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Brightstar Resources Inks Consolidation Deals with Gateway Mining and Alto Metals

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THE BOURSE WHISPERER: Brightstar Resources (ASX: BTR) has upped the Goldfields consolidation stakes with the inking of deals with two emerging gold exploration plays.

The first is a Binding Agreement signed with Gateway Mining (ASX: GML), under which Brightstar will purchase Gateway’s gold rights within the eastern tenement block of that company’s Montague project.

The deal is profitable to Gateway, which will receive consideration of $14 million, comprising $5 million in cash, $7 million in Brightstar Shares and $2 million in deferred Brightstar Shares (subject to milestones).

Gateway will retain ownership of all other mineral rights (including base metals) within the Montague East Tenement Group, allowing it to continue its base metal exploration on these tenements in line with its recent exploration focus.

Copper-nickel-PGE prospects at Montague East, including the recently targeted Flametree prospect where drilling encountered:

GRC1014
1 metre at 0.72 per cent copper, 0.41 per cent nickel, 1 gram per tonne platinum + palladium (Pt+Pd) from 195m and 1m at 1 per cent copper, 0.39 per cent nickel, 1.2g/t Pt+Pd from 209m (EOH); and

GRC283
4m at 1.03 per cent copper, 0.44 per cent nickel, 0.9g/t Pt+Pd from 137m.

“The deal is structured in a way that delivers immediate cash into our balance sheet while at the same time giving Gateway a seat at the table of an exciting potential emerging consolidation play in the Sandstone region through a significant shareholding in Brightstar,” Gateway Mining managing director Mark Cossom said in the company’s ASX announcement.

“Alex Rovira and his team at Brightstar are working hard to build a significant new gold production company with an exciting growth future, and we are pleased to have been able to participate in what we believe amounts to sensible rationalisation in the belt.”

The ink was barely dry, and Brightstar Resources didn’t get to put the lid back on its biro, with Alto Metals (ASX: AME) tabling papers for a Scheme Implementation Deed (SID) under which Alto agrees to propose a Scheme of Arrangement (Scheme) for acquisition by Brightstar of 100 per cent of Alto.

Under the Scheme, Alto shareholders will receive four (4) Brightstar shares for each Alto share held on the Record Date (Scheme Consideration) giving an implied value of approximately six cents per Alto share, representing a healthy premium of:

– Approx. 82 per cent to the closing Alto share price of 3.3 cents per share on 30 July 2024; and
– Approx. 81 per cent to Alto’s 30-day VWAP of 3.3 cents per share up to and including 30 July 2024.

“The Scheme announced today is a key step towards building a significant gold business and provides Alto shareholders with an exciting opportunity to become part of an emerging gold producer,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“In addition to delivering a significant premium, the Scheme, if approved and implemented, will allow Alto shareholders to retain ongoing exposure to the development of the Sandstone gold project, as part of a larger resources group holding multiple projects, which will reduce the risks associated with holding a single project.

“We believe this transaction is a great outcome for Alto shareholders and stakeholders, who will benefit from the development of the Sandstone gold project as part of an enlarged gold company with an exciting future.”

Brightstar is confident the implementation of the Alto Scheme and completion of the Gateway Montague Acquisition, the company will emerge as a junior West Australian gold explorer, developer and producer of note with a material exploration and development platform.

The upshot from the Scheme and Montague Acquisition will consolidate highly prospective exploration ground in the Sandstone region, complementing Brightstar’s existing production, development and exploration asset portfolio.

“This is a compelling transaction for all stakeholders, as the sensible consolidation of the Sandstone and Montague East Gold Projects delivers an asset base with the critical mass to be advanced towards meaningful production,” Brightstar Resources managing director Alex Rovira said.

“The Sandstone Hub has the mineral endowment and exploration upside to be a significant development opportunity in Western Australia in the coming years and presents as an asset with potential to support Brightstar’s aggressive growth ambitions to become a multi asset mid-tier WA gold producer.

“Brightstar has the team and experience to fast-track the exploration and development of the Sandstone assets in parallel with the development of the Menzies and Laverton Gold Projects, to underpin Brightstar’s ambitions of becoming a multi-asset producer in WA.”

 

TO READ THE FULL GATEWAY MINING ANNOUNCEMENT: CLICK HERE

TO READ THE FULL ALTO METALS ANNOUNCEMENT: CLICK HERE

 

Roadhouse Roadshow Brings Melbourne Punters Together

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CONFERENCE CALLER: The Resources Roadhouse presented its inaugural Roadhouse Roadshow this week.

