Wednesday 18th Jul, 2018

White Rock, Sandfire partner for Alaskan zinc mine

Money. Photo: Jim Wilson
Photo: Jim Wilson

ASX miners White Rock Minerals and Sandfire Resources will work together on White Rock’s high-grade zinc project Red Mountain in Alaska.

White Rock on July 10 announced a “cornerstone investment and strategic relationship” which aims to leverage Sandfire’s technical expertise to develop the Red Mountain Project, and lean on Sandfire for further strategic support.

Sandfire will provide $20 million in funding over a four year term, and will in return earn a 51% share of the project’s joint venture. If the project requires more funding from Sandfire, and White Rock does not contribute further, the deal could leave Sandfire with 70, 80 or 90% of the joint venture.

“White Rock welcomes Sandfire as a strategic partner and cornerstone investor that shares White Rock’s vision for the exploration and development of the Red Mountain Project,” White Rock managing director Matt Gill said.

Red Mountain is based on an inferred mineral resource of 9.1 million tonnes of ore, at 12.9% zinc equivalent. The project also holds lead, silver and gold prospects.