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White Rock Minerals closing in on Mt Carrington gold-silver development

White Rock Minerals moves towards developing its Mt Carrington gold-silver project in New South Wales.
White Rock Minerals closing in on Mt Carrington gold-silver development
Matthew Gill, managing director, White Rock Minerals.

White Rock Minerals (ASX:WRM) has assembled a highly skilled team to deliver its definitive feasibility study and environmental impact statement for its Mt Carrington gold-silver project in New South Wales.

This multi-disciplinary team of experts, from across six different consultancy groups, brings together the necessary expertise to advance the project from scoping study through to definitive feasibility study (DFS).

Mt Carrington has a JORC resource of 338,000 ounces of gold and 23.4 million ounces silver with a projected free cash flow of over A$100 million from an initial 7 year mine life.

Recent studies have shown significant potential for expanding the in-pit Mineral Resource inventory, which could then flow through to increased mine life and / or higher gold and silver production rates.

White Rock is in the enviable position of already having secured a transformational financing package with Cartesian Royalty Holdings.

Matt Gill, managing director, commented: “We are very excited to be at this point in the project’s development, having successfully raised some $4.9 million, before costs, late last year to undertake this work.”


Next steps

The assembled study team’s initial priorities will be:

- Community consultation strategy and engagement;
- The preparation and submission of the project’s preliminary environmental assessment;
- A geological review of the resource to JORC 2012 standard; and
- A detailed review and commencement of the metallurgical test work needed to lock down the preferred plant design.


Financing advantage

Once the DFS and environmental impact statement (EIS) are completed and the necessary approvals obtained, White Rock is in the enviable position of already having secured a financing package with Cartesian Royalty Holdings.

The future streaming financing component (Phase II) provides for the construction and commissioning of the Mt Carrington Project with repayments to be made from a percentage of future gold and silver production from Mt Carrington.

Hence, the Phase II repayments would not require White Rock to undertake dilutive share issues to raise this construction financing.

The funding proposal will directly provide for construction and commissioning through to commercial production, subject to the successful delivery of the DFS.


Background

White Rock’s cornerstone asset is the 100% owned Mt Carrington project where shallow resources totalling 338,000 ounces of gold and 23.4 million ounces of silver have been defined.

It is located 5 kilometres from the township of Drake in northern New South Wales and is on the Bruxner Highway.

Mt Carrington is a gold and silver development asset with a low capex of circa A$30 million which includes the DFS and EIS.

The estimated initial 7-year mine life will provide a 10 month payback and generate over $100 million in free cash flow.

It also has the potential for high grade gold-silver at depth and for copper porphyry mineralisation.


Analysis

The assembling of the study team marks another milestone on the pathway to the development of Mt Carrington.

At current commodity prices for gold and silver, the scoping study financial metrics remain robust, with considerable upside potential for expanding the in-pit resource.

An expansion could flow through to increased mine life and higher gold and silver production rates.

This potential uplift would further enhance the strong financial metrics of the project, where the current scoping study results already deliver a compelling investment proposition with a pre-tax net present value of A$60.6 million and an internal rate of return (IRR) of over 100%.

Not many projects on the drawing board currently possess two of the better performing commodities (gold and silver) and generate these sorts of robust financial outcomes.


Find out more from Matthew Gill, managing director, at Proactive's Spotlight CEO Sessions.

Click on a link below to register :

- Melbourne: Tuesday, 31st January.
- Sydney: Wednesday, 1st February.
- Call office on (02) 9280 0700.
- Email Pauline here.


Presenter list

- White Rock Minerals (ASX:WRM); Matthew Gill
- Carnarvon Petroleum (ASX:CVN); Adrian Cook.
- Great Boulder Resources (ASX:GBR); Stefan Murphy.
- Elk Petroleum (ASX:ELK); Brad Lingo.
- Petsec Energy (ASX:PSA); Maki Petkosvki.

View full WRM profile View Profile

White Rock Minerals Ltd Timeline

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