White Cliff Minerals Ltd.: Quarterly Report for the Period Ended 30 September 2016

Perth, Australia - White Cliff Minerals Ltd. (ASX:WCN) is pleased to provide the company's Quarterly Report for the period ended 30 September 2016.


Highlights

- Drilling at Aucu Gold project delivers high grade gold mineralisation and visible gold

- Three Substantial Gold in Soil Anomalies identified at Merolia Gold Project

Summary

Kyrgyz Republic Exploration - Aucu Gold Project

During the September quarter the Company continued drilling at the Aucu Gold deposit in Central Asia, targeting the high grade extension of the Upper Gold Zone. The drilling has identified a new mineralised zone containing visible gold in both the drill holes and in surface outcrop. At the date of this report 16 holes for 3650 metres have been completed of the 5,000 metre 2016 drill program.

Western Australian Exploration - Gold Projects

Extensive soil geochemical sampling programs have been completed at multiple prospects within the Merolia project. Substantial gold anomalies have been identified at the Ironstone, Comet Well and Burtville East prospects. The Company has applied for statutory drilling approvals and intend to test these targets either late in 2016 or early in 2017.

Western Australian Exploration - Lithium Projects

Liontown Resources Limited has completed an initial phase of exploration at the Lake Percy tenement which included collection of soil samples and reanalysis of historical samples. Liontown has identified several surface lithium anomalies associated with tin, tantalum and other elements typically hosted by rare metal pegmatites. Liontown can earn up to a 70% interest in the Lake Percy tenement for expenditure of $1.75 million.

1 The Aucu Gold Project, Central Asia (89%)

During the September 2016 quarter the Company continued drilling to test the high grade eastern section of the Upper Gold Zone. Multiple high grade gold intersections have been encountered including:

- 3 metres at 9.8 g/t gold including 1 metre at 25.6 g/t gold

- 4 metres at 12 g/t gold including 1 metre at 41.3 g/t gold from 49 metres

- 3 metres at 14 g/t gold including 1 metre at 41.6 g/t gold

- 9 metres at 8.3 g/t gold from 98 metres including;

-- 1 metre at 21.6 g/t gold and;

-- 1 metre at 24.0 g/t gold

- 7 metres at 5.1% copper within 34 metres at 1.36% copper from 71 metres

The high grade gold intersections occur within a newly discovered structure called the quartz zone. The Quartz Zone occurs at the eastern end of the Eastern Gold Zone adjacent to the main porphyry intrusion. High grade gold mineralisation is largely confined to the quartz reef which ranges from 1-3 metres wide and can be traced at surface over 210 metres length. Visible gold has been panned from the quartz reef in five road cuttings covering 150 metres length (see Figures 1 & 2 in the link below). The quartz reef extends north-west and interpreted to be the same reef encountered in drill hole UGZ15-35 which intersected 8 metres at 55 g/t gold (see Figure 1 in the link below).

Drilling has confirmed that the quartz reef is sub-vertical and has an orientation of 320 degrees and interpretation of magnetic data suggests that it has a total length of 450-510 metres. The quartz reef is offset by a major fault at the northwest end and by a porphyry intrusion at the southeast end (see figure 1 in the link below). Further drilling is required to establish the location of extensions to the reef.

The Quartz Zone is characterised by a central 1-3 metre wide quartz reef with open textures (voids, quartz crystals, holes) and intense sericite-carbonate+/- manganese alteration containing abundant free gold surrounded by a broad alteration zone containing malachite (copper oxide), goethite and limonite (after pyrite and chalcopyrite).

The Company is continuing to drill the Quartz Zone on sections 30-50 metres apart down to 100 metres vertical depth. Three of the four planned sections have been completed. Due to the success of the drilling to date and the amount of visible gold being recovered at surface the Company has planned additional drilling to test the mineralisation further along strike in both directions.

The Company will endeavour to complete as much drilling as possible in the remainder of the field season.

Drilling Update

As of the date of this release a total of 3,615 metres have been completed in this year's drill program consisting of 16 diamond holes and 13 RC holes as detailed in Table 2 (see the link below). The Company is awaiting assay results for ERC16-28, 29 and 30, ERC16-34, 35, 36, 37, 38, 39 and 40.

The Reverse Circulation rig is currently drilling ERC16-24 to ERC16-26 at the top of the Quartz Zone while further roads are bull dozed at the bottom of the hill. The Company will endeavour to complete another 1,000-1,500 metres of drilling in 2016.

Aucu Gold Deposit Summary

From an initial drill program in 2014 the Company previously 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 ounces of contained gold.

