White Rock Minerals expands exploration program at Red Mountain
White Rock Minerals (ASX: WRM) has announced an additional US$1.5 million has been committed by joint venture partner Sandfire Resources to extend the current on-ground exploration activities into September at the Red Mountain high-grade zinc and precious metals VMS project in central Alaska.
· Sandfire has committed to an additional US$1.5M beyond the original A$6M for 2019 to expand the 2019 field season at White Rock’s Red Mountain high-grade zinc and precious metals VMS project in Alaska.
· Strong endorsement on the district-scale potential for this project.
· Funds will be prioritised to continue drilling into September.
· The total exploration budget for 2019 now in excess of A$8M.
· Drilling is focused on testing new targets with the potential to yield a significant discovery that will support a green fields development scenario.
There are already two high grade deposits at the Red Mountain Project, with an Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq2 for 1.1 million tonnes of contained zinc equivalent.
Sandfire is currently funding Stage One of an Earn-In and Joint Venture Option 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 package4 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."