Gold: Alt uncovers shallow 104m-long, 1g/t intercept at Shepherds Bush
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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).
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.
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.