Alto Metals Ltd (ASX:AME) has more than doubled after results of up to 20 metres at 2.3 g/t gold from 64 metres confirmed a thick zone of shallow gold mineralisation at the Sandstone Gold Project in WA.
First results have been received from an initial 1,500-metre infill drilling program targeting mineralisation south of the Lord Nelson open pit.
The 20-metre intersection was within a broader zone of 36 metres at 1.6 g/t from 48 metres with another strong result being 4 metres at 4.1 g/t from 112 metres (SRC182).
Shares up 112%
Shares have been as much as 112% higher to 15 cents intra-day, a new high of 7.5 years.
The results of the recent drilling program support the company’s view that the mineralisation style and geological setting of the Lord Nelson deposit and the newly discovered mineralisation below the open pit are analogous to many other Yilgarn orogenic gold deposits that extend to great depth.
Further assays are pending for the remaining five RC holes targeting the new zone of primary mineralisation discovered beneath the existing pit.
“Potential series of repeat lodes”
Managing director Matthew Bowles said: “These latest results from RC drilling 200 metres south of the Lord Nelson pit, confirm a new repeat lode of shallow gold mineralisation, up to 36 metres thick, which remains open along strike and down plunge.
“The mineralisation style of this new lode is the same as that of the Lord Nelson deposit and highlights the potential for a series of repeat lodes along the structural corridor that have never been systematically tested.”
“We see so much potential at Lord Nelson with high-grade gold intersections in oxide, transitional and primary zones now extending the gold mineralisation footprint to over 870 metres.
“These results continue to highlight the presence of a large scale mineralised gold system, within the regional Edale Shear zone.”
Section showing the thick 36-metre zone of shallow gold mineralisation.
Drilling to recommence in August
The company believes that the significant potential of this area has not yet been realised and the prospect remains a priority area and focus of the future drilling programs.
A further 8,500 metres of the planned first stage RC drilling will begin in mid-August to test additional repeat gold lode targets along the Lords’ corridor and multiple other targets.
The planned drilling will include:
- Infill and extension drilling both along strike and at depth at Lord Nelson;
- Commence testing of additional repeat lode targets in the Lords’ Camp area;
- Follow up drilling at other prospects including Bulchina South and Vanguard and Indomitable Camps; and
- Multiple other regional targets within the 800 square kilometre Sandstone Gold Project area.
Entitlement offer
This planned drilling will commence upon settlement of the institutional portion of the recently announced entitlement offer.
The offer includes 1 for 4 entitlements issued at 7 cents per share to raise $5.1 million, with over $2.5 million already received in accelerated subscriptions and commitments, with completion subject to a takeover panel ruling.