This from 321.com
There are some times when buying a stock has the potential for getting you into serious legal problems. Such is the case of White Rock Minerals (WRM-AX, WRMCF-OTCBB). If White Rock got any cheaper and you bought shares, theBobbieswould be at your door shortly thereafter for stealing. No shit. This is the most absurdly under priced stock I have ever owned.
White Rock is an Australian listed company with OTCBB listed shares for American and Canadian investors. It has a pair of world class potential projects in Alaska including one with a $3.5 billion dollar rock in the ground 43-101 and a couple of interesting gold projects worth drilling the crap out of. Alas they signed up a drill contractor who thought he was a hooker and he screwed them royally.
You have a short 100-120 day work period in Alaska. Winter ends late and starts early. If you don’t have drills and crews in place by late June you are screwed for the year. The drill contractor brought the drills but only half the men he promised. While that’s a common story in the north this year, it has cost White Rock tens of millions of dollars in lost market cap. They aren’t producing much in the way of drill core to be sampled. In addition the assay labs are 4-6 months backed up so they may as well be tossing a dart at a dartboard to know where to drill. Since Alaska has been the primary focus, investors are throwing in the towel at exactly the time they should be throwing money at White Rock.
In addition, WRM merged with AuStar Gold in August this year to acquire theWoods Point Gold projectin Victoria in Australia with 670 square kilometers of exploration potential. The project is near the Fosterville Mine owned and operated by Kirkland Lake Gold. It includes the former Morningstar Gold mine showing past production of over 800,000 ounces of gold at 26 grams gold per tonne. Currently White Rock has one drill turning underground. The core from the drilling shows visual gold. Australia has the same problem with assays as the US and Canada so results willtrickle in over the next few months.
White Rock did come up with incredible drill results already from the Red Mountain silver/zinc/lead VMS in Alaska. On the 16th they released the first assay for this year showing 0.2m @ 11.9% Zinc (Zn), 2.8% lead (Pb), 0.9% Copper (Cu), 63g/t silver (Ag), and 0.2g/t gold (Au), from 184.8m down hole. This polymetallic suite of metals can also be summarized as a 17.5% Zinc equivalent grade. That’s not a wide intercept but it does indicate the strike extends further than they realized. Remember this project already has $3.5 billion worth of high grade gold in the ground.
White Rock has another Australian asset in theMt Carrington gold and silver projectwith 352,000 ounces of gold and 23.2 million ounces of silver in a JORC resource. That should be worth something.
WRM has been crippled this year by a lack of obvious progress in Alaska. I’m not concerned, the gold and silver are still there regardless of the lack of progress on the assay side. The current drilling at Morningstar could cause an overnight rerating of the shares. As of right now White Rock has a market cap of about $39 million Aussie with somewhere around $12 million in cash. I was adding to my already very large position a week or so ago at $.24 USD and thought I was robbing a bank. It’s $.19 USD now some 20% cheaper in a week.
White Rock Minerals Ltd
WRM-AX $.275 Aussie (Sep 17, 2021)
WRMCF-OTCBB
142 million shares
