Gold explorer Alt Resources (ASX: ARS) has grown its already large Mt Ida tenement holding with the acquisition of the adjacent privately-owned White Eagle project.
The company has secured 100% of tenement E29/991 from Bruce Legendre, which consolidates Alt’s Mt Ida project at the southern end.
As part of the acquisition, Mr Legendre will be issued 1 million Alt shares at $0.02 each and a further 1 million options with an exercise price of $0.026 and expiry date of two years from issue.
Additionally, Mr Legendre will receive a 1% gross royalty on any mineral production from the tenement.
Rationale behind acquisition
According to Alt, Mr Legendre is a well-known prospector in the region and the tenement is considered prospective for shear-hosted gold.
Previous exploration has been minimal and included surface geochemistry and rock chip sampling with limited drilling.
Alt noted the tenement acquisition strengthens its Mt Ida landholding in the region.
Moving forward, Alt will review historical data it has collected and will provide an update on its exploration plans in the coming year.
Wider Mt Ida project
In an update earlier this week, Alt said it was planning to upgrade the global Mt Ida resource in the next quarter.
Additional drilling at the VB North target was recently completed with results to be included in the updated resource.
Drilling at the project has now moved to the Shepherds Bush target which is expanding on previous drilling that generated “encouraging” results of 80m at 1.49 grams per tonne gold from 8m.
The 16-hole program at Shepherds Bush is due to finish by the end of the month with results from this target to also be included in an updated resource.
Overall, Mt Ida’s resource currently comprises 406,000 ounces of contained gold and 3.78Moz of silver.
Alt has a fast-track to production strategy with small scale mining planned to start at the Tim’s Find deposit to generate early cashflow and accelerate exploration of other targets across the project.
By mid-afternoon trade, shares in Alt were steady at $0.017.