Red Mountain Project and for general working capital purposes. No shareholder approval is required for the placement.
- Technical Collaboration - the formation of a technical committee for the purposes of jointly collaborating in connection with the Red Mountain Project including identifying best options for advancement of the Project.
- Option for Earn-in and Joint Venture over Red Mountain Project - Sandfire will have the right and exclusive option to enter into an earn-in joint venture agreement in relation to the Red Mountain Project, which option may be exercised prior to 31 December 2018. If the option is exercised, the parties will negotiate, agree the form of and enter into an earn-in and joint venture agreement reflecting the following principles:
- Stage 1: Sandfire to fund a total of A$20 million over four years to earn 51%, with a minimum expenditure by Sandfire of A$6 million in Year One.
- Stage 2: Sandfire to fund a further A$10 million and deliver a pre-feasibility study over an additional two years to earn 70%, which may be extended by Sandfire for a further year in certain circumstances.
- Stage 3: White Rock may elect to contribute to the joint venture. If White Rock elects not to contribute, Sandfire can solely fund Stage 3 to earn 80% by completion of a definitive feasibility study.
- Stage 4: White Rock may elect to contribute to the joint venture. If White Rock elects not to contribute, Sandfire will earn 90% and White Rock's 10% interest will be earned from project cash flow.
- Project Management: White Rock is entitled to continue managing the project for at least the first year of the earn-in and to be paid a management fee. Ongoing management responsibility of the project will be subject to annual review and after the first year will be at Sandfire's election.
- Anti-dilution Protection - an anti-dilution right enabling Sandfire to maintain its interest in White Rock, subject to obtaining an appropriate ASX waiver.
- Board Nomination Right - a board nomination right enabling Sandfire to nominate a non-executive director to White Rock's Board should Sandfire's shareholding interest in White Rock reach 15%.
About Sandfire Resources NL:- Sandfire is a leading mid-tier Australian mining company focused on discovering, developing and operating high quality resource assets capable of delivering substantial returns for its shareholders. Sandfire is a leading Australian copper producer which operates the high-grade DeGrussa Copper-Gold Mine, 900 km north of Perth in Western Australia. Sandfire has a growing portfolio of exploration interests and joint ventures in highly prospective mineral provinces around Australia and overseas.
High-Grade Zinc-Silver-Gold Drill Intersections
Extend Mineralisation at Red Mountain
The first two drill holes of the 2018 program to test the down plunge
extension of mineralisation at both the Discovery lens and the
Fosters lens at the Dry Creek deposit have returned exceptional zinc,
lead, silver and gold grades:
- 4.7m @ 19.5% zinc, 7.8% lead, 466g/t silver, 6.9g/t gold and 1.5% copper for 49.7% ZnEq1 (DC18-79), including 1.6m @ 18.5g/t Au.
- 4.3m @ 4.8% zinc, 2.3% lead, 1,435g/t silver, 2.2g/t gold and 0.5% copper for 43.2% ZnEq1 (DC18-77).
- The Discovery lens hole (DC18-79) intersection is the best result of all the historic holes drilled into the Discovery lens.
- This drilling extends the high-grade Fosters and Discovery Lenses and highlights the exceptional growth potential as the mineralisation remains open.
White Rock Minerals Ltd (“White Rock” or the “Company”) is pleased to announce
assay results for massive sulphide mineralisation intersected in the first two
diamond drill holes targeting the down plunge extension of mineralisation in the
Discovery lens and the Fosters lens of the Dry Creek deposit at its 100% owned
high-grade zinc VMS project at Red Mountain in Alaska. The Discovery lens interval
corresponds with the visible sulphide mineralisation previously reported (ASX
Announcement 20 June 2018), as shown in Figure 1.
The diamond drilling results are part of White Rock’s maiden drill campaign at the
Red Mountain project. Drilling is now targeting extensions of the two existing
deposits, Dry Creek and West Tundra, which already have a Resource base of
16.7Mt at 8.9% ZnEq1 including a high-grade component of 9.1Mt @ 12.9% ZnEq1
(refer ASX announcement 26 April 2017 regarding the maiden Mineral Resource).
