Mt Carrington Gold Silver Project Exploration Update

Transcription

1 ASX and Media Release: 4 May 2012 ASX Cde: WRM Mt Carringtn Gld Silver Prject Explratin Update New Near Mine Silver Discvery at Mzart Prspect Drill results f 97g/t silver, including 248g/t silver Reginal drilling identifies large intrusive related system at Red Rck White Rck Minerals Ltd has received high grade silver gld assays frm initial drilling at a new prspect within clse prximity f its existing 730,000 unces f gld equivalent Resurce base n the Mt Carringtn gld silver prject near Drake in nrthern NSW. Drilling at the Mzart prspect, 250 metres frm Silver King and 800 metres frm the Lady Hampden silvergld depsits, has returned an intersectin f 33 metres at 97g/t Ag frm 154.5m, including g/t Ag frm 159m. Mzart is ne f 10 pririty near mine and reginal explratin targets which will be drilled in 2012, within a prtfli f ver 70 targets assembled ver the past 18 mnths. Fllw up drilling at Mzart will be undertaken this quarter with a further 2 4 hles planned. As part f the reginal explratin prgram drilling has als cmmenced at the high grade and histrically mined Red Rck Au Ag Cu Prspect lcated 15km nrth f the central Mt Carringtn leases. The first diamnd cre hle in a three hle prgram has intersecting a brad alteratin zne cntaining intermittent sulphide mineralisatin extending frm surface t a dwn hle depth f 250 metres. This drillhle is the deepest t be undertaken at Red Rck, with the bradest intersectin f alteratin encuntered t date. Assay results are pending. White Rck Managing Directr Geffrey Lwe said tday: The ptential f the Mt Carringtn prject t yield significant new and shallw depsits is nly just beginning t be unlcked. After successfully building the gld silver Resurce base t 730,000 z AuEq* ver the past 12 mnths, it is very pleasing t discver a ptential new high grade silver depsit at Mzart s clse t the existing Resurces. The drilling at Red Rck is als very exciting, cnfirming an extensive and largely untested alteratin system within the reginal vlcanic caldera setting. Drilling t date at bth Mzart and Red Rck highlights hw well endwed and under explred the Mt Carringtn regin is, and the exciting new phase f explratin that lies ahead. Near mine and reginal explratin drilling will cntinue in tandem with cnceptual scping studies n the shallw Resurce base. These studies are designed t prvide parameters fr prcessing and mining ptins as a prelude t feasibility studies in 2013 and anticipated develpment targeted fr mid Fr further infrmatin, please cntact: Geffrey Lwe (Managing Directr) Amber Rivamnte (Cmpany Secretary) Phne: E mail: inf@whiterckminerals.cm.au Website: Media enquiries t: Simn Jemisn C/. Cllins Street Media Phne: r E mail: simn@cllinsstreetmedia.cm.au

2 Near Mine Explratin Mzart Prspect The Mzart prspect is lcated 250m suth f the 1.2Mz silver Resurce at Silver King and 800m suth f the 8Mz silver Resurce at Lady Hampden in the central mining leases (Figure 1). The definitin f silver Resurces at Silver King and Lady Hampden in 2011 prvided the impetus t re evaluate previus limited percussin drilling (3 hles) lcated 500m suth f Silver King, where strng near surface silver mineralisatin was intersected (e.g. drillhle MCP421: 89g/t Ag & 0.32g/t Au frm 35m). Tw drillhles (MODD ) were cmpleted at Mzart in the current prgram t test the shallw dwn dip ptential fr Au Ag mineralisatin intersected in the histrical hles, alng with testing electrical gephysical anmalies within the Chevit Hills mineralised crridr (Figure 2). Drilling was designed t test the equivalent favurable stratigraphic psitin where mineralisatin is fcused at Lady Hampden and Silver King. Drillhle MODD002 intersected a prmising alteratin zne ver a substantial dwnhle width with visible sulphide mineralisatin, and assay results have cnfirmed that a new high grade silver zne has been discvered. Mineralisatin is similar in style and within the same stratigraphic hst as bth the Lady Hampden and Silver King depsits alng strike t the nrth. In particular the alteratin and sulphide assemblage are identical in nature t sme f the high grade silver pds within the Lady Hampden depsit. MODD002 is lcated ver 250m suth f the Silver King Resurce and 300m nrth east f the histrical drilling at Mzart. There is cnsiderable strike ptential t the zne intersected in this hle, and there is n previus drilling either up r dwn dip. Shallw histric mine wrkings have als been lcated n the western margin f the Chevit Hills mineralised crridr, apprximately 500m west f drillhle MODD002, in the interpreted up dip stratigraphic psitin f this mineralisatin. The successful develpment f a new gelgical mdel at Lady Hampden in 2011 underpinned the definitin f a fur fld increase in the Lady Hampden silver Resurce frm 2.0Mz t 8.3Mz. Similar ptential at the new Mzart discvery presents an exciting pprtunity t further grw the Resurce base and supprt prgress twards develpment. MODD002 als intersected a thin zne f alteratin and gld mineralisatin hsted by an interpreted andesitic intrusin twards the bttm f the hle. This zne returned an intersectin f 0.6g/t Au, and while this is sub ecnmic at this depth, the style f mineralisatin bserved is very similar t the Kyl depsit 1.3g/t Au fr 95,000z Au Indicated and Inferred Resurce). There is ptential t define bth up dip and strike extensins t this zne. Drilling will resume at Mzart in May t test psitins up dip and alng strike f the discvery hle. Results fr drilling at Mzart are presented in Table 1 belw.

