ASX Release: 28 January, 2011 Quarterly Activities Report ‐ for the period ended 31 December 2010 ASX Code: WRM Shares on Issue: 56.8 million Options on Issue: 6.1 million Cash on hand as at 31 Dec: $9.1M Market Cap as at 27 Jan: $32.4M Quarter Share price range: 33.5c ‐ 60c Definition of shallow high grade silver in drilling at White Rock North prospect. Validation of supergene copper in drilling at Gladstone Hill prospect. Encouraging IP chargeability anomalies defined at Guyra project. Mt Carrington Mining Leases renewed for 10 years. HIGHLIGHTS Mt Carrington, NSW: Drilling completed on the White Rock North silver‐gold and Gladstone copper‐gold targets with encouraging results from White Rock North: o 21m @ 61 g/t Ag from 127m (hole WRDD008) o 51m @ 60 g/t Ag from 98m (hole WRDD009) including 7m @ 101 g/t Ag from 99m and 6m @ 204 g/t Ag from 122m o 10m @ 66 g/t Ag & 0.8 g/t Au from 281m (hole WRDD009) Note: Intersections are down hole widths Assay results from Gladstone drilling expected in early February. Rock chip samples including 9g/t gold and 485g/t silver define new high grade gold‐silver target at Henley’s Hope. 1,674 metres drilled in quarter. Guyra, NSW: IP survey completed on the Willow Glen and Washpool copper‐gold targets with encouraging results. Corporate: Listing of the company on ASX on 8 October 2010 Cash position of $9.1 million at quarter’s end For further information, please contact: Geoffrey Lowe (Managing Director) or Amber Rivamonte (Company Secretary) Phone: 03 5331 4644 E‐mail: [email protected]Web: www.whiterockminerals.com.au Media enquiries to: Simon Jemison Collins Street Media 03 9224 5319 E‐mail: [email protected]SUMMARY COMMENTS Following the listing of White Rock on the ASX on 8 October, drilling commenced at Mt Carrington in early November, focussed on 2 advanced prospects. Encouraging intersections were achieved at White Rock North, with results to be assessed for follow up in the first half of 2011. Visible copper was observed in drilling at Gladstone. At the Guyra project, an IP survey has defined a number of chargeability and resistivity anomalies which will be drill tested in February 2011. OUTLOOK Exploration will recommence in February 2011 with a number of drilling programs at Mt Carrington and Guyra targeting defined gold, silver and copper targets. For personal use only
15
Embed
Guyra, NSW: For personal use only - White Rock Minerals · define new high grade gold ... defined a number of ... The program encountered visible supergene and/or primary copper mineralisation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
ASX Release: 28 January, 2011
Quarterly Activities Report ‐ for the period ended 31 December 2010 ASX Code: WRM Shares on Issue: 56.8 million Options on Issue: 6.1 million Cash on hand as at 31 Dec: $9.1M Market Cap as at 27 Jan: $32.4M Quarter Share price range: 33.5c ‐ 60c
Definition of shallow high grade silver in drilling at White Rock North
prospect.
Validation of supergene copper in drilling at Gladstone Hill prospect.
Encouraging IP chargeability anomalies defined at Guyra project.
Mt Carrington Mining Leases
renewed for 10 years.
HIGHLIGHTS Mt Carrington, NSW: Drilling completed on the White Rock North silver‐gold and
Gladstone copper‐gold targets with encouraging results from White Rock North:
o 21m @ 61 g/t Ag from 127m (hole WRDD008) o 51m @ 60 g/t Ag from 98m (hole WRDD009) including 7m @ 101 g/t Ag from 99m and 6m @ 204 g/t Ag from 122m o 10m @ 66 g/t Ag & 0.8 g/t Au from 281m (hole WRDD009)
Note: Intersections are down hole widths
Assay results from Gladstone drilling expected in early February.
Rock chip samples including 9g/t gold and 485g/t silver define new high grade gold‐silver target at Henley’s Hope.
1,674 metres drilled in quarter.
Guyra, NSW: IP survey completed on the Willow Glen and Washpool
copper‐gold targets with encouraging results.
Corporate: Listing of the company on ASX on 8 October 2010
Cash position of $9.1 million at quarter’s end
For further information, please contact: Geoffrey Lowe (Managing Director) or Amber Rivamonte (Company Secretary) Phone: 03 5331 4644 E‐mail: [email protected] Web: www.whiterockminerals.com.au
Media enquiries to: Simon Jemison Collins Street Media 03 9224 5319 E‐mail: [email protected]
SUMMARY COMMENTS Following the listing of White Rock on the ASX on 8 October, drilling commenced at Mt Carrington in early November, focussed on 2 advanced prospects. Encouraging intersections were achieved at White Rock North, with results to be assessed for follow up in the first half of 2011. Visible copper was observed in drilling at Gladstone. At the Guyra project, an IP survey has defined a number of chargeability and resistivity anomalies which will be drill tested in February 2011.
