White Cliff Minerals Ltd (ASX:WCN) Drilling Intersects More Cobalt Mineralisation at Coglia Well

White Cliff Minerals Limited (ASX:WCN) ("White Cliff" or the "Company") is pleased to provide an update on exploration drilling conducted at its 100%-owned Coglia Well cobalt-nickel project near Laverton in the Western Australian goldfields.

Highlights:

- Drilling identifies further wide intervals of cobalt and nickel mineralisation including:

o 17 metres at 0.11% cobalt and 1.01% nickel from 78 metres including;

-- 6 metres at 0.22% cobalt 1.6% nickel

-- Single metre cobalt grades of 0.49% and 0.29%

-- Hole ended in mineralisation

o Adjacent to drill hole MERC004 containing 20 metres at 0.05% cobalt and 1.3% nickel

o Anomalous copper values in several holes

- Multiple holes end in mineralisation

- Mineralised zone is 1,000 metres wide and 10-20 metres thick

- Further assays due shortly

The Company has received further assay results. However, significant cobalt-nickel mineralisation has been identified in several consecutive holes extending across a width of 800 metres (section line 6,790,800 North), with assay results including:

CGAC0026: 17 metres at 0.11% cobalt and 1.01% nickel from 78 metres depth including;

6 metres at 0.22% cobalt and 1.6% nickel (hole ended in mineralisation)

CGAC0025: 10 metres at 0.04% cobalt and 0.3% nickel from 43 metres (hole ended at silica layer above ore zone)

CGAC0027: 16 metres at 0.04% cobalt and 0.3% nickel from 45 metres (hole ended at silica layer above ore zone)

CGAC0028: 10 metres at 0.04% cobalt and 0.5% nickel from 48 metres (hole ended at silica layer above ore zone)

Several holes ended in cobalt-nickel mineralisation but drilling did not consistently penetrate the silica layer immediately above the main cobalt-nickel mineralised zone. The silica layer was too hard for air core drilling equipment to penetrate so some holes did not penetrate to the deeper parts of the mineralised zone that occurs from 75-100 metres deep. Future drilling programs will require a reverse circulation drill rig.

Further assay results are due shortly for the southern two lines that if mineralised will confirm the grade and scale of the cobalt and nickel mineralisation identified in previous drilling. The Company will then commence metallurgical test work to evaluate processing methods and economics.

White Cliff Managing Director Todd Hibberd said: "The second batch of assay results from the Coglia cobalt project has identified more cobalt and nickel mineralisation that is 10-20 metre thick and up to 1000 metres wide. The width and thickness of the mineralised layer is very encouraging considering these results are 3 kilometres north of the previously released results suggesting that the deposit has good length continuity. Interestingly, the results are associated with copper anomalies suggesting that there may be a sulphide component to the mineralisation."

Cobalt and Nickel Mineralisation

Laboratory assay results for sections 6790800N and 67900160N identified cobalt and nickel mineralisation over widths up to 20 metres. Mineralised intervals include:

CGAC0026: 17 metres at 0.11% cobalt and 1.01% nickel from 78 metres depth including;

6 metres at 0.22% cobalt and 1.6% nickel (hole ended in mineralisation)

CGAC0025: 10 metres at 0.04% cobalt and 0.3% nickel, from 43 metre (hole ended at silica layer above ore zone)

CGAC0027: 16 metres at 0.04% cobalt and 0.3% nickel from 45 metres (hole ended at silica layer above ore zone)

CGAC0028: 10 metres at 0.04% cobalt and 0.5% nickel from 48 metres (hole ended at silica layer above ore zone)

CGAC0024: Abandoned before reaching target depths

Other holes completed on this line include:

MERC004: 20 metres at 0.05% cobalt and 1.3% nickel from 77 metres

MPRC020: 30 metres at 0.022% cobalt and 0.53% nickel from 46 metres

MPRC002: 21 metres at 0.4% nickel (no cobalt assays) from 49 metres (ended in mineralisation)

MPRC003: 10 metres at 0.74% nickel (no cobalt assays) from 62 metres (ended in mineralisation)

MPRC004: 6 metres at 0.5% nickel (no cobalt assays) from 67 metres (ended in mineralisation)

Cobalt mineralisation occurs as a flat sub-horizontal layer in the regolith profile slightly above and overlapping with nickel mineralisation approximately 16-20 metres thick and 40-100 metres below the surface. Higher grade cobalt mineralisation identified in previous drilling also occurs on the same northing further east in MERC004 which intersected 20 metres at 0.05% cobalt and 1.3% nickel from 77 metres.

