(MENAFN- ProactiveInvestors - Australia) White Rock Minerals (ASX: WRM) has secured a drilling services agreement with major shareholder Titeline Drilling for the Mt Carrington gold-silver project in northern New South Wales.
The company is planning an accelerated program of resource expansion, project development and exploration programs at the wholly owned project.
White Rock will begin drilling immediately with an initial focus on the Red Rock and Mozart prospects, where first pass drilling in 2012 demonstrated the potential for new gold and silver resources.
Further drilling on these prospects is aimed at increasing the company's 750,000 ounce gold equivalent resource base and expanding the development options for the proposed 2013 feasibility studies.
Ongoing drilling in coming weeks will also test a number of other promising near-mine exploration targets, and provide drill core samples from within the current resource base for metallurgical and geotechnical test work.
The agreement with Titeline, which currently holds a 10.2% shareholding in White Rock, comprises staged cash payments totalling $112,000 and the issue of 6.58 million fully paid ordinary shares at $0.10 per share.
White Rock has previously completed a high level Scoping Study which demonstrated the viability of a low CAPEX, robustly economic, 40,000 ounce per annum gold-silver project with an 18 month capital payback.
In 2013 the company plans to undertake feasibility studies to progress and define the development options outlined in the Scoping Study.
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