OUTLOOK Exploration will recommence in February 2011 with a number of drilling programs at Mt Carrington and Guyra targeting defined gold, silver and copper targets.
For
per
sona
l use
onl
y
PROJECTS
MT CARRINGTON
Exploration was focussed on drilling the White Rock North (silver‐gold) and the Gladstone (copper‐gold) prospects, along with continued regional target generative activities.
Regional exploration included specialist geological mapping to establish targets for future surface geochemical surveys and drilling. A number of geochemical stream sediment anomalies defined in 2009 were also followed up.
Figure 1: Location of Mt Carrington project.
For
per
sona
l use
onl
y
White Rock North At White Rock North (4km southwest of the main Mt Carrington Mining Leases) drilling was designed to follow up strong silver mineralisation previously reported by Rex Minerals Ltd (ASX code RXM, see release of 8 October 2009). Four holes for 1,062m were completed with encouraging assay results returned, as presented in Table 1. Drilling has extended the mineralisation to the south‐west and north‐east of the previous Rex drilling and has demonstrated that the silver mineralisation is related to epithermal quartz veining and brecciation within and on the margin of intrusive rhyolite bodies. The mineralisation is broadly distributed throughout the rhyolite, with higher grade zones (>60 g/t Ag) strongly developed on the margins of the bodies. Importantly, the program also confirms that mineralisation commences at shallow depths and is likely to be well preserved, representing significant tonnage potential. The mineralisation remains open to the north‐east and down dip, and much of the upper rhyolite contact has not been tested. Full details of this program are contained in WRM’s ASX release of 12 January 2011. Recent surface mapping has identified a number of additional intrusive rhyolite bodies with numerous historical silver – gold prospecting pits at White Rock West which are untested by modern drilling (Figure 2). The position of these bodies is on the margin of a strong chargeability anomaly defined by an Induced Polarisation survey completed by Rex in 2009 (RXM release of 27 August 2009) in a similar setting to White Rock North. The chargeability anomaly is interpreted to be the result of high concentrations of sulphide minerals associated with the silver and gold mineralisation observed to date, and defined within a regional structural zone. Rock chip sampling undertaken during the mapping program at White Rock West has returned anomalous silver, gold and pathfinder assays which will be compiled and interpreted with the mapping and geophysical data to define targets for drilling during the June quarter.
For
per
sona
l use
onl
y
Figure 2: Location of drillholes at White Rock North in relation to the IP chargeability anomalies.
DRILLHOLE ID From (m) To (m)
Interval (m) Ag (g/t) Au (g/t)
WRDD008 36 40 4 34.8 ‐
69 218.6 (eoh) 149.6 30.7 ‐
including 127 148 21 60.8 ‐
WRDD009 58 331 273 30.1 0.12
including 98 149 51 60.3 ‐
with 99 106 7 101.4 ‐
and 122 128 6 204.2 ‐
including 281 291 10 65.6 0.76
WRDD010 No significant results
WRDD011 50 53.25 3.25 42.6 ‐
including 52.75 53.25 0.5 156.0 ‐
100 102 2 48.0 ‐
178 184 6 26.1 ‐
Table 1: Summarised results from White Rock North drillholes WRDD008 to WRDD011. (Intercept cut off grade of 10 g/t Ag; maximum internal dilution of less than 3m at less than 10 g/t Ag)
For
per
sona
l use
onl
y
Gladstone At the Gladstone prospect (600 metres SW of the Strauss open pit on the main Mining Leases, Figure 3) a 5‐hole drilling program for 614 metres was completed to validate and extend the supergene (secondary) and shallow primary copper – gold mineralisation broadly defined by previous drilling, as well as to determine geological controls on the mineralisation. The program encountered visible supergene and/or primary copper mineralisation in all holes. Drill core is being assayed and results will be reported in early February.
Regional Exploration
Due to the extensive rainfall in the Mt Carrington region in the three months to January 2011, planned geochemical sampling programs north of the Strauss and North Kylo gold Resources have been delayed and will be undertaken in the March quarter.
