After defining an exploration target for its Bull Oak gold deposit in Western Australia, Alto Metals (ASX:AME) is preparing for the next phase of reverse circulation drilling.
Alto, which has a market capitalisation of $24.53 million, says Bull Oak’s exploration target measures 10.9 million tonnes at up to 1.3 grams per tonne (g/t) gold, potentially representing 360,000 of contained ounces.
The target includes Bull Oak’s existing resource estimate, which stands at 1.9 million tonnes at 1.1g/t gold for 65,000 ounces.
The exploration target has also incorporated recent drilling results, and was generated using several methodologies, including interpreting drillhole data and a mineralisation model constructed using a vein system.
Managing Director Matthew Bowles says the company is fortunate to be able to calculate an exploration target, which shows the upside potential of the intrusion related deposit.
“The exploration target uses parameters from the recent Bull Oak MRE estimate and outlines extensions of that deposit based on the recent drilling as well as geological and structural interpretation,” he says.
“We believe the exploration target of 250,000-360,000 ounces at 1-1.3g/t gold has been calculated on a conservative, but justifiable, basis and is well supported by both drill intercepts and the continuity of mineralisation observed throughout the deposit.
“Outside of the exploration target, where drilling is currently limited, we see additional tonnage and grade potential.”
The company is currently preparing for a 5,000m reverse circulation drilling program to test extensions of mineralisation at Bull Oak and confirm the exploration target.
Based on the outcome of the proposed drilling program, Alto plans to update the resource estimate in the second half of this year.
Further, given the amount of historical shallow drilling and drill spacing at Bull Oak, Alto expects this program to enable a portion of the current inferred mineral resource to be upgraded to an indicated category.
The Sandstone Gold Project, which is home to the Bull Oak deposit, currently hosts an open-pit gold resource of 17.6 million tonnes at 1.5g/t gold for 832,000 ounces.
Write to Aaliyah Rogan at Mining.com.au
Images: Alto Metals