In general, several holes ended in cobalt-nickel mineralisation but drilling did not consistently penetrate the silica layer immediately above the main cobalt-nickel mineralised zone. The air core drilling equipment was unable to penetrate the silica layer and did not penetrate to the deeper parts of the mineralised zone that occurs from 75-95 metres deep. Due to hard ground conditions further drilling programs will be conducted with a larger drill rig.

Copper Anomalism

Several holes contain copper anomalies greater than 200 ppm in the regolith layer immediately above and overlapping with the cobalt and nickel mineralisation. Because copper is a mobile ion it tends to migrate to the reduction-oxidation boundary at the top of the water table. This concentration can indicate the presence of sulphide mineralisation. The Company will reassess the potential for copper sulphide mineralisation once all results have been received.

About the Coglia Well Nickel-Cobalt Deposit

The Coglia ultramafic complex covers an 11.5 kilometre by 1.5 kilometre area and is part of a 100 kilometre-long trend of ultramafic rock running from Diorite Hill in the north to Mulga Tank in the south. At Coglia Well, approximately 2.5 kilometres of the 11.5 kilometres of strike have been partially drill tested, resulting in the identification of extensive cobalt and nickel mineralisation.

Drilling has been undertaken on wide spaced lines generally 650 metres apart with holes spaced at 320-metre intervals. The 2018 drilling program has infilled this to 160 metre hole spacing. Cobalt and nickel mineralisation occurs on all lines between 40 and 100 metres depth. Mineralisation has developed in the regolith profile above a weathered ultramafic unit which was originally a dunite (an olivine rich ultramafic rock). A series of existing drill programs (2001-2003) outlined cobalt and nickel mineralisation over a zone approximately 2.5km long by 500 metres wide and 10-15 metres thick. Mineralisation is open along strike in both directions. Drilling in 2018 has extended the mineralisation to approximately 4 kilometres long.

The cobalt grade appears to increase substantially to the south of the main mineralisation, which is consistent with the grade of Glencore PLC's adjacent Irwin Hills cobalt and nickel deposits which contain 29Mt at 0.11% cobalt and 1% nickel. A single RC hole, MERC005, drilled 2.5 kilometres south of the main mineralisation, encountered 28 metres at 0.12% cobalt and 0.55% nickel. There is a further 7 kilometres of untested prospective ultramafic rock to the tenement boundary adjacent to Glencore's deposit.

Cobalt mineralisation occurs as a shallow layer of manganiferous oxides that form between the smectite clays and the overlying ferruginous clays. High grade cobalt mineralisation typically occurs between 30-50 metres depth and is associated with nickel mineralisation. The cobalt mineralisation generally occurs slightly higher than nickel mineralisation in the regolith profile.

At Coglia Well there is substantial nickel mineralisation and the cobalt mineralisation discussed above has formed from the same processes. The Company believes that the cobalt mineralisation has the potential to economically extractable in its own right. The proximity of the project to Glencore's Murrin-Murrin nickel-cobalt processing plant is likely to strongly impact the possibility of economic development of both the cobalt and nickel mineralisation.

While White Cliff has not yet calculated any mineral resources it is clear that potential exists for a substantial resource. Historic drilling has only tested a small fraction of the mapped ultramafic unit indicating there is potential to locate significant additional mineralisation.

Regional Infrastructure

The Coglia Well nickel and cobalt deposit occurs in a region hosting multiple mining operations that have substantial existing infrastructure such as roads, telecommunications, power and gas and with access to a skilled mining workforce. The project is located 130km via road from Glencore's Murrin Murrin nickel-cobalt processing plant and is adjacent to their Irwin Hills nickel-cobalt deposit. The region is well serviced by transport services and airports.

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About White Cliff Minerals Ltd

White Cliff Minerals is a Gold, Copper, Cobalt, Nickel resources and mining company listed in Australia (ASX:WCN). The Company is focused on developing low cost high value mineral deposits that have near term cash flow potential.

Major projects include the Aucu gold deposit that contains 484,000 ounces of gold (3mt at 5.1 g/t) starting at surface and Chanach copper deposit that contains 64,000 tonnes of copper (17.2Mt at 0.37% copper). Both projects have substantial blue sky potential with drilling covering only 5% of the known structures. In Australia the company is developing the Coronation Dam cobalt–nickel deposit where a maiden resource will be announced in the late 2018.

   

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