quarterly activities report for the period ended 31 … release: 30 april 2012 quarterly activities...
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ASX Release: 30 April 2012
Quarterly Activities Report ‐ for the period ended 31 March 2012 ASX Code: WRM Shares on Issue: 82 million Options on Issue: 6.4 million Cash on hand at 31 March 2012: $3.56M Market Cap at 26 April 2012: $12M at $0.15 per share Quarter share price range: 13c ‐ 20c Board of Directors & Management: Brian Phillips Non‐Executive Chairman Geoffrey Lowe Managing Director Steven Olsen Non‐Executive Director Amber Rivamonte Company Secretary
For further information, please contact: Geoffrey Lowe or Amber Rivamonte 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]
HIGHLIGHTS MT CARRINGTON GOLD – SILVER PROJECT Updated Resource Estimation Significant increase and upgrade to the shallow gold and silver Resource base:
Gold – 50% increase on 2008 Resource: Silver – 120% increase on 2008 Resource:
54% Indicated / 46% Inferred 19% Indicated / 81% Inferred
284,000oz Au @ 1.4g/t Au (0.5g/t Au cut off) 23.3Moz Ag @ 58g/t Ag (25g/t Ag cut off)
204,000oz Au @ 2.0g/t Au (1.0g/t Au cut off) 15.7Moz Ag @ 85g/t Ag (50g/t Au cut off)
Promising preliminary metallurgical test work results received
Metallurgical process and pit modelling now underway
Resource expansion drilling recommenced in January; drilling results include: Kylo gold deposit KYDD011:4.4m @ 9.4g/t Au and 25g/t Ag from 136.3m Including 0.4m @ 99.2g/t Au and 231g/t Ag from 140.3m KYDD012: 64.8m @ 0.8g/t Au from 123.3m Including 2.8m @ 2.9g/t Au from 123.3m Including 2.2m @ 2g/t Au from 149.8m Including 1m @ 11.5g/t Au from 183m KYDD015:4m @ 5.0g/t Au from 33m Including 0.2m @ 89.9g/t Au and 25g/t Ag from 34.4m Lady Hampden silver‐gold deposit LHDD028: 6m @ 44 g/t Ag from 98m Including 1m @ 155 g/t Ag from 98m including 3m @ 87 g/t Ag from 111m *All results are reported as downhole lengths
Exploration Significant regional anomalies continue to be defined with surface rock chip
sample results to 13.0g/t Au and 570g/t Ag.
Substantial silver mineralisation observed in near mine drilling on the Silver King and Mozart targets, immediately south of Lady Hampden – results pending.
Regional drilling to commence in April on several high priority targets.
3,087 metres drilled and 856 surface samples collected in the March quarter.
Corporate 2011 Rights Issue shortfall placement completed with approximately 2.1m shares
placed raising $0.3m.
OUTLOOK AND ACTIVITIES PLANNED FOR JUNE QUARTER
Following a substantial drilling program at the 100% owned Mt Carrington gold‐silver project through 2011, White Rock Minerals Ltd (‘White Rock’ or ‘the Company’) completed its first re‐estimation in February 2012 of the gold‐silver Resource since the IPO.
The results exceeded the Company’s expectations with the Indicated and Inferred Resource base of 284,000 oz Au and 23.3M oz Ag placing Mt Carrington in the upper tier of emerging precious metals projects In New South Wales.
With the advantages of granted mining leases, key site infrastructure and access to regional services, the project presents an excellent development opportunity for White Rock on an under‐explored mineral field with significant potential to grow through new discoveries.
Limited shallow Resource extension drilling on the Kylo, Strauss and Lady Hampden deposits was completed in the March quarter, and first pass metallurgical test work on drill core from several deposits has returned encouraging results.
The Company will now turn its focus to conceptual studies to evaluate and develop potential metallurgical process pathways and open pit designs, as a prelude to advanced scoping studies commencing late 2012.
Drilling in the June quarter will continue with a diamond rig drill testing priority prospects within a large portfolio of regional and near‐mine exploration targets. Several of these prospects have returned significant results from surface samples collected on promising areas of alteration and historical workings untested by drilling. Peak values of 26g/t Au and 759g/t Ag have been recorded.
