White Rock Minerals has entered into a partnership with Sandfire Resources for development of its 100 per cent-owned Red Mountain zinc project in Alaska.
The project contains a JORC 2012 inferred mineral resource of 9.1 million tonnes (Mt) or ore at 12.9 per cent zinc equivalent at a 3 per cent cut off.
In addition to zinc prospectivity, the project also hosts up to 286,000t of lead, 53.5 million oz (Moz) of silver and 352,000oz of gold.
White Rock will use Sandfire’s technical expertise for development at the project, which includes $20 million in funding over a four-year period, with a minimum of $6 million in the first year. This will allow Sandfire to earn 51 per cent in a joint venture (JV) agreement with White Rock.
If Sandfire funds a further $10 million and delivers a pre-feasibility study over an additional two years it can earn up to 70 per cent of the project. If White Rock does not elect to contribute to the joint venture in stage three or four, Sandfire can earn 80 or 90 per cent respectively.
White Rock managing director and chief executive officer Matt Gill said that Sandfire shared White Rock’s vision for the project, calling them a cornerstone investor.
“Securing a high-quality partner with world leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of White Rock’s globally significant high-grade zinc VMS Red Mountain project,” he said.
“White Rock looks forward to collaborating with Sandfire Resources as part of this new strategic relationship.”