Alto Metals confirms increase to shallow resources at Sandstone gold project

Alto Metals (ASX: AME) has announced a significant update to the mineral resource estimate at its wholly-owned Sandstone gold project in Western Australia.

The new figures outline an optimised and pit-constrained total inferred and indicated resource of 17.6 million tonnes grading 1.5 grams per tonne gold for 832,000 ounces, within a $2,500 per ounce optimised pit-shell reported at a 0.5g/t gold cut-off grade.

It takes the unconstrained mineral resource estimate for Sandstone to 23.5Mt grading 1.4g/t gold for 1.05 million ounces of contained gold, using the same cut-off.

The pit optimisations are believed to demonstrate the robust and shallow nature of the resource and capture approximately 80% of the total unconstrained estimate.

Approximately 214,000oz which sits outside the optimised and pit-shell constrained resource highlights the potential for additional in-pit growth through refinement of optimisation parameters and an improved gold price.

Shallow resource

Over 70% of the shallow Sandstone resource lies less than 100 metres from surface and 90% is defined within the top 150m from surface.

The vast majority of the project area — which spans more than 740 square kilometres — is virtually untested below 100m.

Over 27% of the total resource within the optimised pit shells is in the indicated category.

The mineralisation remains open along strike and at depth, and Alto said there is potential to continue growing the resource inventory with further drilling.

Indomitable Camp update

The new estimate incorporates an update to the Indomitable Camp target (including Indomitable East and Musketeer), an update to Lord Nelson and a maiden mineral resource estimate for Bull Oak.

Indomitable Camp has almost tripled in size to 5.4Mt at 1.2g/t gold for 210,000oz, with mineralisation currently defined along a 3km long northwest-southeast trending gold corridor.

Significant potential for shallow and deeper high-grade resource expansion remains, with Alto’s exploration strategy continuing to focus on the Alpha Domain as a priority.

Growing the inventory

Alto managing director Matthew Bowles said the update provides “strong encouragement” that the company can continue to grow the Sandstone resource inventory and develop a standalone gold operation.

“Our systematic approach to exploration is continuing to deliver and we further drilling will grow the resource and increase the confidence of additional inferred resources to indicated,” he said.

“We are focused on adding further ounces and we see plenty of avenues to continue growing the Sandstone resource with numerous priority targets and significant potential at depth which remains relatively untested.”