Junior explorer Alt Resources (ASX:ARS) has returned multiple thick, shallow intercepts like 104m at 1 gram per tonne (g/t) – including a high-grade 5m intersection grading 9.15g/t – at its Shepherds Bush prospect.

Shepherds Bush is part of the 406,000oz Mt Ida project in WA, which Alt claims has “multimillion-ounce potential”.

A December campaign, building on previous drilling, indicates that Shepherds Bush has “the potential to develop as a bulk tonnage, low-grade gold deposit”, Alt says.

These grades might not seem very exciting but remember: some of Australia’s lowest cost gold operations/developments have grades around the 1-2g/t mark.

Examples include Gold Road’s (ASX:GOR) Gruyere (1.3g/t), Capricorn Metals’ (ASX:CMM) Karlawinda (1g/t), or Regis Resources (ASX:RRL) McPhillamys (1.05g/t).

READ: When it comes to gold deposits, grade is NOT king

The stock was up 10 per cent in morning trade.


Alt chief exec James Anderson says the explorer has only drilled 29 holes so it is a little early to tell “what Shepherds is at the moment”.

“This is a shallow, close to surface and open pit oxide deposit, [so] comparisons with hard rock deposits would not apply,” he told Stockhead.

“Back of envelope estimation is currently 5.5 million tonnes [which] could develop further with more drilling.

“Think of the MCG ground which is ~100m in length to give a sense of this intercept.

“Depth is 100m down from the surface RL, so it’s a pretty interesting deposit.”

Alt Resources says it will model these latest results and expects to deliver a maiden resource for Shepherds Bush this quarter.

But the company will also continue to expand the drilling programs in 2020, with this yellow circle – southwest of the Shepherd’s Bush drill area – seen as a prospective target area:

The drill rigs head back out next month.


In other ASX gold news today:

Follow-up diamond drilling kicks off next week at the Ouarigue South discovery — a JV between Predictive Discovery (ASX:PDI) and major miner Resolute (ASX:RSG) — where first pass drilling returned results like 45.3m at 3.16g/t gold, 45.9m from surface. Resolute inherited the Predictive JV last year as part of its $400m acquisition of Toro Gold.

“The Toro Gold/Resolute Mining transaction has provided Predictive with an experienced and well-funded joint venture partner to manage our exciting Ferkessedougou North and Boundiali projects in Cote D’Ivoire,” Predictive managing director Paul Roberts says. The ~$4.4m market cap stock was unchanged in morning trade.

READ: If exploration is like gambling, then Predictive Discovery is increasing the odds of a big win