White Rock Minerals Ltd (ASX:WRM) is taking great strides at its Red Mountain Zinc Project in Alaska supported by a cornerstone investment and strategic relationship with Sandfire Resources NL (ASX:SFR).
The two parties entered a subscription agreement in July to formalise this strategic relationship, which involves a $2.5 million equity placement, technical collaboration and an earn-in joint venture option.
Additional Sandfire support
This agreement has been followed up this week with an additional $1 million in funding from Sandfire to support exploration activities.
White Rock’s managing director and CEO Matt Gill stressed with investors at this week’s Proactive CEO Sessions the importance of the Sandfire involvement.
This has resulted in Sandfire becoming the company’s largest shareholder with a 12.7% stake.
Making strong progress
Gill said: “We’ve been there only three months, since mid-May, we’ve done over 3,000 metres of drilling since then, and some of our drill results are the best that have been achieved from that deposit.
“We’ve been telling the investment community about Red Mountain. It seems to have taken a while for that to get traction … but Sandfire certainly saw what we see, and that’s a great endorsement of the project.”
The Alaskan project, which is 100 kilometres south of Fairbanks, has 678,000 tonnes of zinc, 286,000 tonnes of lead, 53.5 million ounces of silver and 352,000 ounces of gold.
It is close to extensive mining infrastructure in a mining friendly jurisdiction and there is significant potential exploration upside in a highly prospective yet under-explored district.
In regards to the additional Sandfire support, Gill said: “This funding is further endorsement on the quality and prospectivity of our high-grade zinc and precious metals VMS project in Alaska.
“With this funding, we have been able to extend our drilling campaign into September and ramp-up our reconnaissance mapping and geochemical sampling works three-fold.
“This work is already credited with one massive sulphide discovery - Hunter.
“The funding will help White Rock continue implementing key exploration and development activities at Red Mountain and sets us up well for next year’s campaign.”
White Rock also has the Mount Carrington Gold-Silver Project in northeast New South Wales which hosts 341,000 ounces of gold and 23.2 million ounces of silver, including an initial reserve of 159,000 ounces of gold.
The company has started a definitive feasibility study at the project, which has extensive mining infrastructure in place.
Drill-ready exploration targets have also been identified to expand and/or extend mine life.
To view White Rock Minerals presentation from the CEO Sessions click here.