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    Alt Resources executes MSA with Blue Cap to develop Tim’s Find

    Alt Resources Ltd (ASX: ARS) announced that it has clinched a non-binding Term Sheet with Blue Cap Mining Pty Ltd for the development of mining operations at the Tim’s Find Gold Project in Western Australia.

    As per the MSA term sheet, Blue Cap will provide mining, transport, processing, drill and blast, and other associated services to Alt.

    Meanwhile, Blue Cap will provide Alt with a $3 million WCF to help develop the initial mining operation and will continue until full payment of all invoices is completed from ore sales.

    ARS said that the formal documentation is currently being prepared for execution by the Companies which is anticipated to occur in the near future.

    The Company announced that it expects to deliver a resource upgrade in Q1 2020.

    Tim’s Find project

    Tim’s Find Gold Project is contained within Alt Resources’ Mount Ida and Bottle Creek Gold Project’s in the eastern goldfields of Western Australia.

    The Mount Ida South Project includes the Spotted Dog, Tim’s Find, and Shepherds Bush deposits in the south.

    Tim’s Find has a current JORC 2012 Indicated Resource of 360,000t @ 2.6g/t Au for 30,096oz Au and is held on the granted mining lease M29/421, which is owned 100% by MGK Resources Pty Ltd, a wholly owned subsidiary of the Company.

    Infill and extension drilling

    In September 2019, the Company had completed an additional ~2,500 metre RC drill program at Tim’s Find, comprising infill and extension drilling to the north and south of the Tim’s Find resource envelope.

    In July 2019, Alt announced results of an additional ~3,000 metres of RC drilling undertaken at Tim’s Find.

    Notable drill intersections

    Significant intercepts from the July drilling programs at Tim’s Find include 10m @ 6.32 g/t Au from 14m, including 2m @ 21.53 g/t from 20m; 5m @ 12.61 g/t Au from 26m, including 2m @ 28.53 g/t from 28m; 7m @ 5.90 g/t Au from 11m, including 1m @ 23.60 g/t from 15m; 17m @ 3.63 g/t Au from 8m, including 6m @ 9.15 g/t from 18m; 11m @ 4.86 g/t Au from 22m, including 2m @ 24.68 g/t from 28m; and 14m @ 4.34 g/t Au from 8m, including 1m @ 30.40 g/t from 19m.

    RC drilling program planned

    The company announced that an additional 2,500 metres of RC are planned to commence in November prior to the end of the year break, drilling additional infill resource drilling.

    ARS said that the priority locations for this drilling are being assessed, and dependent on the results from the September program, further extensional drilling at Tim’s Find may be undertaken.

    MSA term sheet with Blue Cap Mining

    Alt Resources reported that it has executed a non-binding term sheet with Blue Cap Mining Pty Ltd for the provision of Mining Services Agreement (MSA) at the Tim’s Find project.

    Under the provisions contained in the MSA term sheet, Blue Cap will provide mining, transport, processing, drill and blast, and associated mining services to the Company.

    The proposed MSA is to be on an open book basis with Blue Cap providing a $3.0 million Working Capital Facility (WCF) to facilitate initial mining operations and will continue until ore sales allow full payment of all invoices.

    The WCF is to be fully repaid within 6 months from first drawdown, subject to a force majeure clause.

    Blue Cap to receive facility fee

    Alt reported that Blue Cap will receive establishment fee of $10,000 upon document execution.

    Alt will also issue 50 million ordinary shares on signing of the formal documentation. These will be issued in exchange for a credit of $1.6 million against the value of the total contracted works.

    The company said that the ordinary shares will have an issue price of 0.032 cents and will have a voluntary restriction period of 12 months from the date of issue.

    Tim’s Find: potential for cash flow

    Alt Resources said that the July 2019 Mt Ida Scoping Study resulted in various resources forming the basis of a potential robust low cost open pit mining project.

    ARS said that subsequent work and engagement with Blue Cap have led to the recognition that Tim’s Find provides the company with an opportunity for early cash flow without the initial capital requirement associated with the processing plant outlined in the Scoping Study.

    Next steps

    The Company announced that it intends to permit and mine the entire Tim’s Find pit shell during planned mining operations in 2020, stockpiling lower grade ore for later processing and toll treating approximately 120,000 tonnes of the higher-grade core of the Tim’s Find ore body.

    ARS said that it is progressing operations onsite undertaking survey work and studies relating to mine permitting required for final approval by the DMIRS to undertake mining operations. The proposed mine plan submissions are scheduled for lodgment with the DMIRS by end of November 2019.

    Alt reported that it has been systematically progressing all significant studies and survey work relative to both the Tim’s Find and Bottle Creek mine permitting.

    The studies and survey work at completion form significant components of the maiden ore reserve statement and feasibility study, which is currently underway for the Mt Ida and Bottle Creek gold project and is scheduled for release Q1 2020.

    The Company announced that it expects to deliver a resource upgrade in Q1 2020.

    Management comments

    Alt’s CEO James Anderson said: “We are very pleased to have an agreement with Blue Cap, they are a private and well respected, mobile mining service group who will assist us in developing the Tim’s Find project into production.

    In the current high gold price environment, developing Tim’s Find into small-scale mining operation with the potential to generate free cash is a logical step for Alt and in line with the corporate strategy to become a gold producer and provide non-dilutive working capital for the Company.

    The planned mining operation is reasonably uncomplicated with Tim’s Find being located on a granted mining lease, the ore is oxide and at surface in a planned shallow open pit environment with a reasonable grade”.

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    • Delayed Prices (USD) - Last Updated 01-07-2022
    • Gold $1,819.00
    • Silver $20.75
    • Platinum $916.00
    • Palladium $1,898.00
    • Dalian Iron Ore i2209 $121.63
    • Aluminium $2,491.00
    • Cobalt $72,460.00
    • Copper $8,365.50
    • Lead $1,971.00
    • Nickel $23,158.00
    • Tin $26,800.00
    • Zinc $3,333.00