Further drilling to scope the extent and tenor of new silver mineralisation encountered in drilling at the Silver King and Mozart silver prospects will also be undertaken.
Regional and prospect‐scale geochemical sampling, mapping and electrical geophysical programs will also continue to develop targets for drill testing in the second half of 2012.
MARCH QUARTER ACTIVITIES
Summary
The updated and upgraded Resource estimation at Mt Carrington was completed in February and is detailed below.
Resource extension and exploration drilling continued through the quarter, focused on testing for extensions to the Lady Hampden silver‐gold Resource and the Strauss and Kylo gold Resources, along with new targets at the Silver King and Mozart silver‐gold prospects.
The results returned from the Resource extension drilling continue to support the expansion potential at the Kylo and Lady Hampden deposits. Further extension drilling will be delayed until later in 2012 to allow for the planned drill testing of the regional exploration targets, and allow for evaluation of conceptual pit shell models which will then determine the optimum location and scope of further Resource expansion drilling.
The results from the preliminary metallurgical test work program are being evaluated. The results are promising and will provide direction for a more extensive test work program from quarter two this year.
Ground work to prioritise regional and near‐mine targets for drill testing was ongoing in the quarter, and included geochemical rock and soil sampling, geological mapping and evaluation of historical data. Drilling will commence in late April at the Red Rock prospect, targeting anomalous IP resistivity and chargeability responses beneath the extensive historical gold – silver – copper workings on the Red Rock leases.
Figure 1: Location of Mt Carrington project
Gold and Silver Resource Update – February 2012 White Rock has increased the silver resources by 120% and gold resources by 50% at the Mt Carrington
project as a result of the Resource expansion drilling program in 2011. The total in‐situ endowment of the
seven near‐surface resources on the project is now approximately 284,000 oz Au and 23.3m oz Ag. This
Resource base equates to approximately 730,000 oz Au equivalent*. White Rock considers that the scale
and shallow nature of the Resource base provides the necessary foundation to commence conceptual
mining studies with the aim of moving to full scoping and pre‐feasibility studies from late 2012.
Key features of the updated Resource estimate are:
SILVER
The total silver Resource has increased from 10.5Moz to 23.3Moz
Newly classified Indicated Resource of 4.3Moz Ag
Expanded Inferred Resource of 19Moz Ag
Mineralisation exists from surface to 250m depth and further Resource growth potential is
evident along strike and down dip at the Lady Hampden and White Rock North deposits
Newly identified mineralisation at the Silver King deposit demonstrates expansion potential
GOLD
The total gold Resource has increased from 190,000oz to 284,000oz
Newly classified Indicated Resource of 153,000oz Au.
Expanded Inferred Resource of 131,000oz Au
Mineralisation exists from surface to 220m depth and further Resource growth potential is
evident along strike and down dip at the Strauss and Kylo deposits
*Gold Equivalent is calculated at 52:1 Ag : Au using metal prices of Au @ US$1,650 per oz and Ag @ US$32 per oz and
does not account for mining or metallurgical recoveries
MT CARRINGTON MINERAL RESOURCES
Silver Dominant Resources
Resource Category Deposit Tonnes Gold grade
(g/t) Gold ounces
Silver grade (g/t)
Silver ounces
Indicated Lady Hampden 1,840,000 0.6 37,000 69 4,056,000
Inferred
Lady Hampden 2,470,000 0.3 27,000 51 4,023,000
White Rock 4,080,000 ‐ ‐ 62 8,194,000
White Rock North 3,180,000 ‐ ‐ 52 5,314,000
Silver King 640,000 ‐ ‐ 59 1,218,000
Sub‐Total 10,370,000 0.1 27,000 56 18,749,000
Total
Lady Hampden 4,310,000 0.5 64,000 58 8,079,000
White Rock 4,080,000 ‐ ‐ 62 8,194,000
White Rock North 3,180,000 ‐ ‐ 52 5,314,000
Silver King 640,000 ‐ ‐ 59 1,218,000
Total 12,210,000 0.2 64,000 58 22,805,000
Gold Dominant Resources
Resource Category Deposit Tonnes Gold grade