In 2015, drilling identified exceptional gold mineralisation in the eastern section of the UGZ over a strike length of at least 500 metres. 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; and

- 1 metre at 58 g/t gold.

The average grade of the gold intersections across the eastern UGZ was 45 g/t gold from several parallel lodes. In addition:

- Mineralisation outcrops at surface;

- Remains untested in both directions and at depth;

- Overall metallurgical recovery of gold from all mineralised zones is 99%; and

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

2 Merolia Gold and Nickel Project (100%)

During the September quarter the Company conducted an extensive soil sampling campaign to test multiple gold targets at the Ironstone, Comet Well and Burtville East prospects within the Merolia project, immediately southeast of Laverton, Western Australia (see Figure 4 in the link below).

Substantial gold anomalies were identified at the Ironstone, Comet Well and Burtville East prospects.

Ironstone Gold Prospect (100%)

Analysis of 558 soil samples identified a significant gold anomaly at surface that extends over 240 by 180 metre area with a maximum gold value of 340 ppb (0.34 g/t) occurring within a halo of +100ppb gold values. The anomaly occurs 190 metres west of recent and historical drilling that intersected 4 metres at 5 g/t and 0.3 metres at 25 g/t gold (see Figure 5 in the link below). The Company will drill test the anomaly in late 2016 or early 2017.

Comet Well Trend (100%)

Substantial gold in soil anomalies were identified along the Comet Well gold trend near Laverton in Western Australia.

The anomalies contain a maximum gold value of 2600 ppb (2.6 g/t) but are more commonly 20-50 ppb gold with several samples greater than 100ppb. The anomalies extend along approximately 2.7 kilometres of strike and in places are up to 200-400 metres wide. Drilling is planned for late 2016 or early 2017.

Comet Well Background

The Company reported the discovery of gold nuggets within the regional Ironstone Gold prospect in February 2016. Detailed metal detecting identified a significant number of gold nuggets at surface over a 3 kilometre long trend (the Comet Well trend) that coincides with a major regional fault structure. The nuggets were located by prospectors operating under a formal tribute agreement with the Company. Recent prospecting by the tribute group has identified visible gold from a 2 metre deep pit occurring adjacent to a quartz vein where 4 ounces of gold has been recovered (see Figure 8 in the link below). Along the 3 kilometre trend a total 40 ounces of gold has been recovered with the largest nugget weighing 20 grams.

Evaluation of the regional magnetic data over the Ironstone gold project has identified several NW-SE trending shear systems that have the potential to host substantial gold mineralisation (see Figure 9 in the link below). The Comet Well trend and associated regional structures extend at least 30 kilometres north to the A1 Minerals Bright Star deposit and only limited historical exploration has been undertaken over these structures.

Burtville East Gold Prospect (100%)

A substantial gold in soil anomaly was also identified at the Burtville East gold prospect (see figure 4 in the link below), part of the Merolia gold project, near Laverton Western Australia.

The soil anomaly occurs at surface and extends over 250 by 185 metre area in a roughly NNW orientation. The maximum gold values are 42,100 ppb (42.1 g/t) and 886 ppb (0.88 g/t gold) which occur adjacent to the edge of mullock dumps or ore stockpiles. There is also a large anomalous zone +100 ppb extending 150 by 75 metres and an outer halo of 250 by 185 metres of +25 ppb gold values.

In addition sampling conducted over existing historically mined surface rock piles has identified substantial gold mineralisation. The gold grades within the surface rock piles ranges from waste (<0.5 g/t gold) to high grade ore (38 g/t gold).

The Company is currently preparing the required approvals so that drilling can be undertaken in late 2016 or early 2017.

Burtville East Background

The Burtville anomaly occurs immediately around historical workings that consist of two shafts and several mullock or ore dumps. The historical workings targeted quartz veins within strongly foliated basalts. Historical drilling intersected substantial mineralisation including 5 metres at 33 g/t gold, 2 metres at 6.65 g/t gold and 3 metres at 5.3 g/t gold.

The historical drilling indicates that the quartz vein is striking NNE and dipping steeply NW but further drilling 40 metres north and south did not locate any additional mineralisation. The recorded orientation is not consistent with the local geology or with the general orientation of the surface gold anomaly and Company geologists suspect that a more likely quartz vein orientation is NNW trending with the regional geology. If this is the case, then most of the historic drilling of this target would have missed the quartz vein.

