Since acquiring the project in 2016, Alto has compiled and reviewed a large database ahead of a series of focused exploration and drilling campaigns.
The Sandstone North prospect includes the historic Oroya Extended workings where small pits and shafts run north-south over a strike length of 300 metres.
RC drilling by previous explorers has confirmed high-grade gold mineralisation exists at the prospect, with results including:
8 metres at 4.9 g/t gold from 82 metres
3 metres at 32.1 g/t from 94 metres
9 metres at 8 g/t from 29 metres
2 metres at 24.2 g/t from 34 metres
11 metres at 6.2 g/t from 34 metres
Alto executive director Dermot Ryan said: “Sandstone North is somewhat different from other known gold deposits at Sandstone, in that the gold mineralisation is hosted in a sulphidic quartz vein system within sheared pyritic sediments, adjacent to an ultramafic unit.
“The high-grade nature of the mineralisation and the underexplored, under-drilled nature of the deposit makes it an attractive exploration target for 2019.”
The company’s goal is the delineation of a 1 million-ounce JORC 2012 mineral resource that could become the basis for a re-establishment of standalone oxide and primary gold mining and milling operations.
In 2018 the company carried out drilling to test for extensions to mineralisation along strike at the northern and southern ends of the mineralisation.
A total of eight drill holes were completed for 783 metres demonstrating that the mineralisation is open to the north and south of the main zone.
The company aims to raise up to $2.38 million in a 1 for 3 non-renounceable rights issue with the majority of funds to be allocated to ongoing exploration including at the Sandstone Gold Project in the first half of 2019 and to increase the mineral resource inventory.
Shares in the pro-rata entitlement offer to eligible shareholders are priced at 3.6 cents each.
The company also confirmed shallow high-grade gold mineralisation exists at the Ladybird prospect within the Sandstone project.
Best results included:
5 metres at 29.4 g/t from 8 metres;
4 metres at 7.3 g/t from 42 metres; and
5 metres at 5.6 g/t from 0 metres
Further drilling is planned for quarter 1 to test along strike, down dip and down plunge extensions to the mineralised zone at Sandstone North.
- Jessica Cummins