Thomson Resources Ltd (ASX:TMX) announced today that it has entered an earn-in deal with White Rock Minerals Ltd (ASX:WRM) to progress the latter’s Mt Carrington Gold & Silver Project.
The involved parties have signed a binding and exclusive Term Sheet for a three-stage earn-in, with the option to form a 70:30 joint venture at Thomson’s election.
Under the new earn-in deal, Thomson could earn up to 70% of White Rock’s Mt Carrington gold and silver project.
The companies would fund both fund mine development and further exploration of the Mt Carrington gold-silver hub on a pro-rata basis.
Located just 5km from the township of Drake in northern NSW, the Mt Carrington Gold-Silver Project has a long history of gold-silver and copper mining.
Aside from being a resource hub, the project includes other potentially useful assets; including an onsite office and accommodation and amenities; a 1.5Mt taillings dam; a 750ML freshwater dam; a reverse osmosis water treatment plant; access to State power grid; previous processing plant foundations; and a current environmental assurance bond of ~$0.0968M.
“Securing a quality partner to advanced Mt Carrington is a key and timely step in White Rock’s strategy to unlock the value in all of our project,” said Matt Gill, Managing Director & CEO of White Rock.
Gill revealed that project management allocation to Thomson will allow White Rock to divert its focus towards developing the Red Mountain VMS Project and Last Chance intrusion-related Gold System (IRGS) projects in Alaska, as well as exploring the high-grade Walhalla-Woods Point gold belt in Victoria.
Thomson’s consolidation strategy
White Rock’s Mt Carrington project, is close to Thomson’s Webbs, Conrad and Hortons projects, which also host significant silver-gold resources.
Despite the proximity of the projects, they have never been centrally processed under a single exploration company.
Now with the term sheet, Thomson is seeking to pursue its consolidation strategy – the “Hub and Spoke Strategy” – to develop and process the resources towards a singular project with a large precious metal base.
“Thomson is building momentum with its ongoing consolidation efforts focused on its new ‘Hub and Spoke’ silver–gold strategy,” explained David Williams, Executive Chairman of Thomson.
“Mt Carrington is well advanced down the Feasibility Study path, and with due diligence completed at both Webbs and Conrad, there is an ability to bring together the different resources in these silver-gold deposits to significantly strengthen the economic viability of all the projects.”