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PERTH (miningweekly.com) – An updated scoping study for the Mt Carrington gold/silver project, in New South Wales, has increased White Rock Minerals’ confidence in the project.
The updated scoping study increased the project’s pre-tax net present value from A$15.5-million estimated in 2014, to A$60.6-million, while the internal rate of return increased from 51% to 103%.
The project’s capital costs were also reviewed, and increased from A$20.6-million to A$24.2-million, with capital payback expected in less than a year. Operating costs were revised downward from A$875/oz to A$800/oz, given the current market conditions.
“White Rock is wonderfully placed given the recent rise in the Australian gold price to five-year highs. Our Mt Carrington gold/silver project has great leverage to the Australian gold and silver prices, with these outstanding results from the updated scoping study providing further impetus for us to take the project through to feasibility study,” CEO Matt Gill said on Tuesday.
The project was expected to deliver about 111 000 oz of gold and 6.7-million ounces of silver, over a mine life of seven years.
Gill said that the company was also energised by its proposed acquisition of the Red Mountain polytmetallic project, in Alaska.
White Rock recently signed a formal share purchase agreement with unlisted Atlas Resources in order to acquire Red Mountain, which consists of 16 state mining claims and 9 leasehold locations covering a total area of 16 km2.
Under the terms of the share purchase agreement, White Rock would issue 1.147 of its own shares for every Atlas share, along with 1.147 five-year options for every Atlas option, exerciseable at 3.5c each.
“We believe both projects provide the building blocks on which we can seek to increase shareholder value. It is an exciting time to be building a company with exposure to gold and silver, and in a potential supply-constrained zinc market,” Gill said.
White Rock estimated that 12 months of work would be required to take the Mt Carrington scoping study to prefeasibility level, with the work to include process design testwork and flow sheet optimisation. In parallel, the company would complete the environmental-impact statement, allowing for permitting to be undertaken.