White Rock Minerals (ASX:WRM) - Quarterly Activities & Cashflow Report

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White Rock Minerals Limited (ASX: WRM; OTCQX:WRMCF), (‘White Rock’ or ‘the Company’) is pleased to report on its activities for the quarter ended 30 June 2022.

Highlights

 

Woods Point Gold Project, Victoria

  • Diamond drilling at Woods Point that began in October 2021 has identified up to five potential gold production areas at the high-grade Morning Star Underground Gold Mine, with mining on track to restart in Q3 of 2022.
  • The Gap Zone represents an area underground with 200 metres of vertical extent between areas of historic mining with historical production1 of 883,000oz gold at 26.5g/t Au.

    • The first phase of drilling in the Gap Zone returned 0.4m @ 740 g/t gold2 (23 ounces per tonne) from a quartz reef interval with visible gold.
    • A second significant intercept of 0.25m @ 972 g/t gold3 (31 ounces per tonne) in a quartz reef interval with abundant visible gold from the Achilles Reef was reported after Quarter end.
  • The Exhibition Reef is a parallel mineralised quartz structure above the Dickenson Reef at the southern end of the mine and located around 4 Level that includes a “high-grade” gold target area that is potentially more than 100m in strike length and up to 40m down-dip.

Red Mountain silver-zinc VMS and IRGS Project, Alaska

  • White Rock acquired a new high-grade gold project identified within the Tintina Gold Province, Alaska, during the Quarter5.
  • Highlights of the White Gold Project from historic exploration include:
    • 19.0m @ 4.0g/t gold including 2.6m @ 11.2/t gold in surface trenching and 27.1m @ 3.1g/t gold from 88.3m including 1.2m @ 23.1g/t gold (WG11-02) at the Shalosky Prospect.
    • 9.8m @ 8.6g/t gold including 3.8m @ 14.3g/t gold in surface trenching and 20.0m @ 2.5g/t gold from 34.4m including 2.2m @ 17.4g/t gold (WG11-05) at the Low Prospect.
    • 18.0m @ 9.1g/t gold including 4.0m @ 33.8g/t gold in surface trenching at the Goldberg Prospect.
    • 28.0m @ 3.0g/t gold including 3.3m @ 16.4g/t gold in surface trenching at the Hunter Prospect.

Mt Carrington Gold and Silver Project, NSW

  • White Rock and Thomson Resources (ASX:TMZ) finalised and executed an agreement6 to amend the initial joint venture agreement over the advanced Mt Carrington gold and silver
  • Thomson will continue to manage the project and fund site care and maintenance costs until the formation of a Joint Venture on a 51:49 or 70:30
  • Agreement provides for a two-stage exploration earn-in and option to joint venture agreement focused on exploration activities on the Mt Carrington
  • Thomson can earn 51% of the project by spending $5M over three years and will be able to earn up to 70% of the project by spending a further $2M over a further two years under the amended.

 

Matt Gill, Managing Director and CEO of White Rock Minerals comments: 

 

Matt-modifiedThe team on-site at Woods Point – our gold mine in Victoria, is making great strides as it continues to drill in-mine targets at the Morning Star Gold Mine. We have already identified five potential near-term mining areas above 9 Level, and recruitment and development to access two of these gold-bearing reefs have already commenced.

 

"The diamond drill has also been doing a broad-spaced first pass of the under-explored Gap Zone, between 9 and 14 levels. There, we have already hit super high grade – 2 intercepts over 700 g/t gold.

In Alaska, we acquired a highly prospective exploration package called White Gold, with up to eight prospects, where historical results carry grades between 14 and 33 g/t gold.

Alongside this, we signed an exploration earn-in and option to joint venture our advanced gold and silver project at Mt Carrington in NSW. Our JV partner – ASX-listed Thomson Resources – will manage this program and we will be free-carried during this time.

It’s been a busy time for White Rock and we look forward to becoming a gold producer in the next few months."

 

Corporate

  • Appointment of Mr Peter Mangano as non-executive Chairperson7.
  • Retirement of Mr Peter Lester7 as non-executive Chairperson and the retirements of Mr Jeremy Gray8 and Mr Christopher Wellesley8 as non-executive
  • Signed non-binding term sheet in connection with a convertible note and equity facility with Obsidian Global Partners9:
    • Obsidian will initially invest $2.5 million; and
    • Obsidian may invest up to $30 million over a 24-month period by way of a combination of convertible notes and new fully paid ordinary
  • Placement of 15,979,003 shares raised approximately $2.4 million before costs at a  price of $0.15 per share10.
  • These funds after costs will be used for:
    • Recruitment, re-capitalisation, pre-production development, and commencement of gold production at the Morning Star Gold Mine.
    • Working capital.
    • Red Mountain Care & Maintenance – commitment for further exploration once the Morning Star Gold Mine becomes cash flow.

View the full announcement here.

 

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