HIGHLIGHTS LAST CHANCE GOLD TARGET, RED MOUNTAIN PROJECT, ALASKA
30 September 2020 Quarterly Activities & Cashflow Report
- Encouraged by on-ground geological reconnaissance activities, the Company expanded its land package around Last Chance with the addition of a further 240km2 with the Red Mountain Project now comprising 798km2 of district-scale tenements, prospective for silver rich zinc VMS and gold IRGS targets.
- Surface gold anomalies and hydrothermal silica breccia structural targets at Last Chance were drill tested at the Pickle, Sidewinder West, Double Down and Sidewinder Blowout prospects. Many of these initial targets remain for follow-up drill testing in 2021, along with several targets yet to be drill tested at all.
- The most visually encouraging intercept encountered to date is an interval of approximately 56m of quartz veining, silica breccia and trace arsenopyrite from 265m downhole in hole LC20-06 at the Sidewinder Blowout target. Assays for this hole are awaited.
- Limited assay results from the first two drill holes at the Pickle prospect confirm sparse low-grade gold mineralisation associated with the hydrothermal silica breccia bodies with up to 0.4g/t gold.
- Drill assay results for the remaining six drill holes at Pickle, Sidewinder West, Sidewinder Blowout and Double Down are expected to be gradually returned over the next 4 to 6 weeks (assay laboratories currently overloaded).
- Geology and results from exploration to date support the interpretation that the erosional level at Last Chance is within the upper brittle regime of a very large orogenic and/or Intrusion Related Gold System with potential for more favourable gold deposition at depth.
- A 2,700 line km airborne magnetic and radiometric survey was flown across an area of 400km2 centred on the large Last Chance gold target and this will assist in prioritising drill targets for the 2021 field season.
- Four lines of CSAMT geophysics were completed across the central gold target area. It is anticipated that a final report will be received in the next few weeks with interpretation guiding planned follow-up for the 2021 field season.
- An additional 131 regional stream sediment samples were collected over the expanded tenement package to the west and south of Last Chance. Results are expected over the next 6 to 8 weeks.
- Encouraging additional soil and rock chip sampling of new VMS prospects to the north of Last Chance were also completed with these results expected to be returned over the next 4 to 6 weeks also. MT CARRINGTON PROJECT, NSW
- A Stage One (Gold First) 2020 Pre-Feasibility Study Update Report, using A$2,300/oz gold price, was released during the quarter: ? Free cash flow of A$126M (pre-tax) over its initial five years of operation. ? NPV (pre-tax 8%) of A$93M and an 82% IRR. ? Capital cost of A$39M with a payback of just 14 months. ? Gold Stage One All-In Sustaining Costs (AISC) of A$1,327/oz. ? Average gold sales of 35,500oz per annum. ? Open Pit Probable Ore Reserve of 4.1 Mt at 1.3 g/t gold for 174,000 oz.
Completion of a $15.85 million capital raise during the Quarter sees the Company well-funded to pursue a successful discovery at its Red Mountain Project.
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About White Rock Minerals Ltd
White Rock Minerals Ltd (ASX:WRM) is a diversified explorer and near-stage producer, headquartered in Ballarat, Victoria. The Company's flagship exploration project is Red Mountain in central Alaska. At Red Mountain, there are already two high grade zinc - silver - gold - lead VMS deposits, with an Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq for 1.1 million tonnes of contained zinc equivalent. The Company is also exploring its recently discovered large intrusion related gold anomaly at Last Chance, also located in the Tintina gold belt of Alaska, home to multi-million gold ounce deposits like Pogo, Fort Knox and the Donlin Project. The Company also has the Mt Carrington project, located near Drake, in Northern NSW, which is a near-production precious metals asset with a resource of 341,000 ounces of gold and 23.2 million ounces of silver on an approved mining lease, and with a Gold First PFS and JORC Reserve. White Rock Minerals is listed on the Australian Stock Exchange.
White Rock Minerals Ltd