In August 2016 the Company conducted a detail soil geochemical sampling program that identified a substantial gold in soil anomaly that extends over 250 by 185 metre area in a roughly NNW orientation. The maximum gold values are 42,100 ppb (42.1 g/t) and 886 ppb (0.88 g/t gold) which occur adjacent to the edge of mullock dumps or ore stockpiles. There is also a large anomalous zone +100 ppb extending 150 by 75 metres and an outer halo of 250 by 185 metres of +25 ppb gold values.

In October 2016 sampling of the historically mined surface rock piles reveals substantial mineralisation.

Further Work

The Company has finalised a preliminary drilling program and has lodged a program of work with the Department of Mines and Petroleum. Approval to conduct drilling is expected in two-three weeks and drilling is expected to commence in November or early December.

3 Lake Percy Lithium Joint Venture (reducing to 30%)

During the June quarter the Company agreed to a joint venture over its Lake Percy tenement located approximately 430km east of Perth Western Australia (see Figure 13 in the link below). Under the joint venture, Liontown Resources can earn up to 70% equity in the 41km2 Lake Percy tenement (EL63/1222).

The Project is considered prospective for economic lithium mineralisation due to:

- the presence of very large pegmatite bodies which are up to 550m thick and 3km long (see Figure 14 in the link below); and

- its location at the northern end of Lake Johnson Greenstone Belt (see Figure 13 in the link below), which hosts several lithium-bearing pegmatites including ~20km to the south and a second area near the Maggie Hayes nickel deposits (see Poseidon Nickel (ASX:POS) ASX releases dated 23rd May and 9th June 2016).

The Project area has been extensively explored for nickel, including multiple phases of RC and diamond core drilling; however, there have been very few assays for lithium and the pegmatites have largely been ignored. Strong surficial weathering means that spodumene is unlikely to be preserved at surface and further drilling will be required to test for primary lithium mineralisation.

Exploration work conducted during the September quarter included:

- Geological mapping that defined large pegmatite bodies over 4.5km strike with surface widths up to 550m.

- Re-assayed previously collected White Cliff Minerals soils (261 samples);

- Collected additional 208 soil samples to fill in gaps not covered by White Cliff Minerals sampling; and

- Reprocessed/reimaged open file aeromagnetic and radiometric data for tenement.

Soil sampling returned anomalous lithium associated with tantalum, tin and other elements typically hosted by rare metal pegmatites. Liontown will undertake further soil sampling before designing a maiden drilling program to test for primary lithium mineralisation.

4 Other Projects

The Company has conducted extensive soil sampling programs over several nickel and gold prospects during the June quarter including the Ghan Well and the Bremer Range projects. Analysis of these samples has been deferred to the December quarter analysis and will be reported as they become available.

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About White Cliff Minerals Ltd:

White Cliff Minerals Ltd. (ASX:WCN) is a Western Australian based exploration company with the following projects:

Chanach Copper-Gold Project (89%): The Project contains extensive porphyry related gold and copper mineralisation starting at the surface and extending over several kilometres. Drilling during 2014 has defined a major gold discovery with an initial inferred resource of 1.15Mt at 4.2 g/t containing 156,000 ounces of gold Drilling has also defined a significant copper deposit at surface consisting of 10Mt at 0.41% copper containing 40,000 tonnes of copper. Drilling in 2015 identified extensions of the known mineralisation over an additional 900 metres of strike with multiple intersections greater than 1 ounce per tonne (31.1 g/t) gold. Extensive mineralisation occurs around both deposits demonstrating significant expansion potential. The project is located in the Kyrgyz Republic, 350km west-southwest of the capital city of Bishkek and covers 83 square kilometres. The Chanach project is located in the western part of the Tien Shan Belt, a highly mineralised zone that extending for over 2,500 km, from western Uzbekistan, through Tajikistan, Kyrgyz Republic and southern Kazakhstan to western China.

Merolia Project (100%): The project consists of 771 square kilometres of the Merolia Greenstone belt and contains extensive ultramafic sequences including the Diorite Hill layered ultramafic complex, the Rotorua ultramafic complex, the Coglia ultramafic complex and a 51 kilometre long zone of extrusive ultramafic lava’s. The Intrusive complexes are prospective for nickel-copper sulphide accumulations possibly with platinum group elements, and the extrusive ultramafic rocks are prospective for nickel sulphide and nickel-cobalt accumulations. The project also contains extensive basalt sequences that are prospective for gold mineralisation including the Ironstone prospect where historical drilling has identified 24m at 8.6g/t gold.



Contact:

White Cliff Minerals Ltd.
www.wcminerals.com.au