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Sandfire ups 2019 spend at Red Mountain

 

Last updated 7/26/2019 at 5:22am

Red Mountain volcanogenic massive sulfide VMS drill target

White Rock Minerals Ltd.

This 2018 hole targeted Dry Creek, a zinc-rich volcanogenic massive sulfide deposit on White Rock Minerals' Red Mountain project. White Rock and Sandfire Resources are focusing 2019 exploration on identifying similar targets across this district-scale land package in Interior Alaska.

White Rock Minerals Ltd. July 16 announced that its joint venture partner Sandfire Resources NL has committed another US$1.5 million into the 2019 exploration at Red Mountain, extending activities into September at this zinc-rich volcanogenic massive sulfide (VMS) project southeast of Fairbanks, Alaska.

Sandfire, a mid-tier Australia-based mining company, can earn up to a 70 percent joint venture interest in Red Mountain by investing US$21.6 million into and completing a pre-feasibility study for developing a mine at the volcanogenic massive sulfide project over the next six years.

The company originally allotted US$4.3 million for the 2019 program at Red Mountain. The additional funds will increase this spending to US$5.8 million.

"The additional US$1.5 million committed by Sandfire, over and above the AU$6 million already committed for the 2019 field season, is a strong endorsement of the quality and potential of the strategic land holding we have and the many targets being generated for drill testing," said White Rock Minerals Managing Director Matthew Gill.

Red Mountain already hosts two zinc-lead-copper-silver-gold deposits – Dry Creek and West Tundra Flats (WTF) – with 16.7 million metric tons of Australian Joint Ore Reserves Committee- (JORC) compliant inferred resources averaging 4.1 percent (1.49 billion pounds) zinc; 1.7 percent (630 million lb) lead; 0.2 percent (57.3 million lb) copper; 99 grams per metric ton (53.5 million ounces) silver; and 0.7 g/t (352,000 oz) gold.

Continuing a strategy established last year, White Rock and Sandfire are now investigating the district-scale potential across the 183-square-mile (475 square kilometers) land package.

Toward this goal, early 2019 activities at Red Mountain have included surface reconnaissance mapping; soil and rock chip sampling; ground-based electrical (CSAMT and MT) geophysics; core drilling; and downhole electromagnetic surveys.

CSAMT (controlled-source audio-frequency magnetotellurics) is a geophysical survey that proved to be successful in identifying zinc-rich VMS occurrences, such as the Hunter target discovered at Red Mountain last year.

Red Mountain volcanogenic massive sulfide VMS drill target map Alaska

White Rock Minerals Ltd.

White Rock said the additional funds invested by Sandfire will extend drilling a further five weeks to allow a number of new high priority targets defined from the ongoing field activities that include geological reconnaissance, surface geochemistry and modelling of an airborne electromagnetic geophysical survey carried out earlier this year.

The extended exploration season will also allow for additional geological reconnaissance, surface geochemical sampling and ground electrical geophysics surveys across the 183-square-mile Red Mountain property, which will likely continue to identify new priority targets for drilling in 2019 and subsequent field seasons.

–SHANE LASLEY

 

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