Red Mountain

Red Mountain is a 100% owned, globally significant, zinc-rich volcanogenic massive sulphide (“VMS”) project located in central Alaska, USA. The area has had historic exploration from 1975-1999 and has significant upside using modern technology and techniques.

White Rock controls a highly prospective land position of 475km2.

Red Mountain has two identified deposits (Dry Creek and West Tundra Flats) providing White Rock with a Maiden Resource base of 16.7Mt at 8.9% ZnEq including a high-grade component of 9.1Mt @ 12.9% ZnEq, and newly discovered massive sulphide mineralisation at the Hunter prospect.

This makes Red Mountain one of the highest grade and most significant deposits of any zinc company listed on the ASX.

White Rock joined forces with Sandfire Resources (ASX:SFR) in March 2019 to fund the exploration and development for Red Mountain.

Sandfire's Joint Venture funding obligations are structured across four stages and include an option to spend a minimum of A$20M over four years to earn 51% of the project, with a minimum contribution of A$6M in 2019. The key terms of the Joint Venture are:

  • White Rock has signed an Earn-In and Joint Venture Option Agreement to permit Sandfire to farm-in to its interests in the Red Mountain Project including high grade zinc-rich VMS mineralisation at the Dry Creek and West Tundra deposits and the newly discovered Hunter prospect.

  • Sandfire can earn up to 51% of White Rock’s interest in its Red Mountain Zinc-Silver-Lead-Gold-Copper Project by spending A$20M on exploration over four years (Stage One).

  • As a part of Stage One, a minimum of A$6M is required to be spent on the project in Year One (2019).

  • Sandfire can then elect to increase its interest in the Red Mountain Project to 70% by sole-funding a further A$10M and by delivering a pre-feasibility study with an Ore Reserve within a further two years.

  • White Rock can then elect to contribute its percentage share of expenditure to retain its 30% interest.

  • The Red Mountain Project includes a 475km² tenement package covering numerous historic VMS prospects with little modern exploration, providing Sandfire and White Rock with a large strategic footprint over a potential new VMS district.

Stages

Stage One - Exploration

  • Sandfire can earn 51% equity by spending A$20 million over four years

  • Minimum commitment of A$6m in Year One (2019)

Stage Two - PFS

  • Sandfire can increase to 70% equity by spending further A$10 million over two years and delivering a Pre-Feasibility Study

Stage Three - DFS

  • Sandfire to complete a Definitive Feasibility Study.

  • White Rock can choose to contribute its percentage share of expenditure to retain its interest.

  • Alternatively, if Sandfire sole funds DFS, its interest increases to 80%

Stage Four - Development

  • White Rock can choose to contribute its percentage share of expenditure to retain its interest.

  • Alternatively, if Sandfire sole funds DFS, its interest increases to 90% and White Rock must repay 10% of total capital out of cashflow

 
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Infrastructure and Access

Alaska is ranked in the top 10 globally by the Fraser Institute in terms of its investment attractiveness and the Red Mountain project is well located in Central Alaska with respect to existing infrastructure and logistics.

Project highlights include:

  • Major road and rail access located just 120km to the west, and 85km to the north, of the project

  • Connection to the major port at Anchorage, about 400km to the south

  • Access to fresh water

  • No community or environmental legacy issues

  • Close to an established mining hub at Fairbanks, servicing mines including Pogo, Fort Knox and Usibelli.

 
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