The Roadhouse welcomed punters to the auspicious surrounds of the Kelvin Club in the Melbourne CBD to listen to presentations from four ASX-listed companies.

Encounter Resources (ASX: ENR) executive chairman Wil Robinson provided plenty of food for investment thought giving an insightful look at the company’s large portfolio of 100 per cent-owned projects in one of Australia’s exciting mineral provinces considered prospective for copper and critical minerals including the Aileron project in the West Arunta region of Western Australia.

Encounter Resources executive chairman Wil Robinson presenting to the Kelvin Club throng

Adelong Gold (ASX: ADG) managing director Ian Holland explained how his company is on track to becoming a mineral producer at the company’s Adelong Goldfield project in New South Wales as well as giving a brief look at its new lithium project in Brazil.

Bass Oil (ASX: BAS) managing director Tino Guglielmo steered the room on an oil & gas tack explaining the benefits the company is earning as an oil producer with majority interest in eight permits in the Cooper Basin of Australia that includes the 100 per cent-owned Worrior and Padulla oil fields.

Alto Metals (ASX: AME) managing director Matthew Bowles closed the day’s presentations by enlightening attendees on the company’s aspirations for the shallow, open pit gold resource of 17.6 million tonnes at 1.5 grams per tonne gold for 832,000 ounces across its Sandstone Gold Project in Western Australia.

Punters and presenters alike, left the day with a sense of either having learned something new to think about or having met a new set of prospective investors that showed much interest after the formal part of proceeding was complete.

There will be more Roadhouse Roadshows in the future. Keep an eye out for these as they arise.

Alto Metals Secures Option Over Lightning Mining Lease

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THE DRILL SERGEANT: Alto Metals (ASX: AME) is set to acquire granted mining lease M57/659 that sits within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Alto Metals has signed an option agreement to acquire gold prospect, known as ‘Lightning’, which is located only three kilometres from the 2.3 million tonnes at 2 grams per tonne gold for 150,000 ounces Vanguard Camp.

The mining lease has seen no RC drilling carried out and remains untested at depth, however shallow high-grade gold mineralisation was intercepted in limited historical RAB drilling.

“We are pleased to have secured an option to acquire the Lightning prospect, situated within a granted mining lease and immediately west of our Vanguard deposit,” Alto Metals managing director and CEO, Matthew Bowles said in the company’s ASX announcement.

“Limited shallow RAB drilling in the area has returned some significant gold intercepts of up to 147 grams per tonne gold, yet the area has not been tested with deeper RC drilling.

“There are extensive shallow alluvial gold workings throughout the Lightning area, however the primary source of mineralisation has not yet been identified.

“With a growing, open-pit gold resource of 832,000 ounces of gold at 1.5 grams per tonne, constrained within $2,500 per ounce pit shells, at our Sandstone gold project, we consider Lightning to be a great addition to our asset base and has the potential to deliver further resource growth in the Vanguard/Lightning area.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Gold Companies on the Bill at Roadhouse Roadshow

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THE CONFERENCE CALLER: The Resources Roadhouse will be on the road again in a couple of weeks. This time we will be in Melbourne presenting our inaugural Resources Roadhouse Roadshow. Here’s a quick bite of two of the companies that will be presenting.

Adelong Gold (ASX: ADG) has declared itself as being on track to becoming a mineral producer at the company’s Adelong Goldfield project in New South Wales.

Adelong Gold acquired the project in May 2020 that currently hosts a JORC 2012-compliant Resource of 188,000 ounces.

The most recent news to filter out of the project was completion of a soil sampling program to the north of the Currajong deposit that had been designed to test an area to the north-west of the Adelong Mill and resulted in defining several new drill targets.

The soil sampling program was carried out to the north of the Currajong deposit, with 191 samples taken on 10 lines covering a one kilometre strike length.

Results included five samples of greater than one gram per tonne gold with a peak result of 1.75g/t gold whilst highlighting potential for multiple lines of mineralisation striking NNW similar to the adjacent deposits in the immediate area of Challenger, Currajong and Caledonian.

“We are very encouraged with the results of this soil sampling program, which highlight the potential for extension of mineralisation to the north of the Currajong deposit within close proximity of the Adelong Mill,” Adelong Gold managing director Ian Holland said at the time.