(g/t) Gold ounces
Silver grade (g/t)
Silver ounces
Indicated
Strauss 1,240,000 1.4 57,000 3.8 153,000
Kylo 1,590,000 1.2 59,000 2.6 133,000
Sub‐Total 2,830,000 1.3 116,000 3.1 286,000
Inferred
Strauss 1,260,000 1.4 56,000 2.6 104,000
Kylo 760,000 1.5 35,000 1.8 43,000
Guy Bell 160,000 2.5 13,000 4.9 24,000
Sub‐Total 2,180,000 1.5 104,000 2.4 171,000
Total
Strauss 2,500,000 1.4 113,000 3.2 257,000
Kylo 2,350,000 1.3 95,000 2.3 176,000
Guy Bell 160,000 2.5 13,000 4.9 24,000
Total 5,010,000 1.4 221,000 2.8 457,000
Total Resources
Category Tonnes Gold ounces
Silver ounces
Indicated 4,670,000 153,000 4,342,000
Inferred 12,550,000 131,000 18,920,000
Total 17,220,000 284,000 23,262,000
All Au‐dominant resources have been estimated using a lower cut‐off of 0.5g/t and all Ag‐dominant resources have been estimated using a lower cut‐off of 25g/t. The estimates have been rounded in accordance with the guidance of the JORC (2004) code.
Figure 2: Mt Carrington Mining Leases and gold – silver Resource locations
Figure 3: White Rock Leases and silver Resource locations
Metallurgical Sighter Test Work The results for sighter metallurgical test work were received during the quarter. Test work was undertaken on selected drill core samples from the Strauss (Au), Lady Hampden (Ag‐Au) and White Rock (Ag) deposits, representing typical Resource material, to investigate recoveries of gold and silver using both floatation and leaching processes. The results of this work have provided preliminary support for a potential processing route which entails producing a cleaned high grade Au‐Ag floatation concentrate combined with leaching of the floatation tailings. Modelled recoveries for both gold and silver using this process path were in excess of 80% for each of the deposits. This outcome provides direction for more detailed test work from quarter two, and to this end White Rock has engaged a consulting group to undertake conceptual desktop studies which includes Whittle pit shell modelling and evaluation of metallurgical treatment process options, leading to the next round of metallurgical test work requirements. Initial outcomes of these conceptual studies will be reported in the second quarter.
Extension Drilling – Strauss and Kylo Gold Resources The Strauss and Kylo gold deposits are located on the central Mining Leases at Mt Carrington (Figure 2). The current Indicated and Inferred Resources are situated immediately beneath and adjacent to the shallow open pits which were mined in the late 1980’s. The Resources extend from surface to a nominal depth of 220 metres.
During the March quarter eleven drill holes were completed at Strauss and Kylo (SRDD023 to SRDD027, KYDD011 to KYDD016; Figure 4) to test for shallow strike and dip extensions to the gold Resources as well as newly interpreted parallel lode positions. At the Strauss deposit, results from this program were of relatively low tenor, indicating the southern extension to the Resource is closed off at shallow (<100m) depths. Gold mineralisation is still open at depth below 100m, and further geological interpretation will be completed to determine targets for future drilling at depth.
At the adjacent Kylo deposit, drilling was undertaken to test for extensions to the gold mineralisation at both the northern and southern ends of the current Resource as well as testing a parallel lode position in the footwall to the southern end of the current Resource. Assay results from this program indicate that mineralisation extends down dip albeit as narrower zones of high grade quartz vein stockwork with evidence that bonanza gold grades are present (0.4m @ 99.2g/t Au from 140.3m in KYDD011). The parallel lode position in the footwall of the southern end of the Resource that was intersected in drillhole KYDD009 in late 2011 was found to be limited to the west but scope for good continuity exists to the east and down dip with KYDD016 intersecting 6m @ 2.0g/t Au from 93m and historic holes in this area showing evidence of mineralisation in the footwall position. Table 1 contains all results for the Strauss and Kylo drill program completed during the quarter, with drillhole locations presented on Figure 4.
