Alt Resources (ASX: ARS) has identified further high-grade gold mineralisation along strike of the historic VB pit within the Bottle Creek tenements of its wider Mt Ida project in Western Australia.
The company completed 21 reverse circulation holes for 1,040m about 500m up strike of the VB open pit at the VB North target.
According to Alt, this was the first area drilled during the recently completed 3,400m campaign that was undertaken across the Bottle Creek and Tim’s Find licences.
Highlight results from the mineralisation found at VB North were 15m at 4.64 grams per tonne gold from 57m, 6m at 3.76g/t gold from 66m, 12m at 2.89g/t gold from 56m and 6m at 2.43g/t gold from 29m.
Alt noted the newly identified mineralisation was in an unmined area, with the company claiming these results provide confidence in its drilling programs to enhance the project economics.
Mineralisation at VB North remains open at depth with the recent drilling program only extending 80m deep.
Another round of drilling will be carried out at VB North to target deeper extensions with this campaign due to begin next month.
Meanwhile, final assays from drilling at Tim’s Find are expected “in the coming weeks”.
Mt Ida gold project
Bottle Creek and Tim’s Find make up part of Alt’s wider Mt Ida project in WA’s eastern goldfields.
Located about 230km north of Kalgoorlie, Mt Ida comprises 360 square kilometres of tenements including several historic pits such as VB and Boags.
Combined VB and Boags produced 93,000 ounces of gold between 1988 and 1989.
Global resources at Mt Ida include 406,000oz of contained gold with an average grade of 1.85g/t. The resource also comprises 3.78Moz of silver at 21.1g/t.
Separately, Bottle Creek, which hosts VB and Boags, hosts a resource of 5.6Mt at 1.72g/t gold for 309,000oz.
A scoping study released in July this year indicated the project’s potential for development into a 500,000tpa operation.
Capital expenditure is estimated at $30 million, with the mine forecast to become cashflow positive in its first year of operation.
Projected earnings before interest tax depreciation and amortisation of $54.5 million is expected in the first three years.
Prior to market open, Alt’s shares were trading at $0.019.