Thomson Resources (ASX:TMZ) and White Rock Minerals (ASX: WRM) report that they have amended their original earn-in and joint venture agreement for the Mt Carrington Project in a bid to capture the polymetallic value of the project’s deposits via Thomson’s New England Fold Belt ‘Hub and Spoke’ central processing strategy.
The amended agreement will allow Thomson to focus spend on the project through exploration and development activities over two stages, allowing it to earn up to 70% of the project in total.
Stage 1 will see Thomson earn a 51% interest via completion of at least $5M in expenditure, comprising exploration and care & maintenance work over a 3 years period beginning 7 March 2022.
Stage 2 will allow Thomson the opportunity to earn an additional 19% via completion of at least an additional $2M in expenditure, also comprising exploration and care & maintenance work, across 2 years.
The companies note that White Rock is free-carried through the exploration earn-in period, with Thomson continuing to manage the project.
Speaking on the update, Thomson Resources Executive Chairman David Williams said: “The work we have been able to undertake during the first phase of the earn-in agreement has given us a really good feel for and understanding of the Mt Carrington site and how best to develop the Project. We consider that the whole Project has a lot of unrealised base metal potentiality along with the silver and gold. By pursuing solely the gold first production this value would not be captured.
“We strongly believe that Mt Carrington has the potential to become an important part of our centralised processing approach, which in turn will provide a stronger future for the Mt Carrington Project”
Further we really think that the broader Mt Carrington polymetallic picture will fit in well with our New England Fold Belt Hub and Spoke strategy and we have been keen to explore this further. This has not been possible under the structure of the original agreement.
Thomson appreciates White Rock’s understanding of our thinking on this and in supporting us with a restructure of the earn-in terms to enable this exploration opportunity to happen.
We strongly believe that Mt Carrington has the potential to become an important part of our centralised processing approach, which in turn will provide a stronger future for the Mt Carrington Project.”
White Rock Managing Director & CEO Matt Gill Added: “White Rock is extremely pleased to continue to partner with a visionary group like Thomson Resources. The JV partners have worked extremely well together, sharing a common vision for this project, and we wish to see this alliance continue. They have a clear strategy to unlock the potential from the consolidation of various gold and silver assets in and around our advanced Mt Carrington project in NSW. We also believe that a re-focus on the broader exploration potential of the Mt Carrington project can unlock further value and enhance the project’s development and success.
With the merger between White Rock and AuStar Gold (a significant landholder and with a high-grade gold production and exploration tenement profile in the prolific Victorian Goldfields) now successfully completed, and diamond drilling occurring at the high-grade gold Morningstar underground gold mine, continuing to joint venture our Mt Carrington asset will allow White Rock to focus on this significant Victorian gold production and exploration opportunity as well as our exciting projects in Alaska.”
The Mt Carrington gold-silver-base metal project sits along the Bruxner Highway in northern NSW, 5km from the township of Drake.
The project is located one hour from the regional centres of Casino and Tenterfield in New South Wales, and it is also within trucking distance of Thomson’s 100%-owned Texas District, Conrad, and Webbs silver base metal mines.
Thomson notes that it’s primary focus will be on incorporating the known gold-silver-zinc-copper mineralisation at Mt Carrington into its series of ‘Hub and Spoke’ Mineral Resource Estimates, with the Company aiming for a +100 Moz Silver equivalent resource base to catalyse potential development of a central processing facility.
The existing Mt Carrington metallurgical and JORC 2012 and 2004 Mineral Resource Estimates will be revised under the JORC 2012 code to report integrated gold-silver-zinc-copper mineralisation and incorporated into the ongoing centralised processing pathway study.
Images: Thomson Resources Ltd