Extension Drilling ‐ Lady Hampden Silver – Gold Resource The Lady Hampden silver‐gold deposit is located close to the eastern margin of the central Mining Leases at Mt Carrington (Figure 2). The current Indicated and Inferred Mineral Resource is located immediately beneath and adjacent to the old open pit and is open down dip to the east. The Resource extends from surface to a nominal depth of 250 metres.
Three drill holes (LHDD027 – 029) were completed this quarter, designed to continue verifying the extent of the mineralised footprint to the east and south‐west of the Resource envelope (Figure 5). Drillholes LHDD028 and LHDD029 returned narrow high grade silver values, confirming the mineralised envelope remains open at depth to the east and south (Table 2). Further drilling to test for extensions beyond the current footprint will be considered later in 2012, pending the results of conceptual pit modelling on the Resource base.
Extension Drilling ‐ Silver King Silver Resource The Silver King Resource is located on the Cheviot Hills fault zone approximately 700 metres to the south‐west of Lady Hampden (Figure 2). A Resource of 1.2M oz silver was defined at Silver King in late 2011, based on interpretation of historical drilling. Interpretation of the historical drilling at Silver King recognised strong similarities in mineralisation style and host rock to that observed at Lady Hampden. The interpretation was confirmed with drilling in late 2011, with drillhole SKDD004 returning an intersection of 6.7m @ 64g/t Ag & 0.2g/t Au from 146m, located approximately 100m to the east of the silver Resource at Silver King.
A drilling program comprising 3 drillholes (SKDD006 – 008, Figure 5) was completed in this quarter to test the extent of the mineralisation in SKDD004. Logging of SKDD007 indicates that the alteration system extends from the near‐surface Resource to the north‐east, with results for all drillholes pending.
Figure 4: Strauss & Kylo: Location of recent drillholes and current gold Resource outlines.
Figure 5: Lady Hampden ‐ Silver King ‐ Mozart: Location of recent drillholes and silver‐gold Resource outlines.
DRILLHOLE ID
From (m)
To (m) Interval (m)
Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%)
SRDD023 90 91 1 0.6 1 ‐ ‐ 0.3
105.5 105.8 0.3 3.6 5 0.9 ‐ 2.1
SRDD024 6.8 14 7.2 0.3 2 ‐ 0.1 ‐
including 13 14 1 1.4 4 ‐ 0.1 ‐
19 28 9 0.6 4 ‐ 0.1 ‐
including 27 28 1 3.1 2 0.1 0.1 ‐
SRDD025 No significant results
SRDD026 0 15 15 0.6 4 ‐ 0.2 ‐
38 40 2 1.9 3 0.2 ‐ ‐
48 50 2 1.6 2 0.3 0.1 ‐
78.4 83 4.6 1.3 2 0.2 0.1 1.1
SRDD027 No significant results
KYDD010 No significant results
KYDD011 34 66.5 32.5 0.7 1 0.1 ‐ 0.2
including 36 36.5 0.5 5.8 6 0.5 0.3 7.3
136.3 140.7 4.4 9.4 25 0.4 0.1 1.1
including 140.3 140.7 0.4 99.2 231 3.2 0.7 6.7
144.5 149.5 5 0.5 2 0.1 ‐ 0.3
152.8 153.05 0.25 3.0 8 0.5 ‐ 1.1
KYDD012 123.25 188 64.75 0.8 4 0.1 ‐ 0.3
including 123.25 126 2.75 2.9 8 0.1 0.1 0.2
including 131 132 1 2.4 1 ‐ ‐ 0.1
including 137 138 1 2.9 3 0.1 ‐ 0.1
including 143 144 1 2.0 4 ‐ ‐ 0.2
including 149.8 152 2.2 2 18 1.5 ‐ 0.3
including 172 173 1 3.1 15 0.2 0.1 0.3
including 183 184 1 11.5 47 1.8 0.2 0.9
Table 1: Strauss & Kylo: Results from drillholes SRDD023 ‐ 027 and KYDD010 ‐ 016. (Intercept cut‐off grade of 0.2g/t Au, 10 g/t Ag and 0.2% Cu; maximum internal dilution of 3m at <0.2g/t Au or <10 g/t Ag or <0.2% Cu)
DRILLHOLE
ID From (m)
To (m) Interval (m)
Ag (g/t) Au (g/t)
LHDD027 97 103 6 22 0.3
124 125 1 13 1.7
LHDD028 98 104 6 44 0.3
98 99 1 155 0.1