3 DRILLHOLE ID Frm (m) T (m) Interval (m) Ag (g/t) Au (g/t) MODD including MODD Table 1: Results frm Mzart drillhles MODD (Intercept cut ff grade f 0.2g/t Au and 10 g/t Ag; maximum internal dilutin f 3m at <0.2g/t Au r <10 g/t Ag) Near Mine Explratin Silver King Prspect (current Inferred Resurce 1.2M z Ag) Results have been received fr a fllw up 3 hle prgram (SKDD ) that was recently cmpleted t test fr dwn dip and strike extensins t mineralisatin previusly reprted in SKDD004 ( g/t Ag frm 146 metres). SKDD004 was drilled t test the dwn dip extensin t the suthern end f the Silver King Inferred silver Resurce (Figure 2). Results fr SKDD007 returned further significant mineralisatin with an intersectin f 63g/t Ag and 0.9g/t Au frm 178m including 146g/t Ag and 2.4g/t Au frm 179m. The mineralisatin intersected in bth SKDD004 and SKDD007 demnstrates clear ptential fr a significant expansin f the Silver King Inferred Resurce t the nrth east and dwn dip f the suthern high grade sectin f the depsit (up dip f this intersectin). Further drilling is planned t test these psitins later in Results fr drilling at Silver King are presented in Table 2 belw. DRILLHOLE ID Frm (m) T (m) Interval (m) Ag (g/t) Au (g/t) SKDD006 N significant assay results SKDD including SKDD Table 2: Results frm Silver King drillhles SKDD (Intercept cut ff grade f 0.2g/t Au and 10 g/t Ag; maximum internal dilutin f 3m at <0.2g/t Au r <10 g/t Ag)

4 Reginal Explratin Prgram Red Rck Prspect Reginal drilling resumed in late April with drilling at the Red Rck prspect. The Red Rck prspect is lcated n a small grup f Mining Leases situated 15km nrth f the central ML s (Figure 1). Histric mining n the ML s explited small shallw xide gld depsits and previus explrers als targeted silver and cpper mineralisatin, with a number f shallw drillhles cmpleted arund the main histrical mine shaft. Review f histrical explratin data at Red Rck indicates a number f untested gechemical and gephysical anmalies and pen mineralised drill intersectins n the Leases. Previus drilling is relatively shallw with sme high grade gld intersectins reprted (e.g. 26g/t Au frm 53m in drillhle RED003), and there is evidence t suggest that the rientatin f previus drillhles was sub parallel t surface gld bearing vein sets. Prspect mapping and sampling at Red Rck in 2011 cnfirmed and further defined the dimensins f an extensive hydrthermal system with cnsiderable gld silver metal ptential. Surface rck chip sampling returned high grade values t 99g/t Au and 2,240g/t Ag. The current interpretatin fr Red Rck is that the best ptential fr gld mineralisatin f significant scale and tenr is at levels belw 100 metres within mre favurable hst rcks beneath the histrical wrkings and previus shallw drilling. An rientatin line f deep penetrating ple diple electrical gephysics cmpleted in Octber 2011 highlighted a rbust and depth extensive anmaly cincident with a structural zne that is interpreted as ne f the ptential primary feeders t the large Red Rck mineralised system (Figure 3). This target will be tested by three drill hles that are currently underway. The first hle in the current prgram (RRDD001) has been cmpleted at Red Rck t test the IP chargeability feature (Figure 3). The drillhle intersected variable alteratin, veining, breccias and sulphide mineralisatin in intermittent znes frm 5m t 256m dwnhle, hsted in interlayered sediments and vlcaniclastics. Frm 122m t 262m a strngly altered vlcanic dacite unit interpreted t be an intrusive (with similar characteristics t the hst rck at the White Rck and White Rck Nrth silver depsits) was intersected, and is interpreted t be the surce f the IP chargeability feature. This is the deepest hle ever drilled at Red Rck and cnfirms that the alteratin system extends t a cnsiderable depth and is largely untested. Assay results frm RRDD001 will be available in several weeks.

