Alto Metals Ltd (ASX:AME) has updated the mineral resource for Sandstone Gold Project in Western Australia, growing the inferred and indicated resource to a collective 12.4 million tonnes at 1.6 g/t for 635,000 ounces of gold, a 92% gain at a discovery cost of just $14 per ounce.
The capital expenditure of the project is also shaping up well, expected to be limited to about $2,500 per ounce through optimised pit shells at a 0.5 g/t gold cut off. This is possible because 90% of the measured ounces are within 160 metres of the surface.
Gold recovery test-work has demonstrated a 96% recovery rate from fresh rock – averaging 93% across all rock types – which supports a simple cyanide extraction process.
The project retains prospectivity for further ounces, with shallow, high-grade gold systems remaining open along strike and at depth at all deposits within the tenure.
Targeting further resource growth
“We are extremely pleased to be able to report this substantial increase in the gold resource, that has been independently estimated by Snowden Optiro, to 635,000 ounces at the Sandstone Gold Project,” Alto Metals managing director Mathew Bowles said.
“We view this very much as an interim resource upgrade, with significant scope to delineate additional shallow, high-grade gold ounces with the current and planned drilling at the Lords Corridor, Vanguard and Indomitable.”
“The company remains focused on adding further ounces with extensional drilling and plans to mobilise additional rigs to fast-track this resource growth and also test a number of our high-priority regional targets.”
Alto has enjoyed swift success in upgrading the mineral resources within Sandstone, tripling the Vanguard Camp resource to 150,000 ounces and more than doubling the Lord Nelson deposit to 267,000 ounces.
Additionally, this resource upgrade did not include an updated estimate for the Indomitable Camp, where recent high-grade results from outside of the resource boundary will be included in another update in the second half of this year.
Bowles said these numbers gave Alto confidence it can continue to materially grow the resources at Sandstone.
“I would like to thank the entire team for their hard work and dedication over the last 18 months, which has led to this significant milestone,” he continued.
“With our next major drill program well underway, 2022 is already shaping up to be another busy year for Alto, with strong news flow over the coming months and another resource update anticipated for later in the year.”
Next steps
AME has designed a 60,000-metre drill program for 2022, with an initial 18,000 metres of reverse circulation (RC) drilling targeted at resource growth and high-grade depth extensions to the Lord Nelson, Indomitable and Vanguard camps.
Alto is well funded to complete its exploration and resource-growth activities, holding $6.1 million in cash as of December 31, 2021.