111 114 3 86.5 0.1
112 113 1 239 0.1
136 142 6 20 0.5
140 142 2 52.3 0.9
LHDD029 170 182 12 43 ‐
including 173 174 1 105 ‐
196 198 2 36 0.1
206 208 2 22 ‐
Table 2: Lady Hampden: Results from drill holes LHDD027 ‐ 029. (Intercept cut‐off grade of 0.2g/t Au and 10 g/t Ag; maximum internal dilution of 3m at <0.2g/t Au or <10 g/t Ag)
Near‐Mine Exploration Program
Interpretation of geological mapping, airborne and surface geophysics, and recent extensive surface geochemical sampling has identified in excess of 40 discrete near‐mine targets within two kilometres of the existing gold and silver Mineral Resources on both the central mining leases and in the White Rock area. Within this portfolio 10 targets have been classified as high priority, and drill testing of these targets commenced in the March quarter with two holes completed at the Mozart prospect, located 0.6km SW of the Silver King Inferred Resource, and adjacent to the Cheviot Hills fault zone. The definition of silver Resources at Lady Hampden and Silver King in 2011 provided the impetus to re‐evaluate the Mozart silver prospect, where previous limited drilling has recorded strong near‐surface silver mineralisation (e.g. drillhole MCP421: 11m @ 89g/t Ag & 0.32g/t Au from 35m).
Two drillholes were completed at Mozart in this quarter (MODD002 – 003) to test down dip Au‐Ag mineralisation intersected in historical holes, along with testing electrical geophysical anomalies within the Cheviot Hills mineralised corridor, targeting the equivalent favourable stratigraphic position where mineralisation is focused at Lady Hampden and Silver King.
Drillhole MODD002 intersected a promising alteration zone over a substantial downhole width with visible sulphide mineralisation. Results for both drillholes are pending.
Drilling of a number of prospective near‐mine targets will continue into quarter two with additional holes planned at Mozart, Junction North and White Rock West.
Regional Exploration Program
Field assessment of the portfolio of regional targets defined in late 2011 continued during the quarter with detailed mapping, rock chip sampling and soil surveys commencing on several of the 12 highest priority prospects including Girard East, Girard West, Mandrake and Kimberley. Additional detailed mapping and soil sampling programs are planned for the Area B, Tea Tree, Mariners and Cemetery prospects in quarter two, and a program of electrical geophysics will commence on a number of prospects to help refine targets prior to drill testing.
During the quarter results for rock chip sampling from a number of prospects continued to return significant Au – Ag mineralisation. In addition to the previously reported results for the Kimberley prospect (10km west of the central ML’s, surface results to 26.3g/t Au & 759g/t Ag), highlights include mineralised rock chip samples at the following prospects–
o Girard West prospect (9km west of the central ML’s, surface results to 13.0g/t Au & 59g/t Ag), o Cemetery prospect (11km west of the central ML’s, surface results to 3.8g/t Au & 570g/t Ag), o Girard East prospect (6km west of the central ML’s, surface results to 4.8g/t Au & 370g/t Ag), o Tea Tree prospect (6km south of the central ML’s, surface results to 1.1g/t Au & 180g/t Ag), o Area B prospect (8km south of the central ML’s, surface results to 44g/t Ag), o Murray prospect (12km NW of the central ML’s, surface results to 3.7g/t Au) and o Mariners prospect (13km NW of the central ML’s, surface results to 0.7g/t Au).
