Australian Companies Create Joint-venture Project in Alaska

Australian companies White Rock Minerals and Sandfire Resources have signed an earn-in and joint-venture option agreement for Sandfire to participate in White Rock’s multimetal Red Mountain project in central Alaska. The potential of the project is illustrated by 2018 field season results, which included drill-hole intercepts of more than 17% zinc, 6% lead, 1,000 grams (g)/metric ton (mt) silver, 6 g/mt gold, and 1.5% copper, as well as discovery of new massive sulphide mineralization at the Hunter prospect.

Sandfire can earn up to 51% of White Rock’s 100% interest in the Red Mountain project by spending A$20 million on exploration over four years, with a minimum of A$6 million to be spent in 2019. Following completion of the exploration spending requirement, Sandfire can elect to increase its interest in the project to 70% by sole-funding a further A$10 million and delivering a prefeasibility 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 475-km2 land package covering numerous historic volcanic massive sulphide (VMS) prospects with little modern exploration, providing the companies with a large strategic footprint over a potential new VMS district.

“White Rock welcomes Sandfire as a joint-venture partner that shares White Rock’s vision for the exploration and development of our exciting Red Mountain project,” White Rock Managing Director and CEO Matt Gill said. “Securing a high-quality partner with world-leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of our globally significant, high-grade VMS Red Mountain project.”

As featured in Womp 2019 Vol 05 -