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Alto Metals lifts Lord Nelson gold resource by 60% to 109,000 ounces at 1.9 g/t

Lord Nelson deposit contributes 33% of the total resource at Sandstone Project and is still open in all directions, with further drilling planned to determine its full potential.

Alto Metals Ltd - Alto Metals increases Lord Nelson resource by 60% to 109,000 ounces at 1.9 g/t gold
The increased mineral resource has around a $10 per ounce discovery cost.

Alto Metals Ltd (ASX:AME) has updated the independent gold resource estimate for Lord Nelson deposit and the total mineral resource estimate for the Sandstone Gold Project in Western Australia after a 3,700-metre reverse circulation (RC) drilling program in March.

The estimate from Snowden Mining Industry Consultants advises that the inferred mineral resource has increased 60% to 1.8 million tonnes at 1.9 g/t for 109,000 ounces.

This represents an increase of 840,000 tonnes for an extra 41,000 ounces.

Additional resource growth expected

Alto non-executive director Matthew Bowles said: “The Alto board, management and exploration team are extremely pleased that this latest independent mineral resource estimate for Lord Nelson has increased contained ounces by 60%.

“Our latest drilling demonstrated the continuity of mineralisation at Lord Nelson and we expect additional resource growth from the numerous high-grade intersections still outside the resource that are awaiting closer spaced drilling.”

 Results from the RC drilling are outside the current resource and include:

  • 17 metres at 3.5 g/t from 200 metres, including 4 metres at 11.6 g/t from 211 metres and 1-metre at 25.5 g/t from 214 metres;
  • 16 metres at 5.2 g/t from 240 metres, including 3 metres at 13.5 g/t from 240 metres; and
  • 5 metres at 3.1 g/t from 232 metres.

Mineral resources 3D modelling at Lord Nelson showing existing drilling (Blue lines), existing open pit, and mineral resource lower boundary (yellow dashed line) and blocks below the yellow line are unclassified category.

Sandstone Gold Project

The total indicated and inferred mineral resource estimate for the Sandstone Gold Project has increased to 6.2 million tonnes at 1.7 g/t for 331,000 ounces.

Bowles said the mineral resources occupied a small portion of the company’s landholding and that there was significant potential to further increase current resources.

He said: “We see so much potential at Sandstone, not only through step-out drilling along the 3-kilometre corridor south of Lord Nelson but over our entire more than 800 square kilometre landholding which covers the vast majority of the Sandstone Greenstone Belt.

“All of which remains significant underexplored below 100 metres depth.”

The mineral resource may be considered amenable to open cut mining and is reported at lower cut-off grade of 0.8 g/t gold, with the final cut-off determination dependent on the scale of any potential future operation and the prevailing gold price.

Location of Sandstone Gold Project within the East Murchison Goldfield, WA.

Resource potential

The inferred mineral resource has been limited to 80 metres below the current mined pit, with all material below this remaining unclassified.

Alto notes there is substantial gold mineralisation outside the inferred resource boundary which has not been included in the resource due to lack of drilling density, some of which may be expected to convert to resources with further drilling.

Snowden estimates that there is potential for economic extraction in the areas classified as inferred resources.

Quick facts: Alto Metals Ltd

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Market: ASX
Market Cap: $19.95 m

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