Drilling of regional targets commenced in April with the first program at the Red Rock prospect. The Red Rock prospect is located on a small group of Mining Leases situated 15km north of the central ML’s. Prospect mapping and sampling at Red Rock in the second half of 2011 confirmed and further defined the dimensions of an extensive hydrothermal system with considerable gold‐silver metal potential. Previous drilling at Red Rock is relatively shallow with some high grade gold intersections reported (e.g. 7m @ 26g/t Au from 53m in drillhole RED003). Surface rock chip sampling completed by White Rock in 2011 also returned high grade values to 99g/t Au and 2,240g/t Ag. The current interpretation for Red Rock is that the best potential for gold mineralisation of significant scale and tenor is at deeper levels in excess of 100 metres within more favourable host rocks beneath the historical workings and previous shallow drilling. An orientation line of deep penetrating pole‐dipole electrical geophysics completed in October 2011 highlighted a robust and depth‐extensive anomaly coincident with a structural zone that is interpreted as one of the potential primary feeders to the large Red Rock mineralised system (Figure 6). A Native Title Claim by the Western Bundjalung People has been accepted for registration over a large area of land in northern NSW. This Claim covers all tenements owned by White Rock at Mt Carrington. At this point in time there is no requirement for White Rock to undertake negotiations in respect of this claim.
Figure 6: Red Rock 2D inversion of orientation pole‐dipole chargeability showing a discrete anomaly extending to depth that is coincident with northeast trending structures associated with historical workings and anomalous gold in surface rocks chips and shallow drilling.
GUYRA No exploration progress to report.
CORPORATE
There are 82 million shares on issue including 1.94 million shares under ASX escrow. During the quarter 2.12m shares were issued under the Entitlement Offer raising $0.32M (before costs). The Company held $3.56M cash as at 31 March 2012.
About White Rock Minerals
White Rock is an Australian minerals exploration company focussed on the discovery and development of shallow gold, silver and copper deposits in the New England Fold Belt, northern NSW. The Company is targeting deposit styles similar to those at Cracow, Mt Rawdon and Mt Morgan.
White Rock’s cornerstone asset is the 100% owned Mt Carrington project where shallow Indicated and Inferred Mineral Resources totalling 284,000oz gold and 23.3Moz silver* have been defined. Exploration drilling at Mt Carrington is in progress with the aim of extending the shallow Resource base, and to test a number of prospective regional and near‐mine targets within a tenement area of 600km2 over the under‐explored Drake Volcanics.
Market Capitalisation: A$12m @ A$0.15/share Issued Capital: 82m Ordinary shares, 6.4m Unlisted options Balance Sheet: Cash ~A$3.56M (31 March 2012), no debt Shareholders Greenstone Property Pty Ltd 6.87%
Silverstone Investment Holdings Pty Ltd 5.91%
Board and Management 4.30%
Grand South Development Ltd 3.79%
Banlona Pty Ltd 2.50%
TOP 20 41%
Board and Management Brian Phillips ‐ Non‐Executive Chairman
Geoffrey Lowe ‐ Managing Director
Steven Olsen ‐ Non‐Executive Director
Amber Rivamonte ‐ Company Secretary
Janet Mason ‐ Chief Financial Officer
Rohan Worland ‐ Exploration Manager
Resources
MT CARRINGTON INDICATED & INFERRED MINERAL RESOURCE SUMMARY
Tonnes
Gold grade (g/t)
Gold ounces Silver grade
(g/t) Silver ounces
Gold Dominant Deposits
5,010,000 1.4 221,000 2.8 457,000
Silver Dominant Deposits
12,210,000 0.2 64,000 58 22,805,000
Total Resources
Indicated 4,670,000
153,000
4,342,000
Inferred 12,550,000
131,000
18,920,000
Total 17,220,000 284,000 23,262,000
*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 for Strauss, Kylo, Lady Hampden, Silver King and White Rock North have been taken from the resource estimate prepared by Ravensgate Minerals Industry Consultants on behalf of White Rock Minerals Ltd and authored by Mr Don Maclean. Mr Maclean is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken 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 Maclean consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. The gold and silver Resource figures for White Rock and Guy Bell 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.
About Mt Carrington, New South Wales Mt Carrington is located near the township of Drake in northern New South Wales and is only a 4 hour drive from Brisbane. The project covers the historic Drake Mineral Field.
Gold was first discovered in the region in 1853 with a number of gold‐silver discoveries made over the next 25 years at the Drake, Tooloom, Pretty Gully, Lunatic and Boorook fields. In 1886 gold and silver were identified at Drake (then called Fairfield), Mount Carrington, White Rock and Red Rock. Prospecting and small‐scale mining of high‐grade gold silver and copper lodes continued through to the 1920’s.
