THE DRILL SERGEANT: Take-over target, Alto Metals (ASX: AME) made itself an even more attractive proposition with the release of results from a recent drilling program at the Lord Nelson prospect within the company’s Sandstone gold project in Western Australia.
Alto Metals conducted the drilling to target extensions of high-grade mineralisation both along strike and beneath the Lord Nelson open pit during February and March 2020, comprising a total of 19 RC drill holes (SRC163-181) for 3,718 metres.
The company reported the drilling had confirmed shallow mineralisation (around 70metres vertical depth) some 200m along strike to the south of the Lord Nelson pit.
One-metre re-split fire assay results include:
23 metres at 3.8 grams per tonne gold from 106m, including 6m at 4.6g/t gold from 106m and 10m at 4.5g/t gold from 116m.
10m at 4.1g/t gold from 34m, including 2m at 12.8g/t gold from 36m.
Mineralisation style and geological setting of this lode is identical to that of the Lord Nelson deposit.
The latest results follow previously announced high-grade gold results the company achieved from wide spaced deeper drilling that highlighted potential in the primary zone below the Lord Nelson pit.
“Drilling results to date clearly demonstrate the continuity of wide zones of high-grade mineralisation both along strike and at depth, beneath the historic Lord Nelson open pit,” Alto Metals non-executive director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.
“The continued success of the drilling program validates the company’s exploration strategy and confirms the mineralisation style and geological setting being identical not only to that of the Lord Nelson deposit but also of many other major orogenic gold deposits in the Yilgarn.”
Alto also reported that its applications for Mining Leases M57/650, M57/651 and M57/652 were granted on 23 March 2020.
These leases cover the company’s Havilah, Lord Nelson and Lord Henry JORC 2012 Mineral Resources.
Alto believes the granting of these additional leases complements its other granted Mining Leases M57/646 and M57/647, which cover the Indomitable and Vanguard Camp JORC 2012 Mineral Resources.
The company outlined its thoughts that securing these leases is part of a longer-term strategy for Sandstone, however Alto’s immediate focus remains the exploration if its numerous prospects within its 100 per cent-owned 800 square kilometres project area.
On 21 February 2020 Goldsea Australia Mining Pty Ltd, an Australian wholly-owned subsidiary of Shandong Goldsea Group Co. Ltd, announced ITS intention to make an off-market takeover to acquire all of Alto Metals’ shares 6.5 cents cash per share.
The Goldsea offer is the second take-over received by Alto in less than 12 months, following the previous takeover offer from Middle Island Resources (ASX: MDI) in 2019.
The directors of Alto Metals have advised its shareholders they should continue to take no action on the offer, and await the Board’s formal recommendation.