These programs aim to define interpreted northeast extensions of the Inferred Mineral Resources (190,000 ounces gold) delineated beneath the Strauss and North Kylo pits. The surveys will also cover an area 1.5km north of these pits where previous drilling has intersected gold and zinc mineralisation. The results will be used to plan drilling of the interpreted areas of potential Resource extension in early 2011.
Rock chip sampling was undertaken at the Henley’s Hope prospect located 15km SE of the Mt Carrington leases), which returned strongly anomalous assay results to 9g/t gold and 485g/t silver. Follow up mapping and geochemical soil sampling program was delayed due to wet weather, and the program will be undertaken in the March quarter.
Figure 3: Mt Carrington mining leases with location of main gold‐silver open pits, Gladstone copper zone, and Cheviot Hills fault zone.
For
per
sona
l use
onl
y
GUYRA The Guyra project covers a concealed porphyry‐style copper‐gold mineralised system which has been partially explored by previous companies. The porphyry is exposed in a small window through barren cover basalt rocks but has had little exploration under the basalt away from this window. Interpretation of previous exploration data indicates potential to discover copper‐gold mineralisation beneath the basalt in areas adjacent to the exposed porphyry window. A broad spaced induced polarisation geophysical program was completed in December to map the altered porphyry system below the basalt cover and provide drill targets for testing in February 2011. The survey comprised a total of 52 line km on 12 lines at 400m spacing (refer to Figure 4). The survey defined both chargeability and resistivity responses matching known geology where the altered porphyry system is exposed, and also appears to have mapped the basement alteration beneath the basalt cover with no adverse effects from the basalt. The survey identified a number of encouraging buried chargeability zones along strike and proximal to known alteration, with two main altered zones defined by chargeability highs which may represent separate intrusive/alteration centres or fault offsets of the same system (refer to Figure 5). These chargeability highs are robust at depths of 250 – 400 metres below surface, and previous drilling of the outcropping altered porphyry system has been no deeper than 140 metres below surface in this area. Resistivity data shows two strong linear anomalies on the east and west margins of the broad chargeability response which may be related to the edges of the alteration system or more specific to structures bounding the system. Further interpretation of the data is ongoing, and targets for drill testing will be finalised in late January, for drilling in February.
For
per
sona
l use
onl
y
Figure 4: Guyra project location with outline of completed IP survey on the Willow Glen copper‐gold porphyry.
For
per
sona
l use
onl
y
Figure 5: Willow Glen copper‐gold porphyry horizontal depth slice of chargeability at ~250m below surface. Red –yellow represents areas of relative high chargeability, blue represents areas of low chargeability.
ACTIVITIES PLANNED FOR MARCH 2011 QUARTER
Mt Carrington: White Rock will accelerate the exploration activities in the March quarter. Programs will
include –
Commencement of diamond drilling of a number of targets on the Cheviot Hills Fault Zone (Figure
3) which will continue into the June quarter. The aims of this drilling program are to ‐
Identify shallow extensions to the current Lady Hampden silver‐gold Resource (2M oz silver
and 28K oz gold);
Test a number of defined geochemical (gold ‐ silver) and geophysical (IP chargeability)
anomalies;
Follow up previous drilling (Rex Minerals) which returned highly anomalous shallow results
(drillhole LHDD002B: 9m @ 290 g/t Ag and 1.0 g/t Au from 96m downhole).
3D modelling of the Gladstone and Carrington supergene and primary copper targets to define
drilling targets for the June quarter;
Completion and interpretation of ‘near mine’ geochemical sampling and mapping programs to
prioritise targets for drilling on the central Mining Leases and at White Rock West in the June
quarter;
Continued regional mapping and geochemical surveys to define new targets for drilling in the
second half of 2011.
Guyra: White Rock will undertake a 3 to 5 hole diamond drilling program to test the concealed IP chargeability and resistivity anomalies defined on the Guyra copper‐gold porphyry. This program will commence in early February.
For
per
sona
l use
onl
y
CORPORATE White Rock was accepted into the official list of the ASX to commence trading on 8 October 2010, following the demerger from Rex Minerals Ltd in June 2010.
As outlined in the IPO Prospectus, Banlona Pty Ltd (“Banlona”), a subsidiary of Global Geoscience Ltd (ASX:GSC) agreed to sell to White Rock Exploration Licence 7255 and Exploration Licence 7395 (collectively the Guyra Copper‐Gold Project), in consideration for the issue of 2 million White Rock fully paid ordinary shares (“Shares”) to Banlona Pty Ltd. The shares were issued to Banlona on 15 October 2010 and will be escrowed for 12 months.