5 Further reginal explratin targets have been defined in the Mt Carringtn district by White Rck ver the past 12 mnths, and these have been priritised fr drill testing ver the next six mnths. Surface wrk has prvided significant encuragement with pririty reginal targets including: Kimberley prspect (10km west f the central ML s, surface results t 26.3g/t Au & 759g/t Ag) Girard West prspect (9km west f the central ML s, surface results t 13.0g/t Au & 59g/t Ag), Cemetery prspect (11km west f the central ML s, surface results t 3.8g/t Au & 570g/t Ag), Girard East prspect (6km west f the central ML s, surface results t 4.8g/t Au & 370g/t Ag), Tea Tree prspect (6km suth f the central ML s, surface results t 1.1g/t Au & 180g/t Ag), Area B prspect (8km suth f the central ML s, surface results t 44g/t Ag), Murray prspect (12km NW f the central ML s, surface results t 3.7g/t Au) and Mariners prspect (13km NW f the central ML s, surface results t 0.7g/t Au). Detailed gelgical mapping, rck chip sampling and sil surveys have been cmpleted r are underway n Girard East, Girard West, Mandrake and Kimberley. Additinal detailed mapping and sil sampling prgrams are planned fr the Area B, Tea Tree, Mariners and Cemetery prspects in the June quarter, and a prgram f electrical gephysics at Mandrake, Girard West and Girard East will cmmence in May t help refine targets prir t drill testing. Drilling pririty will be determined by the interpretatin f the results frm these prgrams. Figure 4 illustrates the distributin f high pririty reginal targets and encuraging rck chip results. Fllwing cmpletin f the current drilling prgram at Red Rck, the rig will undertake fllw up drilling f the new silver zne at Mzart, targeting bth up dip and strike extensins t this zne. Drilling will then mve nt pririty near mine targets in the White Rck area fllwed by systematic testing f reginal targets as utlined abve.

6 Figure 1: Mt Carringtn Mining Leases: Lcatin f Silver King and Mzart Prspects

7 Figure 2: Inset lcatin f Mzart prspect, Silver King and Lady Hampden Resurces, and recently cmpleted drill hles and significant results.

8 Figure 3: Red Rck Prspect 2D inversin image f rientatin ple diple chargeability shwing a discrete anmaly extending t depth that is cincident with nrtheast trending structures assciated with histrical wrkings and anmalus gld in surface rcks chips and shallw drilling. Drillhle RRDD001 has been cmpleted, drillhle RRDD002 is in prgress.

9 Figure 4: High pririty reginal targets with surface rck chip results >1g/t Au highlighted.

10 Abut White Rck Minerals White Rck is an Australian minerals explratin cmpany fcussed n the discvery and develpment f shallw gld, silver and cpper depsits in the New England Fld Belt, nrthern NSW. The Cmpany is targeting depsit styles similar t thse at Cracw, Mt Rawdn and Mt Mrgan. White Rck s crnerstne asset is the 100% wned Mt Carringtn prject where shallw Indicated and Inferred Mineral Resurces ttalling 284,000z gld and 23.3Mz silver* have been defined. Explratin drilling at Mt Carringtn is in prgress with the aim f extending the shallw Resurce base, and t test a number f prspective reginal and near mine targets within a tenement area f 600km 2 ver the under explred Drake Vlcanics. Market Capitalisatin: A$0.15/share Issued Capital: 82m Ordinary shares, 6.4m Unlisted ptins Balance Sheet: Cash ~A$3.56M (31 March 2012), n debt Sharehlders Greenstne Prperty Pty Ltd 6.87% Silverstne Investment Hldings Pty Ltd 5.91% Bard and Management 4.30% Grand Suth Develpment Ltd 3.79% Banlna Pty Ltd 2.50% TOP 20 41% Bard and Management Brian Phillips Nn Executive Chairman Geffrey Lwe Managing Directr Steven Olsen Nn Executive Directr Amber Rivamnte Cmpany Secretary Janet Masn Chief Financial Officer Rhan Wrland Explratin Manager Resurces Gld Dminant Depsits Silver Dminant Depsits MT CARRINGTON INDICATED & INFERRED MINERAL RESOURCE SUMMARY Gld grade Silver grade Tnnes Gld unces (g/t) (g/t) Silver unces 5,010, , ,000 12,210, , ,805,000 Ttal Resurces Indicated 4,670, ,000 4,342,000 Inferred 12,550, ,000 18,920,000 Ttal 17,220, ,000 23,262,000 *Cmpetent Persns Reprt The infrmatin in this reprt that relates t Explratin Results r Mineral Resurces is based n infrmatin cmpiled by Mr Rhan Wrland wh is a Member f the Australian Institute f Gescientists and is a full time emplyee f White Rck Minerals Ltd. Mr Wrland has sufficient experience which is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity which he is undertaking t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Wrland cnsents t the inclusin in the reprt f the matters based n his infrmatin in the frm and cntext in which it appears. The gld and silver Resurce figures fr Strauss, Kyl, Lady Hampden, Silver King and White Rck Nrth have been taken frm the resurce estimate prepared by Ravensgate Minerals Industry Cnsultants n behalf f White Rck Minerals Ltd and authred by Mr Dn Maclean. Mr Maclean is a member f the Australian Institute f Gescientists and has sufficient experience relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity which he has undertaken t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Maclean cnsents t the inclusin in this reprt f the matters based n this infrmatin in the frm and cntext in which it appears. The gld and silver Resurce figures fr White Rck and Guy Bell have been taken frm the resurce estimate reprt dated 1 Octber 2008 prepared by Mining One Pty Ltd n behalf f Rex Minerals Ltd and authred by Dr Chris Gee wh is a prfessinal gelgist with mre than 10 years experience in resurce estimatin. Dr Gee is a Cmpetent Persn as defined by the JORC Cde. *AuEq and AgEq are calculated at 52:1 Ag : Au using metal prices f US$1,650 per z and US$32 per z and d nt accunt fr mining r metallurgical recveries.