The Drake field saw a resurgence of exploration from the 1960’s onwards. Carpentaria Exploration explored the White Rock and Lady Hampden areas for a number of years, and in 1970 Mount Carrington Mines Ltd (MCM) was floated. MCM planned to develop a resource base on a number of the Mt Carrington gold‐silver deposits, and from 1974 to 1976 the company mined 9,500 tonnes at a grade of 220g/t Ag and 5 g/t Au from the Lady Hampden open pit.
The Mt Carrington field was explored further in the mid 1980’s and MCM constructed and commissioned a new open pit mining operation, focussed on extracting oxide gold and silver ore from the Strauss, Kylo, Guy Bell and Lady Hampden deposits. The operation ran from 1988 to mid‐1990, producing approximately 22,000 oz of gold and 435,000 oz of silver. The mine closed due to depletion of oxide ore and secondary copper zones causing CIP processing issues. At the time of closure the gold and silver prices were US$370 and US$5 respectively. Following the mine closure a joint venture was formed between MCM and CRA Exploration. CRAE was focused on exploring for ‘a large polymetallic mineralised system in a Pacific Rim‐type environment’. Their work identified a 15km diameter, circular feature of subdued magnetic response. The feature hosts all of the known gold, silver and copper mineralisation in the Drake Field. Recent detailed mapping by White Rock Minerals Ltd has established the feature as a large volcanic caldera structure.
In April 2008 Rex Minerals Ltd acquired the project and subsequently re‐estimated a shallow Inferred Resource base of 190,000 oz Au and 10.5M oz Ag. White Rock Minerals was demerged from Rex Minerals in June 2010 with the purpose of undertaking Resource definition drilling and feasibility studies to increase the Resource base and assess the viability of near‐term re‐development of the project into an open pit gold‐silver mining operation. The initial twelve months of Resource evaluation has increased the Resource base on the project to 284,000 oz Au and 23.3M oz Ag. In conjunction, a comprehensive regional exploration program testing epithermal‐style precious metal targets defined within the 400 square km regional volcanic caldera feature is ongoing, and this has defined several prospects with high grade Au and Ag anomalism at surface. No systematic regional exploration has been undertaken on the mineral field for over 16 years.
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
WHITE ROCK MINERALS LTD
ABN Quarter ended (“current quarter”)
64 142 809 970 31 March 2012
Consolidated statement of cash flows Cash flows related to operating activities
Current quarter $A’000
Year to date (6 months) $A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration
(1,026)
(219)
(4,363)
(540) 1.3 Dividends received 1.4 Interest and other items of a similar nature
received 51 165
1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material)
Net Operating Cash Flows
(1,194) (4,738)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets
‐
(22) 1.9 Proceeds from sale of: (a) prospects
(b) equity investments (c) other fixed assets
1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material)
Net investing cash flows
‐ (22)
1.13 Total operating and investing cash flows (carried forward)
(1,194) (4,760)
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010
1.13 Total operating and investing cash flows
(brought forward) (1,194) (4,760)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 318 3,318 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) (46) (295)
Net financing cash flows
272 3.023
Net increase (decrease) in cash held
(922)
(1,737)
1.20 Cash at beginning of quarter/year to date 4,485 5,300 1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter 3,563 3,563
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
97
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
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.
Amount available $A’000
Amount used $A’000
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation
522
4.2 Development
4.3 Production
4.4 Administration
242
Total
764
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 3,563 4,485
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22)
3,563 4,485
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
Appendix 5B Mining exploration entity quarterly report
+ 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
82,088,865 80,148,394
7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐backs
2,121,666
2,121,666
$0.15
$0.15
7.5 +Convertible debt securities (description)
7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor)
6,050,000 360,000
Exercise price $0.38 $0.38
Expiry date 1/8/2014 30/4/14
7.8 Issued during quarter
7.9 Exercised during quarter
7.10 Expired/lapsed during quarter
7.11 Debentures (totals only)
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 5
7.12 Unsecured notes (totals only)
Compliance statement 1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 30 April 2012 (Company secretary)
Print name: Amber Rivamonte
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.
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