Mineral Resource

A maiden Mineral Resource estimate at Red Mountain (ASX Announcement 26 April 2017) has been prepared and reported in accordance with the JORC Code (2012). Highlights of the Mineral Resource include:

  • High-grade Inferred Mineral Resource of 9.1 million tonnes @ 12.9% ZnEq¹ for 1.2Mt of contained zinc equivalent at a 3% Zn cut-off.

  • Total Inferred Mineral Resource of 16.7 million tonnes @ 8.9% ZnEq¹ for 1.5Mt of contained zinc equivalent at a 1% Zn cut-off for Dry Creek, 3% Zn cut-off for West Tundra Flats & 0.5% Cu cut-off for Dry Creek Cu Zone.

  • Impressive base metal and precious metal content with 678,000t zinc, 286,000t lead, 53.5 million ounces silver and 352,000oz gold.

  • This Mineral Resource places the Red Mountain Project in the top quartile of undeveloped high-grade VMS (zinc, silver, lead, gold, copper) deposits globally².

  • Mineralisation commences at surface and is open along strike and down-dip.

  • Good preliminary metallurgical recoveries of >90% zinc, >75% lead, >80% gold, >70% silver and >70% copper.

Above: Red Mountain April 2017 Inferred Mineral Resource Estimate prepared and reported in accordance with the JORC Code (2012)

Above: Red Mountain April 2017 Inferred Mineral Resource Estimate¹ at a 3% Zn cut-off (contained within Table 1, not additional) prepared and reported in accordance with the JORC Code (2012)

¹ Zinc equivalent grades are estimated using long-term broker consensus estimates compiled by RFC Ambrian as at 20 March 2017, adjusted for recoveries derived from historical metallurgical testing work and calculated with the formula:
ZnEq =100 x [(Zn% x 2,206.7 x 0.9) + (Pb% x 1,922 x 0.75) + (Cu% x 6274 x 0.70) + (Ag g/t x (19.68/31.1035) x 0.70) + (Au g/t x (1,227/31.1035) x 0.80)] / (2,206.7 x 0.9).

White Rock is of the opinion that all elements included in the metal equivalent calculation have reasonable potential to be recovered and sold.

² Source – SNL, RFC Ambrian and company data.

Above: Cross-section 480,285E looking towards the east through the Dry Creek deposit showing the geometry of the Fosters mineralised massive sulphide lens and drill intercepts.

Above: Cross-section 484,200E looking towards the east through the West Tundra Flats deposit showing the mineralised massive sulphide lens and drill intercepts.