White rock signs $30m farm-in agreement with Sandfire
White Rock Minerals (ASX: WRM) has joined forces with Sandfire Resources (ASX: SFR) to fund exploration and development of new high-grade zinc and precious metals volcanogenic massive sulphide deposits at the Red Mountain project in central Alaska, under an earn-in and joint venture agreement valued at $30 million. There are already two high-grade deposits at the project with an Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq for 1.1Mt of contained zinc equivalent.
White Rock Minerals (ASX: WRM) and Sandfire Resources NL (ASX:SFR) (Sandfire) have joined forces to fund the exploration and development for new high-grade zinc and precious metals volcanogenic massive sulphide (VMS) deposits at Red Mountain in central Alaska (Red Mountain Project). There are already two high grade deposits at the project with an Inferred Mineral Resource1 of 9.1 million tonnes @ 12.9% ZnEq for 1.1Mt of contained zinc equivalent.
• White Rock has signed an Earn-In and Joint Venture Option Agreement to permit Sandfire to farm-in to its interests in the Red Mountain Project including high grade zinc-rich VMS mineralisation at the Dry Creek and West Tundra deposits and the newly discovered Hunter prospect.
• Sandfire can earn up to 51% of White Rock’s interest in its Red Mountain ZincSilver-Lead-Gold-Copper Project by spending A$20M on exploration over four years (Stage One).
• As a part of Stage One, a minimum of A$6M is required to be spent on the project in Year One (2019).
• Sandfire can then elect to increase its interest in the Red Mountain Project to 70% by sole-funding a further A$10M and by delivering a pre-feasibility study with an Ore Reserve within a further two years.
• White Rock can then elect to contribute its percentage share of expenditure to retain its 30% interest.
• The Red Mountain Project includes a 475km² tenement package covering numerous historic VMS prospects with little modern exploration, providing Sandfire and White Rock with a large strategic footprint over a potential new VMS district
MD & CEO Matt Gill said “White Rock welcomes Sandfire as a joint venture partner that shares White Rock's vision for the exploration and development of our exciting 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 our globally significant high-grade zinc VMS Red Mountain Project.
"It is significant for White Rock shareholders that the terms of the Agreement with Sandfire provide a funding pathway to advance the Red Mountain Project through exploration to the point of advanced development studies and allow White Rock to retain a 30% interest in any project development at the point when the economics of a project are well defined by a Pre-Feasibility Study.
"The prospectivity of the Red Mountain Project was well illustrated by last year’s field season activities that included drill hole results returning in excess of 17% zinc, 6% lead, 1,000 g/t silver, 6 g/t gold and 1.5% copper and the discovery of new massive sulphide mineralisation at the Hunter prospect4, 5, 6. The 2019 field season promises more exciting results with plans for a modern airborne EM survey, ahead of a 24-man field camp being established with surface crews completing mapping, geochem sampling, CSAMT geophysics and drilling.
"We look forward to working with our strategic partner Sandfire and progressing this highly prospective project with the commencement of this program and the subsequent news flow that will result.”