MD & CEO Matt Gill said “This drilling represents a significant extension to the Dry
Creek deposit and notably down dip at both the Fosters and Discovery lenses.
These first two extension drill holes highlight the upside potential for a significant
expansion to the Resource at Dry Creek, both in terms of grade and size. Dry Creek
is an exciting VMS deposit as it shows great variation in thickness that has the
potential to rapidly add to the Resource. These current drill holes also highlight the
potential for significant high-grade gold and silver with individual assays up to 25g/t
Au and 1,795g/t Ag (or more than 50 ounces of silver per tonne in the old measure).
In addition, we are continuing to see more copper as we explore to the east,
supporting an early interpretation that the VMS system may be improving towards
the east and at depth, where improving zinc grades could also be expected. And all
this before we have really got our teeth into testing some of the best of the more
than 30 already identified regional exploration targets within our 143km2 land
The drill program continues to test extensions of the Discovery lens with a further two drill holes completed
(assays awaited) and another drill hole underway. The long-section and cross-section presented in Figures 2
& 3 illustrate the upside potential for down-plunge mineralisation extensions. The Dry Creek deposit shows
typical pinching and swelling of mineralisation as is often encountered in other VMS deposits, underlining
the upside potential for down-plunge and along strike Resource expansion through drill testing.
In addition to drilling at the Discovery lens, results for the first drill hole testing the down plunge extension
of mineralisation at the Fosters lens of the Dry Creek deposit have also been received. DC18-77 intersected
two zones of semi-massive sulphide mineralisation. The lower zone returned exceptional silver
This drill program is being supported by applying on-ground geophysics (CSAMT), along with surface mapping
and rock and soil sampling analysis. Some of the drill holes have also been prepared for follow-up geophysical
testing using down-hole EM.
Results for DC18-77 and DC18-79 are summarised in Table 1.
1 ZnEq = Zinc equivalent grades are estimated using long-term broker consensus estimates compiled by RFC Ambrian as at 20 March 2017 adjusted for recoveries from historical metallurgical test work and calculated with the formula: ZnEq =100 x [(Zn% x 2,206.7 x 0.9) + (Pb% x 1,922 x 0.75) + (Cu% x 6,274 x 0.70) + (Ag g/t x (19.68/31.1035) x 0.70) + (Au g/t x (1,227/31.1035) x 0.80)] / (2,206.7 x 0.9). White Rock is of the opinion that all elements included in the metal equivalent calculation have reasonable potential to be recovered and sold.
New Massive Sulphide Mineralisation Drill Intercepts Coincident with Geophysics Anomalies at Red Mountain
- Drilling to test for down dip extensions at the Dry Creek zinc VMS deposit intersects massive sulphide mineralisation at the Discovery lens,
- Drill hole DC18-79 intersects 6.1m (downhole) with abundant visual zinc (sphalerite) and lead (galena) mineralisation,
- Orientation geophysics confirms strong conductivity anomalies are coincident with massive sulphide mineralisation,
- CSAMT geophysics surveys have now commenced across other high priority target areas ahead of drill testing and potentially future discoveries
White Rock Minerals Ltd (“White Rock” or the “Company”) is pleased to announce that orientation geophysics at its 100% owned high-grade zinc VMS project at Red Mountain in Alaska has confirmed that the Dry Creek massive sulphide mineralisation is coincident with strong conductivity anomalies that are identified using both the CSAMT geophysics exploration tool (Figure 1) and time domain electromagnetics geophysics (“EM”). This successful orientation work allows White Rock to progress with confidence in applying the more rapid acquisition of CSAMT data across priority target areas, prior to drill testing.
At Dry Creek, the first drill hole (DC18-79) at the Discovery zone targeted the down-dip extension of the Resource. Drilling intersected massive sulphide mineralisation with abundant sphalerite (zinc), pyrite and galena (lead) from 230.6 to 236.7 metres (6.1m) downhole (estimated true width of 3.9m) (Figure 2). This hole is some 60 metres from the nearest hole (DC97-26).
