Paupong Project

Prospects

The Company’s Paupong Project represents a Major New Intrusion-Related (IRG) system discovery in the south eastern Lachlan Orogen of NSW. The intercepts of high grade Au-Cu-Ag shown in drilling results provides continuing evidence for a large polymetallic IRG style mineralisation.

The Paupong prospects lies within a N-NE trending belt of Ordovician Adaminaby Group sediments. The area has been subject to numerous orogenic and magmatic events, with crustal scale fault systems locally telescoping the emplacement of numerous (up to 15) porphyritic Intrusions.

These are broadly folded and metamorphosed between the Silurian Kosciuszko and Berridale Batholiths.  Associated with these, multiple phases of NE to ENE-trending quartz ± sulphide veins outcrop up to 200-300m along strike, and range from cm stockwork systems to large 5-15m wide exposures. Vein-hosted Cu-Au mineralisation generally occurs within silty sandstones of the Adaminaby Group.

Prospects include The Kidman Paddock, Toms Vein, Telegraph and Windy Hill, Dons Hill, Madges and Blueys. The Company has undertaken drilling in 2015-16 with intercepts for Au,Cu, Ag, Co and Bi across the Kidman Paddock-Toms Vein area and Telegraph-Windy Hill prospects.
The Company has defined a strong pipeline of substantial exploration targets which it will test commencing in November. Drilling is underpinned by the NSW Government drill funding grant of $200,000.

Geophysics

The Company recently completed a 5,000 line kilometre high resolution aeromagnetic and radiometric survey across the Paupong Project area. Interpretation of the newly acquired detailed aeromagnetic survey data indicates the presence of a number of late stage stocks intruding to shallow depths. The interpreted stocks occur as a cluster, and appear to postdate and penetrate a larger intrusive body located at a depth of about 400m below surface.

The magnetic anomalies occur beneath zones of known quartz-sulphide and quartz stockwork veining, and associated breccia zones mapped at the Telegraph Hill prospect. This extends the Telegraph Hill zone by about 2km to the east where the expanded prospect is now renamed Windy Hill. The Company considers the younger stocks as a possible source of intrusion-related gold mineralisation at Paupong.

IP plans with mag and geoDipole Dipole IP (at right) and resistivity model (below) slices for Windy Hill at 800m RL (50-100m below surface), with mapped geology and location of the magnetic anomalies outlined in dashed white lines with M1-M5 labels. Note the strong correlation between M1 and M2 magnetic anomalies, and the very high chargeability doughnut surrounding the magnetic anomalies. The background image is aerial photography of the Windy Hill area. 3D model with mag IP and soils

3D image of the magnetic model at the left (green shell at 143 Si units) and IP model (red shells at 37 mv/V). The view in the top image is to the south-west, looking obliquely upwards towards the ground surface. The bottom image is looking directly down. These images clearly demonstrate the close relationship between the M1 and M2 magnetic anomalies and enveloping IP anomalism.

Results

Drilling at the Paupong project has confirmed the presence of a major IRG system of quartz-sulphide hydrothermal veins, and the primary vein geochemistry is consistent with an intrusive source for the mineralising fluids.

The large size of the vein system defined to date and its spatial association with multiple high level intrusions opens the possibility for discovery of economic vein and intrusion related porphyry style gold, copper and silver mineralisation.

The 2015-16 drilling success demonstrates that mineralisation is open along strike and at depth, with significant exploration potential. Drilling at the Toms’ vein has tested the structure with existing drill holes stepped out between 200-300 metres with planned drilling to intercept the vein mineralisation at depth. Surface vein sampling and drilling by Alt and JV partner GFM Exploration have shown a very strong association between gold and arsenic, copper, bismuth, tellurium and lead. Zoned Cu, Pb, Zn and As anomalies were identified over the Windy Hill magnetic and IP anomalies.

1,300 soil samples were collected during March and April 2016, over an area of ~3.2 km2 . These lines of evidence lead the Company to believe that the combined geophysical, geological and geochemical anomalies represent a series of new Intrusion-Related Gold targets at Windy Hill.

Planned Exploration

The Company is a recipient under the NSW Government New Frontiers Drilling Initiative in 2016 and has received the maximum $200,000 grant. Drilling is recommence at Paupong in November 2016 with DDH1 Drilling on site where drilling will commence at the Windy Hill prospect.

Planned exploration in 2016-17 showing areas the drilling targets at Windy Hill prospects. The Company intends to vigorously pursue the Windy Hill targets. An amended drilling permission has been approved by the NSW Government to allow drilling in the Windy Hill area.

Ground geophysical dipole-dipole IP surveys along with airborne magnetics and soil geochemical analysis have been used to target the potential source of mineralisation at Paupong.

Address
ALT Resources Limited

PO Box 1054
Jindabyne NSW 2627
Phone: 1300 66 0001
Email: info@altresources.com.au