News – AU – White Rock Minerals signs a term sheet with Thomson Resources to advance the Mt Carrington gold-silver project in NSW


White Rock Minerals prepares for bumper 2021 at the promising Last Chance Gold Target in Alaska

The term sheet stipulates that Thomson will earn up to 70% of White Rock’s Mt Carrington project by forming a joint venture to develop the project and bring it into production

White Rock Minerals Ltd (ASX: WRM) (OTCQX: WRMCF) has worked with Thomson Resources Ltd (ASX: TMZ) has concluded a binding and exclusive term sheet for a three-stage earn-in and the option of a joint venture contract to advance the Mt Carrington gold and silver project in northeast New South Wales

This term sheet provides for Thomson to earn up to 70% of White Rock’s Mt Carrington project by forming a 70:30 joint venture to develop the project and bring it into production

The parties would then pro-rata fund mine development and further exploration of the very potential Mt Carrington leases for epithermal gold-silver mineralization (base metal) and conceptual large copper-gold targets

Matt Gill, White Rock Managing Director and Chief Executive Officer, added: “White Rock is extremely excited to be working with a visionary group like Thomson Resources

“You have a clear strategy for realizing the potential of consolidating various gold and silver assets in and around our advanced Mt Carrington project in NSW

“Securing a quality partner to further develop Mt Carrington is an important and timely step in White Rock’s strategy to unlock the value of all of our projects

“The lure of free transportation at Mt Carrington through Phases 1, 2, and 3, and the assignment of project management at Mt Carrington to Thomson allow White Rock the funds and management time on our two exciting projects in Alaska (The High ) -grade silver and zinc Red Mountain VMS project and the neighboring IRGS project (Last Chance Intrusion-Related Gold System) as well as the equally exciting production and exploration opportunities within the high-quality Victorian gold belt of Walhalla-Woods Point

“With the proposed merger between White Rock and AuStar Gold Ltd (ASX: AUL) (a major landowner and with a high profile for gold production and exploration in the productive Victorian gold fields) the joint venture will enable our assets in Mt Carrington White Rock is focused on this significant Victorian gold production and exploration opportunity as well as our exciting Alaska projects ”

David Williams, Executive Chairman of Thomson Resources, said: “Thomson is building momentum with its ongoing consolidation efforts focused on its new silver-gold hub and spoke strategy

“Mt Carrington is a high quality precious metals project that complements the Company’s existing quality silver assets in Webbs, Conrad and adds value to Thomson’s nearby promising Horton gold project

“Mt Carrington is well advanced on the feasibility study path and with the due diligence done at Webbs and Conrad, there is an opportunity to pool the various resources in these silver-gold deposits to significantly improve the economics of all of the projects

“Negotiations with White Rock have been very positive and constructive, suggesting a future productive joint venture

“We look forward to working with the White Rock team and advancing the Mt Carrington project”

The Mt Carrington and Webbs, Conrad and Hortons projects host silver-gold resources and compelling precious metals exploration potential and are located in the New England region of northeast NSW

Despite their proximity to one another and their attractive mix of raw materials, these projects have never been consolidated under one company and have therefore not been developed until now

Thomson is aggressively pursuing a consolidation strategy in this region to merge these and other important resources into one overarching project with a large resource of precious metal (silver-gold), base and technology metals (zinc, lead, copper, tin) base, which could possibly be developed and processed centrally as part of Thomson’s new “Hub and Spoke” strategy

This includes important resources and exploration opportunities in northern New England and the southern granite belt that could support rapid development through the hub and spoke strategy

Thomson is currently evaluating whether the consolidated portfolio offers the option of central processing and blending of ores for processing and the critical resource scale to allow the use of processing technologies to maximize the recovery of silver-gold, base and technology metals justify is not considered under the currently proposed processing methods for the individual projects

The Company has engaged Brisbane-based metallurgy and process engineering consultants CORE Resources to evaluate the numerous metallurgical studies on these projects and other projects destined for consolidation and to confirm the potential compatibility of ores and processing options, including the Potential for the world of CORE Leading process technologies to optimize the processing and recovery of precious, base and technology metals

Under the terms of the Termsheet, Thomson commits to the first level earn-in, including a minimum spend of 500000 AUD in the first six months and progressive cash payments of 700A $ 000 over a period of 18 months at Thomson. It is at our sole discretion to decide whether to proceed to Phase 2, to remain 30% on the project, or to terminate the project

Thomson can advance the Mt Carrington Project in the following three phases, in which Thomson will receive 70% of the shares:

Phase 3: If Thompson chooses, exercise his right to acquire an additional 19% (70% total) of the project by paying White Rock A $ 12.5 million

Phase 4 – Operation: Project Management, Financing and Project Development Financing for the development of the project through to commercial production takes place on a pro-rata basis and either through a combined or separate financing agreement (s), which is described in more detail in the joint venture contract

Thomson will be in charge of the project and will have sole responsibility for ensuring that the project remains in good condition and that all costs for the upkeep and maintenance of the site are funded until the joint venture contract is closed, be it by 30 : 70, 51: 49 or 70:30 base

The Mt Carrington gold-silver project is located 3 miles from the Drake community in northern New South Wales on the Bruxner Highway

Gold, silver and copper mining at Mt Carrington has a long history since 1853 From 1974 to 1990 Mt Carrington Mines operated a modern, small-scale open pit

Thomson believes the Mt Carrington project holds great promise for the discovery of additional gold-silver mineralization (zinc-copper-lead)

A well-funded, district-scale exploration approach targeting high-grade, low-to-intermediate sulfidation, low-bulk, epithermal silver-gold and gold-copper deposits that might be present in this geological setting offers good potential for significant additional Discoveries in the context of Mt Carrington Resources

The above has been posted on its website by Proactive Investors Limited (the “Company”) and is made available under the terms of use of its website (see T&C)

Matt Gill of White Rock Minerals Ltd (ASX: WRM) tells Andrew Scott of Proactive that upon signing a contract with AuStar Gold Ltd (ASX: AUL), they will become a high-grade Victorian gold explorer and producer WRM will acquire 100% of the issued capital of AUL through an agreement

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White Rock Minerals, Thomson Resources, Gold, Project

News – AU – White Rock Minerals signs a term sheet with Thomson Resources on the Mt Carrington Gold-Silver Project in NSW to advance
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