Alto Metals reports further high-grade gold drilling results from Sandstone project

by Leena Thomas
Image: Alto Metals Limited

Alto Metals Limited (ASX: AME) has announced high-grade assay results of up to 29 metres at 3.5 g/t gold from its latest phase of RC drilling targeting high-grade gold mineralisation beneath the Lord Nelson open pit and at the new Orion gold lode discovery within the Company’s flagship Sandstone Gold Project in WA.

The company said that infill drilling at the Orion Lode confirmed excellent continuity of the shallow high-grade gold mineralisation from oxide and transitional zone. Significant intercepts included 29m @ 3.5g/t gold from 49m, incl.7m @ 7.9g/t gold from 53m; 13m @ 3.3g/t gold from 83m, incl.2m @ 8.8g/t gold from 85m; 16m @ 3.1g/t gold from 105m, incl.2m @ 7.7g/t gold from 118m; and 32m @ 1.4g/t gold from 51m.

AME said that the step out drilling returned 7m @ 2.7g/t gold from 155m, including 2m @ 6.3g/t gold from 159m and has now defined the Orion Lode over 300m and remains open.

The company reported that step-out drilling beneath the Orion Lode and Lord Nelson pit extended the high grade mineralisation down dip and down plunge, including 32m @ 2.5g/t gold from 223m, incl. 4m @ 12.3g/t gold from 245m; 7m @ 4.6g/t gold from 209m, incl. 2m @ 11.6g/t gold from 210m; and 8m @ 2.5g/t gold from 190m, incl. 2m @ 7.8g/t gold from 194m.

Alto Metals said that several high-grade intersections remain outside the current resource, awaiting close spaced drilling. The company noted that the drilling confirms Lord Nelson is a multiple lode high grade gold system.

AME said that multiple drill-ready targets are planned to be tested for repeat lodes, with an initial 5,000m, of a planned 30,000m RC drill program due to commence this week.

Alto had recently secured commitments to raise$5.5m in a Placement. The company said that it intends to aggressively advance exploration along the entire 3km Lords’ Corridor and drill test a number of regional targets within the +800km2 Sandstone Gold Project.

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 owned by Alto include Lord Nelson, Lord Henry, Havilah, Bull Oak, Vanguard, Ladybird, Maninga Marley, Sandstone North, Oroya, Tiger Moth, Musketeer, Piper, and Bulchina.

The Orion Lode is located south of the Lord Nelson pit within the Lords’ corridor; which extends over 3 kilometers in a NNW/SSE direction, with the Lord Nelson deposit at the north and the Lord Henry deposit to the south.

The Orion Lode strikes NNW-SSE and dips moderately to the west. The geology and mineralisation observed at the Orion Lode are identical to the mined oxide portion of the Lord Nelson deposit.

Drilling at Sandstone project

The company had recently completed RC drilling targeting high grade gold mineralisation beneath the Lord Nelson open pit and at the new Orion gold lode discovery, located 200m south of Lord Nelson, within the Company’s flagship Sandstone Gold Project.

The 4m composite Photon assay results were previously announced on 27 July 2020, 29 July 2020, 18 August 2020, and 31 August respectively.

AME said that final 1m fire assays have now been received from the recently completed 5,562m RC drilling program. This includes infill and step out drilling at the new Orion Lode and infill drilling beneath the Lord Nelson pit.

The company said that the current drilling program infilled the shallow portion of the Orion Lode on 40m by 20m spacing and extended the lode up to 300m along strike and 200m down dip.

High-grade results from new Orion lode

Alto Metals announced that the final 1m fire assays from the RC drilling program further defines the new Orion Lode, located 100m south of Lord Nelson open pit.

Orion Lode is considered a repeat lode of the Lord Nelson deposit. The Orion Lode is the first new gold lode discovered, and Alto’s geological modelling indicated the potential for further Lord Nelson style repeat lodes within the 3km Lords’ corridor.

The company said that mineralisation was intersected in extensional drilling (up to 80m spacing) confirming the Orion lode remains widely open along strike, down dip and down plunge. AME said that the RC drill results show the presence of high-grade gold mineralisation within a much broader mineralisation envelope.

Infill drilling

The company announced that one-metre fire assay results from 20m to 40m spaced infill drilling, suggest excellent continuity of the shallow high-grade gold mineralisation from oxide and transitional zone, with numerous significant +40 grams/ton metres (“gtm”) gold intercepts.

Highlights include 29m @ 3.5g/t gold (102gtm) from 49m, including 7m @ 7.9g/t gold from 53m (SRC191); 13m @ 3.3g/t gold (43gtm) from 83m, including 2m @ 8.8g/t gold from 85m (SRC205); 16m @ 3.1g/t gold (50gtm) from 105m, including 2m @ 7.7g/t gold from 118m (SRC192); and 32m @ 1.4g/t gold (45gtm) from 51m (SRC183).

Step out drill hole SRC197

Alto said that its recently announced 80m step out drill hole returned 7m @ 2.7g/t gold from 155m, including 2m @ 6.3g/t gold from 159m (SRC197) and has now defined the Orion Lode over 300m and extended the overall mineralised footprint of Lord Nelson to over 1,000m.

High-grade results from Primary zone beneath the Lord Nelson Pit

AME announced that the drilling beneath the Lord Nelson pit has extended high-grade mineralisation down dip and down plunge.

The company said that one-metre fire assay results from 40m to 80m step-out drilling, targeting the primary high-grade gold zone beneath the Lord Nelson pit, include multiple +10g/t gold intercepts extending the high-grade gold mineralisation down-dip and down-plunge with excellent continuity in primary zone. AME said that these results are outside of the current Mineral Resource.

Highlights include 32m @ 2.5g/t gold from 223m, including 4m @ 12.3g/t gold from 245m (SRC184); 7m @ 4.6g/t gold from 209m, including 2m @ 11.6g/t gold from 210m (SRC209); and 8m @ 2.5g/t gold from 190m, including 2m @ 7.8g/t gold from 194m (SRC214).

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 it expects to commence a 5,000m wide spaced RC drilling program at Lord Nelson and along the Lords’ Corridor this week. This program intends to test extensions of high-grade mineralisation of the new Orion Lode; primary high-grade gold mineralisation beneath the Lord Nelson pit and Orion Lode, and potential repeat gold lodes along the next 1km of the Lords’ corridor.

Alto said that an additional 25,000m of RC drilling is planned for the remainder of 2020 and early 2021, to include exploration drilling to test the additional near-term targets along the +3km Lords’ corridor, and exploration drilling at regional targets including Vanguard, Indomitable, and Chance.

Management comments

Alto’s Managing Director, Matthew Bowles said: “We continue to be highly encouraged by the results from the Orion lode, which demonstrate excellent continuity of shallow, high-grade gold mineralisation. We have only just scratched the surface of this new lode and our focus is on the down dip and strike potential of Orion, which has all the hallmarks of being part of a much bigger system.

The Orion Lode is considered to be a repeat lode of the Lord Nelson deposit and our geological modelling highlights the potential additional for Lord Nelson style repeat lodes along the Lords’ Corridor.

It is a really exciting time for Alto with our next drilling program about to commence to follow up on these latest results. The 30,000m of drilling we have planned is the biggest drill program Alto has undertaken in a number of years and we are keenly anticipating ongoing results.”