Follow up drilling at Alt Resources’ (ASX: ARS) Shepherd’s Bush prospect has uncovered multiple thick zones of gold mineralisation, which is amenable to a bulk-tonnage style deposit.
Notable intercepts from the 18-hole for 1,960m program were 104m at 1 gram per tonne gold from 32m, including 22m at 2.96g/t gold, 2m at 8.34g/t gold and 5m at 9.15g/t gold.
Other highlight intercepts were 77m at 1.11g/t gold from 13m, including 12m at 3.6g/t gold and 2m at 14.75g/t gold; and 69m at 1.02g/t gold from 55m, including 16m at 1.5g/t gold.
Including this latest drilling campaign, Alt has drilled 3,100m to-date at the prospect, with exploration earlier in the year unearthing 80m at 1.49g/t gold from 8m.
All results will underpin a maiden inferred resource for Shepherd’s Bush, which Alt plans to release in the current quarter.
Mt Ida gold project
Shepherd’s Bush forms part of Alt’s wider Mt Ida gold project, which is 90km west of Leonora in Western Australia.
The maiden resource for the prospect will be unveiled along with an updated global resource for the entire project including upgrades to Tim’s Find and VB North deposits.
Currently, global resources at Mt Ida total 6.8 million tonnes at 1.9g/t gold for 406,000 ounces of gold and 3.78Moz of silver.
Alt’s strategy is to fast-track Mt Ida into small scale production, with the Tim’s Find deposit the initial target.
On its own, Tim’s Find has an indicated resource of 360,000t at 2.6g/t gold for 30,100oz.
As part of this plan, Alt inked a non-binding term-sheet with Blue Cap Mining Pty Ltd in October last year.
Under the deal, Blue Cap will provide Alt with a $3 million working capital facility to assist with developing the initial operation.
Blue Cap will also provide mining, transport, processing, drill and blast and other associated services to Alt, which will be repaid from Alt’s gold sales.
“In the current high gold price environment, developing Tim’s Find into a small-scale mining operation with the potential to generate free cash is a logical step for Alt and in line with the corporate strategy to become a gold producer and provide non-dilutive working capital for the company,” Alt chief executive officer James Anderson explained.
“The planned mining operation is reasonably uncomplicated with Tim’s Find being located on a granted mining lease, the ore is oxide and at surface in a planned shallow open pit environment with a reasonable grade,” he added.