As at 28 January 2011 there are 56.8 million shares on issue including 3.9 million shares under ASX escrow. In addition there are 6.1 million unlisted options.
TENEMENT STATUS
A new Exploration Licence (EL7673) covering an area of approximately 180km2 to the immediate west of the Exploration Licences at Mt Carrington was granted this quarter. The area was highlighted as prospective for gold, silver and copper mineralisation during the review of previous exploration and mineral occurrence data. Tenement status is summarised in Table 2.
Project Area
Licence No Target Type
Comments
Mt Carrington
EL6273
Gold – Silver – Copper
100% White Rock interest held by White Rock (MTC) Pty Ltd.
EL6452 100% White Rock interest held by White Rock (MTC) Pty Ltd.
EL6453 100% White Rock interest held by White Rock (MTC) Pty Ltd.
EL7673 100% White Rock interest held by White Rock (MTC) Pty Ltd.
100% White Rock interest. The NSW Department of Industry and Investment has renewed all Leases in the name of White Rock (MTC) Pty Ltd for a period of ten (10) years from 8 December 2010.
Guyra
EL7255 Copper‐Gold
100% White Rock interest held by White Rock (New England) Pty Ltd.
EL7395 Copper‐Gold
100% White Rock interest held by White Rock (New England) Pty Ltd.
Table 2: Summarised tenement status for White Rock projects.
For
per
sona
l use
onl
y
About White Rock Minerals White Rock is an Australian minerals exploration company with projects located in the New England Fold Belt, northern NSW. The New England Fold belt is host to significant gold, silver and copper mines including current mines at Cracow and Mt Rawdon and historic mines at Gympie and Mt Morgan. White Rock listed on the ASX in October 2010 with the objective of undertaking structured and systematic exploration programs on its 100% owned Mt Carrington and Guyra projects, with a vision of discovering and developing new gold, silver and copper resources. At Mt Carrington, White Rock has existing shallow Mineral Resources totalling 190,000ozs of gold and 10.5Mozs of silver*. The exploration program at Mt Carrington is designed to extend the shallow gold and silver Resources along with searching for new large‐scale deposits of gold, silver and copper within this under‐explored mineral belt. The Company is supported by a strong management team with extensive corporate, operating and exploration experience.
Competent Persons Report
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Rohan Worland who is a Member of the Australian Institute of Geoscientists and is a full time employee of White Rock Minerals Ltd. Mr Worland has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Worland consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
*The gold and silver Resource figures have been taken from the resource estimate report dated 1 October 2008 prepared by Mining One Pty Ltd on behalf of Rex Minerals Ltd and authored by Dr Chris Gee who is a professional geologist with more than 10 years experience in resource estimation. Dr Gee is a Competent Person as defined by the JORC Code. A detailed description of the resource estimation methodology, validation drilling program results and representative geological cross sections is included in the full resource report completed by Rex and Mining One Pty Ltd which can be found on White Rock’s website, www.whiterockminerals.com.au.
+ See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010
1.13 Total operating and investing cash flows
(brought forward) (1,068) (1,834)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 123 5,008 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) (545) (764)
Net financing cash flows
(423) 4,244
Net increase (decrease) in cash held
(1,491) 2,410
1.20 Cash at beginning of quarter/year to date 10,616 6,715 1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 9,125 9,125
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
Current quarter $A'000
1.23
Aggregate amount of payments to the parties included in item 1.2
127
1.24
Aggregate amount of loans to the parties included in item 1.10
1.25
Explanation necessary for an understanding of the transactions
Non‐cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
Purchase of EL7255 and EL7395 tenements from Banlona in consideration of 2 million shares at $0.30. Shares escrowed for 12 months
2.2 Details of outlays made by other entities to establish or increase their share in projects in
which the reporting entity has an interest
Financing facilities available Add notes as necessary for an understanding of the position.
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3
Amount available $A’000
Amount used $A’000
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation
1,125
4.2 Development
4.3 Production
4.4 Administration
200
Total
1,325
Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Current quarter $A’000
Previous quarter $A’000
5.1 Cash on hand and at bank 9,125 10,616
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22)
9,125 10,616
Changes in interests in mining tenements Tenement
reference Nature of interest (note (2))
Interest at beginning of quarter
Interest at end of quarter
6.1 Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased
+ See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010
Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per security (see note 3) (cents)
Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description)
7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐backs, redemptions
7.3 +Ordinary securities
56,817,199 52,876,728
7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐backs
18,666,666 20,000
$0.30 $0.38
$0.30 $0.38
7.5 +Convertible debt securities (description)
7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
Notes 1 The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International
Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.