A first-stage reverse circulation drilling program by Alt Resources (ASX: ARS) at its Mt Ida gold project in WA’s northern goldfields has encountered broad zones of mineralisation, including a shallow 80-metre intercept, at two key target areas.
Drilling was completed last month over 18 holes for 5,500m at the prospective Shepherds Bush and Spotted Dog targets at Mt Ida South.
Ten holes at Shepherds Bush confirmed historical exploration results, intercepting broad zones of low-level gold in a series of ultramafic and mafic schists with sulphidic shales and cherts.
Mineralisation was spread across a 400m strike length, extending the historical mineralised zone by 200m to the north.
All holes intercepted gold to varying degrees, with results including 21m at 1.92g/t gold from 36m; 25m at 1.1g/t gold from surface; and 12m at 1.93g/t gold from 12m.
Alt chief executive officer James Anderson said drillhole SBRC006 showed “significant potential” over the others, returning 80m at 1.49g/t gold and ending in mineralisation in massive sulphides.
“We are very encouraged by the wide zones of mineralisation intersected at Shepherds Bush with the level of hematite alteration, brecciation and silicification along strike suggesting more significant gold mineralisation may be present in the area,” he said.
“Quite possibly, we may be on the edge of larger gold system.”
The company has also selectively sampled holes for base metals and is waiting on the assay results.
At Spotted Dog North, Alt drilled seven RC holes to follow-up another historical intercept of 5m at 2.49g/t gold.
The small program produced encouraging results with intersections showing the mineralisation has a higher tenor but is locally patchy, compared to Shepherds Bush which displays very wide zones of gold.
Shepherds Bush is now being prioritised as a fast-track target and has been earmarked for its potential to quickly add resource ounces to the Mt Ida project.
Mr Anderson said the company plans to undertake comprehensive surface geological mapping, Heli-EM and a high-resolution magnetic survey to better understand geological constraints prior to planning and implementing further drilling programs.
Alt confirmed yesterday that Mt Ida’s ongoing development program will be funded by an oversubscribed share placement demonstrating “exceptional support” from investors.
An aggregate 160 million fully paid ordinary shares in the capital of Alt will be issued under the placement at $0.025 per share.
Funds raised will be used for resource and exploration drilling, the development of a maiden ore reserve statement, completion of a feasibility study, vendor payments and for general working capital purposes.
In July, Alt released a positive scoping study for Mt Ida based on the potential future development of a standalone gold operation incorporating open pit mining operations and a gold treatment plant to be located at nearby Bottle Creek.
Gold at all-time highs
Alt is fast-tracking Mt Ida to take advantage of the current climate for gold, with the precious metal’s price hitting all time highs and trading at A$2,180 per ounce this morning.
Martin Place Securities executive chairman Barry Dawes anticipates the gold sector is heading into a decade-long bull run that may cause the gold price to reach A$10,000/oz in the next 10 years.
Whether or not the bull run that analysts predict unfolds, at current prices Alt is looking to lock-in healthy operating margins at Mt Ida with a recent scoping study estimating the project will attract all in sustaining costs between A$1,100/oz and A$1,200/oz.