WRM 0.00% 6.3¢ white rock minerals limited

I have been watching WRM for over 2 years now since it was...

  1. 295 Posts.
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    I have been watching WRM for over 2 years now since it was trading at 1 cents, but never bought in considering the risk profile of the stock..

    For me the biggest risk is with the low gold grade combined with a lower indicated resource of 153,000 ounces of gold compared to the inferred resource of 185,000. As for the silver profile is even worse with an indicated resource of 8,556,000 ounces of silver and inferred
    14,886,000. This is the reason why WRM's share price isn't sitting around the 3 cent mark along with management taking the dilutive approach with capital raising, WRM could potentially have +1 billion shares by the time mining commences limiting the upside in the share price, not to mention the high risk profile of the larger volume inferred resource for both gold and silver.

    Inferred resources are not based on any drill hole campaign and are an educated guess regarding the mineral reserves in the land base in question. An ‘Inferred Mineral Resource’ rely on seismic data and an understanding of the geology of the area in question for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

    An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

    As per balance sheets, etc. The market often gives little to no value to inferred resources unless there is a massive ongoing drilling campaign which is expected to convert most of the inferred resources to indicated and/or measured. When the DFS comes out there could be potentially large variances with their inferred resource which could impact the share price negatively.

    Buy if you can take the risk of this micro cap miner but if not there's plenty of safer mid and large cap gold miners on the ASX that will boom later in the year with no debt and producing 300,000 ounces of gold per year.
 
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Currently unlisted public company.

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