Mt Carrington Gold‐Silver Project ‐ Positive Scoping Study
White Rock Minerals Ltd (ASX:WRM) has completed a robust scoping study on the Mt Carrington gold silver project in northern NSW. The study results confirm the potential for a medium‐scale low cost production profile of 40,000 oz AuEq1 per year with strong financial returns, based on an estimated capital expenditure of $24M and short payback timeframe of less than 18 months. The results of the study strongly support White Rock’s vision of accelerating the development of a gold‐silver operation at Mt Carrington in the next 18 months, subject to continued positive results from feasibility studies.
Highlights:
● Proposed initial development – 40,000oz AuEq per year @ $869 / oz cash cost
● Capital Costs of $24M (processing plant and mine infrastructure)
● Undiscounted project value of $68M ($97M pre‐tax)
● $40M NPV at a 10% discount rate ($60M NPV pre‐tax)
● IRR of 67% (92% pre‐tax)
● Capital payback within 18 months
● 6 year open pit mining operation with production of 107koz gold and 6.9Moz silver
● 0.8Mtpa floatation and CIL circuit to produce silver‐gold concentrate and bullion
● Overall 85% recovery for all deposits
● Average open pit strip ratio of 2.4 : 1
The strategic relationship comprises the following elements:
• A $2.5 million equity placement - a placement of 208,333,334 fully paid ordinary shares in White Rock at A$0.012 (1.2 cents) per share and the issue of 104,166,667 unlisted options to subscribe for White Rock shares to raise A$2.5 million. The issue price of the shares represents a 41% premium over the one-month volume-weighted-average price of White Rock shares (0.85 cents) up to and including 9 July 2018. The options have an exercise price of A$0.02 (2 cents) and expire 3 years from the date of the agreement. Following completion of the share placement, Sandfire will own approximately 14.2% of White Rock. The proceeds will be used to advance exploration activities at the Red Mountain Project and for general working capital purposes. No shareholder approval is required for the placement.
• Technical Collaboration - the formation of a technical committee for the purposes of jointly collaborating in connection with the Red Mountain Project including identifying best options for advancement of the Project.
• Option for Earn-in and Joint Venture over Red Mountain Project - Sandfire will have the right and exclusive option to enter into an earn-in joint venture agreement in relation to the Red Mountain Project, which option may be exercised prior to 31 December 2018. If the option is exercised, the parties will negotiate, agree the form of and enter into an earn-in and joint venture agreement reflecting the following principles:
o Stage 1: Sandfire to fund a total of A$20 million over four years to earn 51%, with a minimum expenditure by Sandfire of A$6 million in Year One.
o Stage 2: Sandfire to fund a further A$10 million and deliver a pre-feasibility study over an additional two years to earn 70%, which may be extended by Sandfire for a further year in certain circumstances.
o Stage 3: White Rock may elect to contribute to the joint venture. If White Rock elects not to contribute, Sandfire can solely fund Stage 3 to earn 80% by completion of a definitive feasibility study.
o Stage 4: White Rock may elect to contribute to the joint venture. If White Rock elects not to contribute, Sandfire will earn 90% and White Rock's 10% interest will be earned from project cash flow.
o Project Management: White Rock is entitled to continue managing the project for at least the first year of the earn-in and to be paid a management fee. Ongoing management responsibility of the project will be subject to annual review and after the first year will be at Sandfire's election.
• Anti-dilution Protection - an anti-dilution right enabling Sandfire to maintain its interest in White Rock, subject to obtaining an appropriate ASX waiver.
• Board Nomination Right - a board nomination right enabling Sandfire to nominate a non-executive director to White Rock's Board should Sandfire's shareholding interest in White Rock reach 15%.
Finished up 15%.White Rock Minerals has announced a cornerstone investment and strategic relationship with Sandfire Resources NL whereby the parties have entered into a subscription agreement to formalise the strategic relationship in relation to White Rock's globally significant high-grade zinc VMS Red Mountain Project in Alaska.
From the announcement:
The involvement of a huge mining company like Sandfire Resources should assist White Rock Minerals in advancing their Red Mountain Project. The WRM share price is up 30% today to 1.3c with more than 66 million shares having changed hands.
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A few Punters chasing this from "Off-screen" today when the Buy market Depth still looks ordinary. Could be wrong, but can be a sign of a leaky boat .... Just had an Investor Preso so could be off the back of that, or maybe some more news not too far down the track.
Kind of wish I'd bought a few more.
There was a 100:1 share consolidation end of July 20. That explains the difference in volume traded before and after consolidation.
WRM are looking for gold near the top of a mountain in Alaska. Good luck with this.
Lol .... For once that miss worked in my favour
Hey Pete .... Yeah I actually bought in just pre the consolidation. I assumed the Volume pre and post was still "relative" on the chart though?
For eg. 13th July Volume pre consolidation was a bit over 127 million shares traded but now shows on the chart as 1.2 million.
Today's Volume of around 2.8 million shares traded would have shown as 284 million pre consolidation I assume?
Anyway, Volume aside, I was lucky not to have bought more before the dump. Punters certainly weren't in the mood to hear that the drilling was incomplete and now have to wait till next year. Still not a dead duck though with their Mount Carrington prospect looking pretty good and plenty of cash in the coffers.
Lol ... Indeed .... It does sound pie in the sky, literally ... but you never know in Alaska! Lots of Elephants roaming in them there hills
Looks like they spent ~9 months to drill just 2000 metres; then after ~9 months they return basically no results with decent metal.
Yeah, kind of looks that way, although the weather wasn't kind. Still think there is potential here but I took the small bounce back as a chance to bail ... Out at .695 for a bit better than scratch ... win some lose some.
This is junior miner space; you need to keep your finger on the pulse of these companies all the time.
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