11 Abut Mt Carringtn, New Suth Wales Mt Carringtn is lcated near the twnship f Drake in nrthern New Suth Wales and is nly a 4 hur drive frm Brisbane. The prject cvers the histric Drake Mineral Field. Gld was first discvered in the regin in 1853 with a number f gld silver discveries made ver the next 25 years at the Drake, Tlm, Pretty Gully, Lunatic and Brk fields. In 1886 gld and silver were identified at Drake (then called Fairfield), Munt Carringtn, White Rck and Red Rck. Prspecting and small scale mining f high grade gld silver and cpper ldes cntinued thrugh t the 1920 s. The Drake field saw a resurgence f explratin frm the 1960 s nwards. Carpentaria Explratin explred the White Rck and Lady Hampden areas fr a number f years, and in 1970 Munt Carringtn Mines Ltd (MCM) was flated. MCM planned t develp a resurce base n a number f the Mt Carringtn gld silver depsits, and frm 1974 t 1976 the cmpany mined 9,500 tnnes at a grade f 220g/t Ag and 5 g/t Au frm the Lady Hampden pen pit. The Mt Carringtn field was explred further in the mid 1980 s and MCM cnstructed and cmmissined a new pen pit mining peratin, fcussed n extracting xide gld and silver re frm the Strauss, Kyl, Guy Bell and Lady Hampden depsits. The peratin ran frm 1988 t mid 1990, prducing apprximately 22,000 z f gld and 435,000 z f silver. The mine clsed due t depletin f xide re and secndary cpper znes causing CIP prcessing issues. At the time f clsure the gld and silver prices were US$370 and US$5 respectively. Fllwing the mine clsure a jint venture was frmed between MCM and CRA Explratin. CRAE was fcused n explring fr a large plymetallic mineralised system in a Pacific Rim type envirnment. Their wrk identified a 15km diameter, circular feature f subdued magnetic respnse. The feature hsts all f the knwn gld, silver and cpper mineralisatin in the Drake Field. Recent detailed mapping by White Rck Minerals Ltd has established the feature as a large vlcanic caldera structure. In April 2008 Rex Minerals Ltd acquired the prject and subsequently re estimated a shallw Inferred Resurce base f 190,000 z Au and 10.5M z Ag. White Rck Minerals was demerged frm Rex Minerals in June 2010 with the purpse f undertaking Resurce definitin drilling and feasibility studies t increase the Resurce base and assess the viability f near term re develpment f the prject int an pen pit gld silver mining peratin. The initial twelve mnths f Resurce evaluatin has increased the Resurce base n the prject t 284,000 z Au and 23.3M z Ag. In cnjunctin, a cmprehensive reginal explratin prgram testing epithermal style precius metal targets defined within the 400 square km reginal vlcanic caldera feature is nging, and this has defined several prspects with high grade Au and Ag anmalism at surface. N systematic reginal explratin has been undertaken n the mineral field fr ver 16 years.