White Rock ready to explore at Alaskan zinc project
White Rock Minerals Ltd (ASX:WRM) has updated themarket on its plans to conduct a comprehensive exploration program at its 100%owned zinc VMS project at Red Mountain, Alaska.
The company has now completed the mobilisationof the major items necessary for its planned exploration program, with thediamond drill rig and camp accommodation, as well as support infrastructure, nowat the camp site alongside the airstrip at Newman Creek.
Mobilisation of the drill rig and camp accommodation at Red Mountain.
Last month it announced it had awarded the drilling contractto Frontier Exploration, just days after Canada's oldest and largestindependent research firm, Fundamental Research Corp, started covering the small-cap. FRC'scoverage represents the third independent valuation, with DJ Carmichael andIndependent Investment Research releasing reports about WRM last year.
In the report, FRC values the Red MountainZinc-Silver VMS Project at A$42.6 million, equivalent to 5 cents per WRM share.The company's share price is currently $0.009.
Get the latest articles straight to your inboxkeep me postedThe company's upcoming field exploration work isplanned to include:
a targeted diamond drilling program aimed atin-fill and expansion of the high-grade maiden Resource;on-ground orientation EM and possiblygeochemistry exploration across the two already identified deposits;
regional application of the best geophysicsand geochemistry exploration tools determined from the on-ground orientationwork, and
a follow-up diamond drilling program on thebest of the more than 30 already identified exploration targets.
At the same time, WRM is currently undertaking a share placement andentitlement offer, with the aim of raising a total of A$5.2 million to fund explorationactivities at Red Mountain.
It should be noted that WRM is an early stage play and anything canhappen, so seek professional financial advice if considering this stock foryour portfolio.
Plans for the Red Mountaindrilling campaign
Depending on weather, the initial drilling campaignis set to commence in late May or early June, with the key objective of infillingand extending the maiden Resource which already has two identified deposits - DryCreek and West Tundra Flats.
Red Mountain already has a Resource base of16.7Mt at 8.9% zinc equivalent including a high-grade component of 9.1Mt @12.9% zinc equivalent. The last round of drilling undertaken at Red Mountainwas in the 1990s, and returned the following intersections:
WRM Managing Director and CEO, Matt Gill commentedon today's announcement:
"The company is very excited about thepotential for its globally significant high-grade Zinc VMS Project at RedMountain, and the news flow that should come from a successful explorationprogram here. The company announced an Equity Raising of up to $5.2 millionthrough a Placement and Entitlement Offer on 21st March.
"We have successfully closed the Placementcomponent, heavily over-subscribed, raising A$1.6M (before costs). Existingeligible shareholders now have an opportunity to participate through the 1 for3 partially underwritten pro-rata non-renounceable entitlement offer of fullypaid ordinary shares and 1 for 2 unlisted options, to raise up to $3.6 million.The first A$1.6M of this Entitlement Offer is underwritten by DJ Carmichael.
"The funds raised from the Equity Raising(after costs) will be used to fund White Rock's exploration activities at itsglobally significant high-grade zinc VMS Red Mountain Project in Alaska and forgeneral working capital purposes. It is planned that approximately two thirdsof this will go directly into the ground at Red Mountain, either from the drillprogram, or the on-ground geochemistry and geophysics work programs.
"This two-pronged exploration approach shouldgenerate significant news flow as we drill to infill and expand the existinghigh-grade maiden Resource and identify the next round of drill targets thatshould come from the more regional geophysics and geochemistry explorationprograms planned.
"Since acquiring the Red Mountain project inearly 2016, we have expanded our strategic footprint 10-fold, to 143km2,and have also released a maiden Mineral Resource that immediately placed theRed Mountain Project in the top quartile of undeveloped high-grade VMS (zinc,silver, gold) deposits globally.
"Importantly, the two deposits identifiedwithin the company's extensive land holding immediately placed the Red Mountainzinc project as one of the highest grade and more significant deposits of anyzinc company listed on the ASX and an important VMS asset within a globalcontext. Our drill program for the 2018 summer field season aims to furtherbuild on our geological knowledge of the mineralisation, increase confidence inthe Resource base, expand the already globally significant Resources at theexisting deposits and discover new deposits.
"We will, in parallel with the drilling program,also be conducting on-ground geophysics and geochemistry, testing many of the30 already identified exploration targets developed from historic shallow EMand historic surface geochemistry, and explore the system for VMS related goldpotential. We plan to drill the best of these regional targets towards the endof this drilling campaign."
High priority conductors (pink) on a conductivity depth slice at 40metres below surface from the 1D inversion of airborne electromagnetics at RedMountain.
It's worth noting here that this is an early stage play and investorsshould seek professional financial advice if considering this company for theirportfolio.
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