Alto Metals Limited (ASX: AME) has announced high-grade assay results of up to 20 metres at 2.3 g/t from the first two infill RC drill holes of the initial 1,500m drill program targeting mineralisation south of the Lord Nelson open pit within the Company’s Sandstone Gold Project in WA.
The company reported that the results from the first two holes (SRC182 and SRC183) include 20m @ 2.3 g/t gold from 64m (SRC183) within a broader zone of 36m @ 1.6 g/t gold from 48m; and 4m @ 4.1 g/t gold from 112m (SRC182).
AME said that the RC drilling targeting shallow mineralisation (~50m vertical depth) has confirmed a new repeat lode 200m to the south of the Lord Nelson pit.
It may be noted that these latest infill holes followed up on the recent shallow mineralisation results, which included 23m @ 3.8 g/t gold from 106m (SRC168) including 6m @ 4.6 g/t gold from 106m, and 10m @ 4.5 g/t gold from 116m; and 10m @ 4.1 g/t gold from 34m (SRC169) including 2m @ 12.8 g/t gold from 36m.
AME said that the recent high-grade gold intersections in oxide, transitional and primary zones have extended the gold mineralisation footprint at Lord Nelson to over 870m.
The company announced that a further 8,500m of the planned first stage RC drilling is planned to re-commence in mid-August to test additional repeat gold lode targets along the Lords’ corridor and multiple other targets.
AME said that the RC drilling targeting primary gold mineralisation beneath the open-pit has been completed and assay results are pending.
Alto reported that the results to date continue to highlight the likelihood of a large-scale gold mineralisation system open along strike, down-dip and down-plunge within the regional Edale Shear zone.
Sandstone project
Alto’s Sandstone Project covers ~80% (800km2) of the historic Archaean Sandstone Goldfield 600km north of Perth in the East Murchison Mineral Field of Western Australia and is centred on the small township of Sandstone.
The numerous former open pits, prospects, and gold occurrences now owned by Alto include Lord Nelson, Lord Henry, Havilah, Bull Oak, Vanguard, Ladybird, Maninga Marley, Sandstone North, Oroya, Tiger Moth, Musketeer, Piper, and Bulchina.
Alto’s current total global Indicated and Inferred (JORC 2012) Mineral Resource Estimate for the Sandstone Project is of 6.2Mt @ 1.7g/t gold for 330,000oz, which remains open along strike and at depth.
The Lord Nelson deposit occurs along the north-south trending Trafalgar shear zone. The Lord Nelson deposit was previously mined by Troy Resources NL down to 90m depth and produced 207koz at 4.6 g/t gold.
Drill program at Nelson
The company had commenced an initial 1,500m drill program, targeting the shallow gold mineralisation south of the Lord Nelson pit and primary mineralisation beneath the pit, within the Company’s Sandstone Gold Project.
Previous results
The company said that the infill drill holes SRC182 and SRC183 followed up on the previous results announced on 2 April 2020, including 23m @ 3.8 g/t gold from 106m (SRC168) including 6m @ 4.6 g/t gold from 106m, and 10m @ 4.5 g/t gold from 116m; and 10m @ 4.1 g/t gold from 34m (SRC169) including 2m @ 12.8 g/t gold from 36m.
The company said that RC holes SRC184- SRC188 are following up on the recent results announced on 22 April 2020, which demonstrated the continuity of thick zones of high-grade gold mineralisation at depth.
Highlights included 17m @ 3.5 g/t gold from 200m (SRC175) including 4m @ 11.6 g/t gold from 211m and 1m @ 25.5 g/t gold from 214m; and 16m @ 5.2 g/t gold from 240m (SRC176) including 3m @ 13.5 g/t gold from 240m.
Results reported from 2 RC holes
AME said that four-metre composite samples assay were received for the first two RC drill holes, SRC182 and SRC183, targeting shallow gold mineralisation south of the historic Lord Nelson pit have been received, with gold mineralisation intersected in both drill holes.
Results pending from 5 RC holes
Alto announced that further assays are pending for the remaining 5 RC holes (SRC184- SRC188) targeting the new zone of primary mineralisation discovered beneath the existing pit and will be released when available.
High-grade assay results
Alto reported that high-grade assays were received from drill holes SRC182 and SRC183.
Highlights include 36m @ 1.6 g/t gold from 48m (SRC183) incl. 20m @ 2.3 g/t gold from 64m; and 4m @ 4.1 g/t gold from 112m (SRC182).
Results indicate significant potential
The company announced that the results of the recent drilling program support the Company’s view that the mineralisation style and geological setting of the Lord Nelson deposit and the newly discovered mineralisation below the open pit are analogous to many other Yilgarn orogenic gold deposits that extend to great depth.
AME said that it believes that the significant potential of this area has not yet been realised and the prospect remains a priority area and focus of the Company’s future drilling programs.
Entitlement offer
Habrok (Alto) Pty Ltd had made an application to the Takeovers Panel seeking a declaration of unacceptable circumstances in relation to certain affairs of Alto, including the Entitlement Offer. The company said that the hostile takeover offer by Habrok (Alto) Mining Pty Ltd at $0.066, remains open.
The company announced that 1 for 4 Entitlements Issue at $0.07 to raise $5.1m with over $2.5m has already been received in accelerated subscriptions and commitments, whose completion is subject to Takeovers Panel ruling. These funds will allow the Company to focus on an exploration drilling campaign at Sandstone.
Next steps
Alto announced that it is planning further RC drilling at Lord Nelson’s Southern Extension Corridor and depth extension for later in 2020.
The company said that further RC drill programs are planned to commence upon settlement of the institutional portion of the recently announced Entitlement Offer.
AME said further work would include planning infill and extension drilling both along strike and at depth at Lord Nelson; commencing testing of additional repeat lode targets in the Lords’ Camp area; follow up drilling at other prospects including Bulchina South and Vanguard and Indomitable Camps; and multiple other regional targets within the 800km2 Sandstone Gold Project area.
Management comments
Alto’s Managing Director, Matthew Bowles said: “These latest results from RC drilling 200m south of the Lord Nelson pit, confirm a new repeat lode of shallow gold mineralisation, up to 36 metres thick, which remains open along strike and down plunge.
The mineralisation style of this new lode is the same as that of the Lord Nelson deposit and highlights the potential for a series of repeat lodes along the structural corridor that have never been systematically tested.
We see so much potential at Lord Nelson with high grade gold intersections in oxide, transitional and primary zones now extending the gold mineralisation footprint to over 870m. These results continue to highlight the presence of a large scale mineralised gold system, within the regional Edale Shear zone.”