Mineral explorer Alt Resources (ASX: ARS) has received the first assays from its drilling program at Bottle Creek in Western Australia, achieving high-grade gold intercepts at the Emu deposit.
The Jindabyne-headquartered explorer achieved grades, of up to 21.8 grams per tonne gold, from 750 metres of assays.
Alt has been drilling at the WA deposit 100 km north east of Menzies since 12 March, completing 3000m of a 7000m reverse-circulation drilling program.
The New South Wales company said it was pleased with the initial results from the drilling program — the first modern exploration undertaken at the Mt Ida gold belt site since 1988.
Ninety thousand ounces of gold were mined at the historic Bottle Creek gold mine site between 1988 and 1989, from two open pits.
However, a 9.8km strike was left unmined, and contains the Emu, Southwark and XXXX deposits.
Historic drilling of the strike was spaced 100m apart, with Alt this month spacing its Emu deposit intersects at 25m and 50m junctures.
“Initial assay results from the first 10 holes drilled, have returned grades up to 21.8 g/t Au1, alongside broad, consistently graded zones such as 23m at 3.99g/t gold,” the company said in announcement to the Australian market today.
The company said most of its drilling targeted oxide mineralisation and reached no deeper than 80m vertically below the ground’s surface.
Among 11 intercepts Alt viewed as significant, was a 20m stretch containing 4.1g/t gold, including a 7m section at 7.8 g/t. Another intersect of 21m contained 4.0 g/t gold. A third assay had 21m of 3.1 g/t gold, with a 9m stretch home to 5.4 g/t gold.
Alt chief James Anderson shared the company’s pleasure at the results, “It is fantastic to get these results coming out of Bottle Creek after the many months of preparation.”
“I think our shareholders will be impressed especially when all your initial drillholes from an RC program intercept gold grades and widths like this. Bottle Creek is a quality project and we are confident it will continue to provide similar results as we progress the drilling programs over the next few months”, he said in the statement.
The company said its drilling had provided further confirmation of the historical data it had compiled and reviewed over the past six months.
Alt has set its sights on producing a JORC-compliant resource statement for Bottle Creek after completing its current drilling programs.
The company, whose market capitalisation is now sitting at $7.2 million on today’s news, is waiting on 1000m of assays to be returned from ALS Laboratories in Kalgoorlie.
Alt plans to deliver an additional 1000m of samples to the geochemist lab this week.
Alt’s last capital raising effort added $484,000 to its coffers by 13 December, with 9.68 million shares issued at 5c a pop.
Alt securities were resting at 0.8c or 15.7% up to 5.9c by late afternoon trade on the Australian Securities Exchange after achieving intraday highs of 8c.