“The Scoping Study demonstrates an attractive commercial operation to be developed at Adelong, and so the discovery of further shallow mineralisation nearby augurs well for this project to grow further.”

Adelong Gold has further drilling planned within the key deposits mentioned above (Challenger, Currajong and Caledonian) that comprise the Scoping Study currently underway with a view to potentially upgrading and extending these sources.

This will underpin works to upgrade the current study to allow for a range of funding options to be considered for the development of the Adelong gold project.

Alto Metals (ASX: AME) also is also keeping drillers busy with a regional aircore (AC) drilling program having got underway at the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Alto Metals has an initial approx. 4,000 metres program planned to test shallow gold targets that were identified via a recent infill soils sampling program at the Sandstone North prospect.

The infill program returned gold results that delineated a coherent gold anomaly over 1km strike, including values of up to 100ppb gold.

The location of the gold anomaly also correlates with a major north-south trending interpreted shear zone along a regional fold axis, in a similar position and approximately 1.5kms along strike, from historical workings and high-grade drilling results.

“We are pleased to have a rig back on site drilling at our Sandstone gold project,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“Given the structural setting and high-grade gold results reported in historical drilling at Sandstone North, we are excited to be testing these compelling regional gold targets.

“We continue to focus on advancing our Sandstone gold project and Sandstone North demonstrates the quality of our regional project pipeline.

“We look forward to providing shareholders with updates on the results of the drilling when they are received.”

Alto Metals currently has a shallow, open pit gold resource of 17.6 million tonnes at 1.5 grams per tonne gold for 832,000 ounces optimised and pit-constrained within $2,500/oz pit-shells.

Of note, the mineral resources are shallow with over 90 per cent within 150m from surface.

The optimised and pit-constrained MRE captures over 80 per cent of the total unconstrained MRE of 23.5 million tonnes at 1.4g/t gold for 1.05 million ounces.

The Roadhouse Roadshow will be at The Kelvin Club in Melbourne of Wednesday April 24.

Melbourne readers are welcome and encouraged to attend. To save your place follow this link to register:

https://vert.eventsair.com/resources-roadhouse-roadshow-april-2024/registration

Alto Metals Defines New Sandstone North Gold Target

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THE DRILL SERGEANT: Alto Metals (ASX: AME) has identified a substantive gold and pathfinder element anomaly within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Alto Metals reported the six kilometres long by 250 metres wide anomaly was defined via recent fine fraction soil geochemical sampling over the project’s Sandstone North area and is considered to be coincident with interpreted north-trending shear zones along a major regional fold axis.

“Our low-cost regional soils program has identified what appears to be a very large, structurally controlled gold target extending over six kilometres at Sandstone North,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“The gold anomaly is coherent with elevated levels of arsenic and lead – key gold pathfinder elements for structurally hosted gold mineralisation – that have also been identified over the six kilometres of strike.

“Limited drilling at Sandstone North, over only 300 metres of strike, has returned some exceptionally high-grade results, including 15 metres at 9.1 grams per tonne gold from 82m, including 3 metres at 32.1 grams per tonne gold which ended in mineralisation.

“The style of gold mineralisation is different to other parts of the Sandstone Greenstone Belt, with mineralisation hosted within sulphidic quartz veins in sediments, which is a similar setting to Goldfields high-grade Waroonga deposit at Agnew.

“The high-grade nature of gold mineralisation, structural setting and relatively under-explored area presents an outstanding regional target.

“Whilst the company remains focused on the Alpha Domina which hosts the current 832,000 ounces open pitable mineral resource, the Sandstone North target highlights the significant upside to the Sandstone gold project.

“Preparations are already underway for an initial approx. 5,000 metres of low-cost air-core drilling to commence early next quarter at this exciting new gold target, which has the potential to lead to the discovery of a significant, structurally hosted gold prospect, at Sandstone North.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Alto Metals Identifies Growth Potential at Bull Oak Mine

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THE DRILL SERGEANT: Alto Metals (ASX: AME) has been carrying out a new review within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Alto Metals’ latest review is being undertaken on the historic Bull Oak gold mine and surrounding historic workings, which it says has highlighted potential for near-term resource growth.

The review has determined the style of mineralisation at the Bull Oak deposit to be multiple stacked lodes hosted within a granodiorite, similar to that observed at Lord Nelson and Lord Henry.

The intrusion has a strike length of approximately 500m and a width of up to 150m, within which gold mineralisation is not constrained.

