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White Rock Minerals explores opportunities to progress Mt Carrington Project in strong gold-silver price environment

Last updated: 12:41 10 Dec 2020 AEDT, First published: 12:40 10 Dec 2020 AEDT

White Rock Minerals Ltd - White Rock Minerals continues exploring opportunities to advance Mt Carrington Project in strong gold-silver price environment
White Rock "looks forward to exploring other opportunities in relation to advancing the Mt Carrington project".

White Rock Minerals Ltd (ASX:WRM) (OTCMKTS:WRMCF) is exploring opportunities to advance the Mt Carrington Gold-Silver Project, especially in a very strong gold and silver price environment.

This follows Koala Metals notifying White Rock that it is unable to meet conditions relating to closing a previously announced term sheet and accordingly has withdrawn from the agreement.

The term sheet’s objective was for WRM to enter a joint venture with Koala Metals to advance the gold and silver project at Mt Carrington in northern NSW.

PFS update

Mt Carrington is an advanced gold-silver epithermal project in the southern New England Fold Belt.

A 2020 pre-feasibility study (PFS) update into the ‘gold first’ development stage declared an ore reserve of 4.1 million tonnes at 1.3 g/t for 174,000 ounces of gold from within an overall mineral resource of 352,000 ounces of gold.

There is also a silver mineral resource estimate totalling 23 million ounces.

In a statement, the company said: "While White Rock acknowledges that Koala Metals is unable to proceed with the transaction as outlined in the term sheet, it looks forward to exploring other opportunities in relation to advancing the Mt Carrington project."

Robust financial metrics

The Mt Carrington PFS financial metrics fare robust, especially in this strong gold and silver price environment.

Using a conservative A$2,300 per ounce, the 2020 gold first PFS financial metrics demonstrate a capital payback of just 14 months, an IRR greater than 80% and with free cash flow generated from the gold over its first five years of greater than A$120 million.

Last Chance gold target

While looking at options to commercialise Mt Carrington, White Rock is primarily focused on the Last Chance Gold Target within the Red Mountain Project in Alaska.

The company is highly encouraged by results from maiden exploration at Last Chance that are expected to result in an aggressive follow-up drill campaign in 2021.

White Rock has progressed with a program of eight diamond drill holes testing surface gold anomalies and hydrothermal silica breccia structural targets at the Pickle, Sidewinder West, Double Down and Sidewinder Blowout prospects.

Assay results for samples from a further three diamond drill holes have been received, with results confirming that the hydrothermal silica breccia bodies and quartz-arsenopyrite veins encountered in drilling and mapped at surface show a large system of strongly anomalous arsenic and antimony.

This is consistent with what has been interpreted to be the upper brittle levels of a very large orogenic and/or Intrusion Related Gold System (IRGS).

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