Ongoing exploration at Alt Resources’ (ASX: ARS) Mt Ida project in Western Australia has uncovered high-grade gold grading up to 34.2 grams per tonne at the Tim’s Find prospect.
About 3,000m has been drilled at Tim’s Find, with assays now returned for the first 20 holes.
Highlight assays from Tim’s Find were 4m at 17.8g/t gold, including 2m at 34.2g/t gold from 5m; 9m at 7g/t gold, including 21.5g/t gold from 14m; and 5m at 12.6g/t gold, including 2m at 28.5g/t gold from 26m.
To-date, 102 reverse circulation holes have been drilled at the wider Mt Ida project including Shepherds Bush and Quinns, with the bulk (72 holes) carried out at Tim’s Find.
The program is part of a 5,200m RC drilling campaign, which was designed to confirm the grade and continuity of mineralisation at Tim’s Find, with the aim of firming up the deposit’s mining potential.
Additionally, Alt anticipates it will establish strike extensions in the current program, which is targeting strike potential about 500m south of the resource.
However, Alt noted drilling at present is too broadly spaced to establish a resource for Tim’s Find.
Once drilling at Tim’s Find has been completed, Alt will transport the rig to Quinn’s to target the Forrest Belle and Boudie Rat ore shoot extensions.
‘Compellingly cheap’ multi-million-ounce opportunity
The wider Mt Ida project has a global resource of 6.8Mt at 1.82g/t gold for 406,000 ounces of contained gold and 3.78Moz silver.
In May, Orior Capital analyst Simon Francis released a report on Alt that refers to the company as a “compellingly cheap” value proposition due to its multi-million ounce opportunity.
He gave Alt an $0.08 per share valuation, comparing the company’s resource to other WA goldfields explorers.
The wider Mt Ida project was previously under fragmented ownership and Alt has amalgamated the tenements and now owns 360sq km of ground in the region including six mining leases.
Another key point that makes the project appealing, according to Mr Francis, is the project’s existing infrastructure.
Mr Francis estimates it could cost Alt as little as $20 million to establish a carbon-in-pulp 500,000t per annum mining operation at Mt Ida.
Investors reacted positively to Alt’s news, with the company’s share price soaring 26.67% to reach $0.019 at midday.