Alto Metals Limited (ASX: AME) has released a significant Mineral Resource update at the Sandstone Gold Project in Western Australia.
The updated Mineral Resource incorporates updates for the Indomitable Camp (including a maiden resource for Indomitable East and Musketeer), an update to Lord Nelson and a maiden Mineral Resource estimate for Bull Oak. The updated Mineral Resource Estimates (MRE) were prepared by independent mining industry consultants, Snowden Optiro and reported in accordance with the JORC Code (2012 Edition).
Highlights
Updated Independent Mineral Resource Estimate outlines an optimized and pit-constrained 17.6Mt @1.5 g/t gold for 832,000 oz within A$2,500/oz optimized pit-shells reported at 0.5g/t gold cut-off (consistent with the March 2022 update).
• Pit-optimizations demonstrate the robust nature of the resource, capturing approximately 80% of the total unconstrained MRE
• Mineral Resources are shallow with over 70% of pit-constrained ounces within 100m from surface and 90% within 150m.
• Mineralization remains open along strike and at depth highlighting the strong potential to continue growing the resource inventory with further drilling.
• Rapid shallow resource growth at Indomitable Camp almost tripling in size to 5.4Mt @1.2 g/t gold for 210,000oz with mineralization currently defined along a +3km long NW/SE trending gold corridor.
• Majority of resources are located on granted mining licences, supported by excellent surrounding infrastructure and are in close proximity to each other, forming part of one mining field.
• Alto intends to continue focusing on adding quality shallow gold ounces by targeting ‘step-out’ mineralization as well as priority targets at depth, to establish a multi-million ounce stand-alone operation at Sandstone.
• Drilling is ongoing targeting high-grade depth extensions at Indomitable. Assays currently pending.
The updated MRE includes all drilling completed up to the end of November 2022. Resource estimates for Lord Henry, Vanguard, Vanguard North, Havilah Camp, Tiger Moth, Piper and Ladybird deposits are unchanged from the Mineral Resources reported in March 2022, 25 September 2018 and 11 June 2019, respectively.
Mineral Resource Estimate – Sandstone Gold Project shallow mineral resource continues to grow Optimized pit-shell constrained MRE – 832,000oz @1.5g/t gold.
Open-pit optimization have been performed by Snowden Optiro on the updated Mineral Resource using a $2,500/oz gold price and reported at a 0.5g/t gold cut-off, resulting in an optimized pit-shell constrained Total Inferred and Indicated Mineral Resource Estimate totalling 17.6Mt at 1.5 g/t gold for 832,000oz of contained gold.
The optimised pit shells are based on mining parameters and operating costs typical for Australian open pit extraction deposits of similar scale and geology.
Over 27% of the Total MRE within the optimised pit-shells is in the Indicated category.
All resources contained in the Inferred category are due to the drill spacing at Indomitable, Vanguard, Havilah and Ladybird and the historical nature of drilling at Lord Nelson, Lord Henry and Bull Oak. It is reasonably expected that infill drilling and additional confirmatory drilling of the historical areas should allow an upgrade of the Inferred Resources to a higher category.
Alto considers the total mineral resources for the Sandstone Gold Project have a reasonable prospect of eventually being mined, taking into account the shallow nature of the deposits, the thickness and gold grades of the deposits, which are located on granted mining or exploration leases, and proximity to existing infrastructure.
The updated 2023 MRE was optimized and pit-constrained using the same gold price and optimization parameters to provide continuity to the 2022 MRE.
Unconstrained MRE – 1Moz @1.4g/t gold
The unconstrained Mineral Resource Estimate for the Sandstone Gold Project is, 23.5Mt at 1.4g/t gold for 1,046,000oz of contained gold, using a 0.5g/t gold cut-off.
The 214,000oz outside the optimized and pit-shell constrained MRE highlights the potential for additional in-pit resource growth through refinement of optimization parameters, an improving gold price and further drilling.
For further information please visit: https://altometals.com.au/