Figure 1 highlights the coincidence of the CSAMT conductivity anomaly with massive sulphide mineralisation intersected in historic drill holes at the Discovery lens. Drill hole DC18-79 intersected the massive sulphide zone of abundant sphalerite and galena in the core of the CSAMT anomaly. The coincidence of conductivity and massive sulphide mineralisation rich in sphalerite provides confidence in applying the CSAMT technique to define other targets for drill testing in new prospective areas prioritised by favourable geological observations and anomalous surface geochemistry.
MD & CEO Matt Gill said “We are delighted with the results of the orientation geophysics. The stark conductivity anomaly results seen and their coincidence with known massive sulphide mineralisation gives White Rock a powerful exploration tool with which to identify new targets for drill testing, hopefully leading to resource expansion and the discovery of new deposits. Further, this latest drill hole intercept of massive sulphides supports our belief that there is further potential for the discovery of more high-grade VMS mineralisation and that this resource is also open down-dip.”
Initial High-Grade Zinc Drilling Results at Red Mountain
Two of the first three drill holes in the 2018 campaign return exceptional zinc, lead and silver grades:
- 3.5m @ 15.1% zinc, 6.7% lead, 518g/t silver, 2.1g/t gold and 0.2% copper for 35.2% zinc equivalent1 (WT18-28),
- 8.9m @ 6.5% zinc, 2.7% lead, 124g/t silver, 0.7g/t gold and 0.2% copper for 12.7% zinc equivalent1 (DC18-76),
- The West Tundra hole (WT18-28) is the best drill hole intersection of all the historic holes drilled into this deposit.
White Rock Minerals Ltd (“White Rock” or the “Company”) is pleased to announce the first round of assay results for massive sulphide mineralisation intersected in two of the first three diamond drill holes at its 100% owned highgrade zinc VMS project at Red Mountain in Alaska. The intervals correspond with the visible sulphide mineralisation previously reported (ASX Announcement 5th June 2018), as shown in Figures 1 & 2
These diamond drilling results are part of White Rock’s maiden drill campaign at the Red Mountain project. The initial drilling results are from infill drilling of the two existing deposits, Dry Creek and West Tundra, with a Resource base of 16.7Mt at 8.9% ZnEq1 including a high-grade component of 9.1Mt @ 12.9% ZnEq1 (refer ASX announcement 26 April 2017 regarding the maiden Mineral Resource).
At West Tundra, the WT18-28 high grade mineralisation intercept from 60.6 to 63.1 metres downhole has an estimated true width of 3.4m (Figure 3) and is the best grade-thickness intersection for any drilling at West Tundra. This hole is some 75 metres from the nearest hole (WTF82-05) and indicates the sparse drilling at West Tundra (100-250 metre spacing) is open to improvements in grade and thickness with infill drilling. The first drill hole (WT18-27) drilled down a steep angled fault and did not intersect any significant base metal sulphide mineralisation
At Dry Creek, the DC18-76 intercept is in line with surrounding drill intersections. The high-grade mineralisation from 63.9 to 72.7 metres downhole has an estimated true width of 7.9m (Figure 4). This hole is some 20 metres from the nearest holes (DC97-33 and DC98-39).
MD & CEO Matt Gill said “These first drill assay results for the Dry Creek and West Tundra deposits validate our belief that these two deposits form part of a genuine high-grade zinc rich polymetallic VMS mineralisation system. Our exploration program focus is to expand the maiden Resource and to identify and test new targets to make the additional discoveries. Initial drilling and surface mapping and sampling have allowed us to characterise the mineralisation at Red Mountain, providing the knowledge with which to identify, prioritise and test these new targets. This is a great start to our 2018 exploration program and we are confident of adding to our maiden Resource in a meaningful way over the next few months.”
Diamond drilling has now moved on to testing areas with the potential to extend the known Resources and a selection of new targets prioritised by surface mapping, geochemical sampling and geophysics.
Field crews commenced their field assessment (mapping and soil and rock chip sampling) on the highest priority targets at the beginning of June with the intention of undertaking mapping and surface sampling prior to selecting targets for drill testing throughout the 2018 campaign.
The geophysics crew has now also commenced field surveys with initial orientation work across the known mineralisation at Dry Creek in progress. Electrical surveys are expected to commence on new targets this week.