Alto Metals Ltd (ASX:AME) has received strong support for its recent capital raising, with firm commitments from major shareholders and resource-focused investors.
This war chest will be used to drive the next major phase of aggressive exploration, drilling and resource growth at the 331,000-ounce Sandstone Gold Project in Western Australia.
Next phase of exploration
The company is now fully funded to begin the next phase of exploration and drilling, including reverse circulation (RC) drilling along the contact of the Lords granodiorite for repeat lodes along strike and at depth, and step-out drilling along the Vanguard and Indomitable trends.
The capital will also allow for first-pass drilling at numerous advanced regional targets beyond the Alpha domain.
Assays are still pending for more than 80 RC holes, including from Lord Henry, Vanguard and Indomitable, while work continues on updating the current mineral resource, which is anticipated to be completed by early next quarter.
“We are extremely pleased with the overwhelming interest in the placement from existing and new investors, including a number of resource-focused institutional investors, which is a strong endorsement of the quality of our Sandstone Gold Project,” Alto’s managing director Matthew Bowles said.
“The proceeds from this raising put Alto in a strong position as we head into 2022.
"We are well funded and can now focus on commencing our next major drilling and exploration program, following up on the exceptional results we have announced this year, while at the same time continuing to advance our mineral resource update.
"I would like to thank everyone who participated in the placement for their support, and welcome our new shareholders to the register as we look forward to our next exciting phase of growth.”
Expansion and growth
Alto is reviewing several other early greenfield and advanced brownfield targets within the vast area (900 square kilometres) of the Sandstone Gold Project, to prosecute a longer-term strategy of expansion.
Extensional RC drilling will explore further mineralisation below the Lord Nelson pit, where recent results include 45 metres at 3.2 g/t gold from 161 metres and 48 metres at 3.4 g/t from 214 metres, and test dip and plunge extensions of the new Juno discovery - 13 metres at 5.1 g/t from 162 metres.
The company also plans step-out exploration drilling to focus on testing the strike of the Vanguard and Indomitable trends, to expand its mineral portfolio.
There will be ongoing review and ranking of the multiple regional advanced targets, including Bulchina pit, Sandstone North, Hacks, Oroya and Edale prospects, and first pass RC drilling at priority regional targets.
Technical study work is continuing for an update to the current 331,000-ounce mineral resource estimate for the Sandstone Project, based on the additional drilling completed at Lord Nelson, Lord Henry and Vanguard.
The proceeds will also be used for corporate and working capital purposes.