Mineral Resources

A maiden JORC 2012 Mineral Resource has been estimated at Red Mountain (ASX Announcement 26 April 2017). Highlights of the Mineral Resource are:

  • High grade Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq1 for 1.2Mt of contained zinc equivalent at a 3% Zn cut-off.
  • Total Inferred Mineral Resource of 16.7 million tonnes @ 8.9% ZnEq for 1.5Mt of contained zinc equivalent at a 1% Zn cut-off for Dry Creek, 3% Zn cut-off for West Tundra Flats & 0.5% Cu cut-off for Dry Creek Cu Zone.
  • Impressive base metal and precious metal content with 678,000t zinc, 286,000t lead, 53.5 million ounces silver and 352,000 ounces gold.
  • This Mineral Resource places the Red Mountain Project in the top quartile of undeveloped high-grade VMS (zinc, silver, lead, gold, copper) deposits globally2.
  • Mineralisation commences at surface and is open along strike and down dip.
  • Good preliminary metallurgical recoveries of >90% zinc, >75% lead, >80% gold, >70% silver and >70% copper.

Table 1: Red Mountain April 2017 Inferred Mineral Resource Estimate1

Table 2: Red Mountain April 2017 Inferred Mineral Resource Estimate1 at a 3% Zn Cut-off (contained within Table 1, not additional)

1 The Red Mountain Mineral Resource information was prepared and first disclosed under the JORC Code 2012 as per the ASX Announcement by White Rock Minerals Ltd on 26th April 2017.

Zinc equivalent grades are estimated using long-term broker consensus estimates compiled by RFC Ambrian as at 20 March 2017 adjusted for recoveries derived from historical metallurgical testing work and calculated with the formula:
ZnEq =100 x [(Zn% x 2,206.7 x 0.9) + (Pb% x 1,922 x 0.75) + (Cu% x 6274 x 0.70) + (Ag g/t x (19.68/31.1035) x 0.70) + (Au g/t x (1,227/31.1035) x 0.80)] / (2,206.7 x 0.9).

White Rock is of the opinion that all elements included in the metal equivalent calculation have reasonable potential to be recovered and sold.

2 Source – SNL, RFC Ambrian and company data.

Figure 4: Cross-section 480,285E looking towards the east through the Dry Creek deposit showing the geometry of the Fosters mineralised massive sulphide lens and drill intercepts.

Figure 5: Cross-section 484,200E looking towards the east through the West Tundra Flats deposit showing the mineralised massive sulphide lens and drill intercepts