Alt Resources (ASX: ARS) has experienced more success while drilling at its Mt Ida gold project, with latest assays extending known mineralisation at the Tim’s Find deposit and unearthing up to 82.6 grams per tonne gold.
Notable results from drilling at Tim’s Find were 16m at 6.08g/t gold, including 1m at 82.6g/t gold from 5m; 3m at 13.8g/t gold from 8m; and 6m at 5.9g/t gold from 16m, including 1m at 54g/t gold from 35m.
Drilling at Tim’s Find was part of a wider 43-hole reverse circulation campaign that totalled 2,140m across Mt Ida.
During September, drilling was undertaken at Tim’s Find, which confirmed mineralisation was open 150m to the north and 250m to the south of the existing resource.
Toll treatment strategy for Tim’s Find
Today’s high-grade gold results underpin Alt’s strategy to fast-track Tim’s Find and build a small-scale mining operation at the deposit.
Alt chief executive officer James Anderson said the company’s planned operation for Tim’s Find was “reasonably uncomplicated” with the deposit already situated on a granted mining lease and mineralisation at surface and reasonable grades.
He added it was a “logical” step to advance Tim’s Find, which has the potential to generate free cashflow in the current high gold price environment, which would provide non-dilutive working capital for the company.
Previous results from Tim’s Find have included 10m at 6.32g/t gold from 14m, comprising a 2m interval grading 21.53g/t gold from 20m.
Working capital facility
To shore up requisite capital to advance Tim’s Find, Alt has inked a mining services agreement with Blue Cap Mining Pty Ltd.
Under the agreement, Blue Cap will provide mining, transport, processing, drill and blast services.
The mining contractor will also provide Alt with a $3 million working capital facility to help fund development of the initial operation.
Investors reacted favourably to Alt’s drill results from Tim’s Find, spurring the company’s share price up 10% to trade at $0.022 mid-morning.