Alt Resources reveals high-grade gold at Boags South
Evaluation of historic drilling data has led to Alt Resources (ASX: ARS)identifying high-grade gold at the Boags South deposit, which is part of the company’s Bottle Creek lease and the wider Mt Ida gold project in Western Australia.
The intersections were along strike from the Boags open pit at the southern end of the Bottle Creek mining lease.
Notable intersections identified in the review were 7m at 9.03 grams per tonne gold, including 2m at 28.2g/t gold from 58m; 6m at 8.75g/t gold from 32m; and 14m at 2.81g/t gold from 20m.
The shallow intersections were observed to be similar to the Emu and Southwark deposits and consistent with Bottle Creek mineralisation.
Alt has identified about 1,200m of mineralised strike at Boags South and anticipates drilling at the site will add to Mt Ida’s global resource of 6.8 million tonnes at 1.85g/t gold for 406,000 ounces gold and 3.78Moz silver.
Alt plans to begin drilling at Boags South in the third quarter of this year.
Making up a large component of the Mt Ida estimate is the Bottle Creek resource of 5.5Mt at 1.72g/t gold for 309,000oz.
Alt is focused on brining the historic Bottle Creek gold mine back into production within two years.
Prior to the mine’s closure in 1989, it operated for 18-months generating 93,000oz gold from two open pits VB and Boags, with average grades of 3.26g/t and 2.65g/t, respectively.
At Bottle Creek, Alt is initially targeting an eight-year operation by processing 500,000tpa.
As part of its plan to advance Bottle Creek, during the March quarter, Alt undertook metallurgical testing of the deposit as well as the Emu and Southwark ore zones.
Other studies are underway including pit optimisation, preliminary processing plant designs and costing parameters, with Alt aiming to feed the results into a feasibility study.
Share purchase plan
To fund its ambitions, Alt has launched a $1.99 million share purchase plan to eligible shareholders giving them the ability to scoop up to $15,000 worth of shares at $0.024 each.
Proceeds will be funnelled into further drilling, pit optimisation work, and development of maiden reserves for Mt Ida.
Alt has also entered a convertible note deed with Patina Resources, which will give Alt an addition $500,000, which will be put towards working capital and drilling at Bottle Creek and the wider Mt Ida project.
By early afternoon, Alt’s share price was steady at $0.022.
Article from Smallcaps (May 7, 2019)