White Cliff Minerals : Visible Gold in Quartz Outcrop - Aucu Gold Deposit

• Extensive mineralised zone exposed in latest drill track cutting

  • Visible gold panned from quartz outcrop and;
  • Visible gold panned from quartz zone in dozer cut

  • Alteration zone approximately 37 metres wide

• Drilling Update

White Cliff Minerals Limited ("White Cliff" or the "Company") is pleased to report on a site visit of the Aucu Gold project by the Managing Director Todd Hibberd.

During the visit visible gold was identified in both an outcropping quartz vein and in the same vein in a drill track cutting 11 metres further down the hill (Figures 1 & 2). The same quartz vein also outcrops further down the hill. The outcropping quartz veins occur with a wide alteration zone consisting of several veins and shear zones that appear to be the eastern continuation of the Eastern Gold Zone.

The quartz vein outcrops 127 metres along strike from the high grade zone of 8 metres at 55 g/t gold encountered in a 2015 drill hole (UGZ15-35). In addition the position of the outcropping quartz veins is consistent with the new structural interpretation of shallowly plunging high grade lodes interpreted to occur at the intersection of the major NNW trending vertical faults and the shallow northerly dipping bedding.

Visible gold panned from quartz vein (see figure 2)

Figure 1: Fine grained gold extracted from a ~1 kilogram rock sample of the quartz vein outcrop visible at the top centre of figure 2

Outcropping quartz vein with visible gold (see figure 1)

Quartz vein in road with visible gold

Figure 2: Exposed quartz veins where visible gold has been panned form both the outcrop (at the top) and from the quartz vein exposed in the road cutting. The veins are part of a 37 metre wide intense alteration zone (white and yellow outcrop). The quartz veins trend northwest and outcrop over 45 metres of strike. They extend southeast for 177 metres from the high grade intersection (8 metres at 55 g/t) identified in drill hole UGZ15-35.

Inset map of quartz vein (Figure 4)

Figure 3: Location map of drilling with inset map of area around quartz veins containing visible gold. Geology consists of: pink-granodiorite, tan-sandstones, dark yellow-limestones, light yellow-alluvium and red-mineralised faults

Quartz vein in road with visible gold

Figure 4: Inset map showing location of quartz veins and planned RC drilling

Based on the identification of visible gold at surface over a 45 metre strike zone the Company has planned an additional 900 metres of reverse circulation drilling targeting the quartz veins over 100 metres of strike and to 100 metres depth (figure 4). Drill pads are currently being prepared and RC drilling will commence immediately.

Two diamond drill rigs continue to drill the Eastern Gold Zone on a 100m by 50 metre drill centre basis. Detailed field mapping conducted over the last three weeks and during the recent field visit has confirmed that the Company's new structural interpretation of the deposit is consistent with observed geology and the remaining drill holes in this year's drill program have been adjusted accordingly.

It appears that the background gold grade of the main NNW trending mineralised zone is between 2 g/t and 4 g/t gold but where NNW shear zones intersect with specific bedding units the plunging lodes can have grades ranging from 10 g/t to 60 g/t gold. Targeting the high grade plunging shoots is essential to determining an accurate average grade of the ore zones as a whole.

As of the date of this release a total of 1,624 metres have been completed in this year's drill program consisting of 11 diamond holes as detailed below:

The Company is awaiting assay results for EGZ16-12, EGZ16-17, EGZ16-18, EGZ16-22 and EGZ16-23. The drill rigs continue to drill out the Eastern Gold Zone as follows:

As previously reported (ASX releases 24 Mar 15 and 02 Apr 15), the Company announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 Million tonnes grading 4.2 g/t gold for 156,000 ounces1 of contained gold.

In 2015, drilling identified exceptional gold mineralisation2 to the east of the Upper Gold Zone (UGZ) over a strike length of at least 500 metres (ASX releases 11 Nov 15, 1 Dec 15 and 7 Dec 15). Results included:

• 8 metres at 55.2 g/t gold from 66 metres including 1 metre at 89.9 g/t gold

• 4 metres at 59.9 g/t gold from 66 metres including 1 metre at 189 g/t gold

• 2 metres at 43.5 g/t gold from 86 metres

• 1 metre at 103.4 g/t gold from 74 metres

• 3 metres at 41.4 g/t gold including 1 metre at 71 g/t gold

• 4 metres at 23.8 g/t gold from 85 metres

• 2 metres at 22 g/t gold from 102 metres

• 1 metre at 58 g/t gold

  The average grade of the gold intersections from the 2015 drill program across the UGZ - East was 45 g/t gold from several lodes. In addition:

• Mineralisation outcrops at surface

• Mineralisation remains open in both directions and at depth

• Overall metallurgical recovery of all mineralised zones is 99%

• Gravity recoverable gold averages 88.6% (gold that reports to the gravity concentrate)