Alt Resources (ASX: ARS) has continued with its plans to fast-track the Tim’s Find deposit within its Mt Ida and Bottle Creek project after lodging the deposit’s stage one mine plan with the Western Australian Department of Mines Industry Regulation and Safety.
Tim’s Find already lies within an existing mining lease and was granted clearing permits in mid-February in addition to approvals for the mine site and haul road.
Underpinning the proposed operation is a resource of 770,600 tonnes at 1.94 grams per tonne gold for 48,400 ounces of gold.
Within that estimate are measured and indicated resources of 535,600t at 2.11g/t gold for 36,375oz.
Advancing Tim’s Find
While awaiting the final mining approval, Alt noted it could begin clearing the mine site and haul road construction.
Meanwhile, Alt has completed mine optimisation, design, scheduling and economic evaluations for the stage one operation at Tim’s Find.
A maiden ore reserve and pre-feasibility study remain on tract for release in the current quarter and Alt aims to kick-off mining early in the September quarter.
Blue Cap mining services agreement
To shore up revenue for mine development and initial operations, Alt locked-in a binding mining services agreement with Blue Cap last month.
The deal paves the way for Blue Cap to provide mining, transport, processing, drill and blast and other associated service to Alt.
Blue Cap will also provide Alt with a $1.5 million working capital facility, which is expected to fund initial mining at Tim’s Find.
Alt has agreed to repay the facility within four months of its first drawdown, with repayments to be made from ore sales.
Net profit will be spit 34% to Blue Cap and 66% to Alt.
Meanwhile, Blue Cap retains the right to subscribe for 20 million Alt shares at $0.025 each. At its discretion, Blue Cap can take shares in lieu of cash payments against mining service agreement costs.
However, Alt has noted that Blue Cap’s capacity to begin mining at Tim’s Find is entirely dependent on its capacity to operate under current COVID-19 regulatory constraints and requirements.