Two deeper historic holes drilled respectively by WMC and Troy in 1985 and 2009, intersected multiple mineralised reefs with numerous instances of visible gold reported.

Alto has drilled one RC hole at Bull Oak to date to test and validate the deeper historical results and intersected multiple stacked lodes with the hole ending in mineralisation.

Alto considers the lack of recent exploration and untested mineralisation to offer an opportunity with potential to extend mineralisation below the shallow mined pit both up and down dip as well as along strike and at depth.

“Mineralisation at Bull Oak is multiple stacked lodes hosted within a granodiorite, similar to that at Lord Nelson and Lord Henry,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“Most of the historic drilling at Bull Oak has been relatively shallow, however two historic holes drilled to 300 metres depth intersected multiple lodes and reported numerous instances of visible gold.

“A follow up deep hole drilled by Alto returned a wide zone 260 metres at 0.4 grams per tonne gold from 36m, including 14.1g/t gold and ended in mineralisation.

“The mineralisation is completely untested up and down dip of these intercepts, as well as at depth, and we are excited to have an RC rig arriving shortly to test these outstanding targets, that have the potential to drive near-term growth.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Alto Metals Granted New Mining Lease over Lords Corridor

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THE BOURSE WHISPERER: Alto Metals (ASX: AME) has picked up new ground, increasing the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Alto Metals reported receipt of notification from the WA mines department of granting of its new mining lease application (M57/658).

The new granted mining lease is over a mineralised corridor between Alto’s existing mining leases ML57/652 and ML57/651, which cover the Lord Nelson and Lord Henry deposits respectively and is contiguous with ML57/650 to the west, consolidating the Lords Camp, which currently hosts a shallow gold Mineral Resource of 0.4 million ounces at 1.6 grams per tonne gold under granted mining lease.

The company considers securing this new mining lease further de-risks the Sandstone gold project and provides optionality for future mining scenarios.

“We are pleased to announce that our application for a new Mining Lease over the Lords Corridor has been granted,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“Importantly, this further de-risks the Sandstone gold project and complements our strategy to maintain optionality for future development scenarios.

“I would like to thank our in-house team on their work to successfully secure this new mining lease and DMIRS for the support of the Sandstone gold project in granting the new lease.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Alto Metals Announces More Indomitable Gold Results

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THE DRILL SERGEANT: Alto Metals (ASX: AME) reported gold results from the latest RC drilling undertaken at the Indomitable Camp, within the company’s 100 per cent-owned, Sandstone gold project in Western Australia.

Alto Metals has completed a second phase of approximately 5,000m of RC drilling at Indomitable targeting interpreted high-grade structures that had been identified from drilling in late 2022 and testing extensions of the existing mineralisation in primary rock.

Assay results for the final four holes from the second phase of RC drilling at Indomitable all intersected further broad zones of shallow oxide gold mineralisation, including:

SRC961
14 metres at 2.6 grams per tonne gold from 61m, including 2m at 10.6g/t gold from 61m, including 1m at 18.8g/t gold from 62m;

SRC962
11m at 3.4 g/t gold from 57m, including 2m at 12.6g/t gold from 60m and 1m at 19.8g/t gold from 60m;

SRC963
14m at 1.1g/t gold from 60m, including 1m at 5.6g/t gold from 64m; and

SRC964
12m at 1g/t gold from 34m, including 3m at 2.4g/t gold from 41m.

“We are pleased to announce the final assays from this drilling program at Indomitable, which have intersected more shallow oxide gold mineralisation. Importantly, during this overall phase of drilling gold was intersected in multiple shallowly dipping interpreted thrust faults in fresh rock at depth, with higher grades typically observed where these faults intersect the steeper plunging interpreted structures,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“These results are now being incorporated into our targeting model for follow up drilling.

“In parallel, we are continuing our review of the historic Bull Oak Mine, following the maiden resource estimate released earlier this year, and the potential we see for further resource growth.

“Additionally, our low-cost mapping and multi-element soils is ongoing, along the Edale Shear on the eastern side of the Sandstone Greenstone Belt.”

Alto outlined its upcoming work at Sandstone, with the next phase of exploration either planned or already underway, to include:

• ongoing targeting and prospectivity review of the historic Bull Oak Mine and surrounds with the intention of identifying potential for further resource growth; pending

• a follow up drilling program for structural and lithological purposes at Indomitable, based on the increased geological interpretation and updated targeting model from this most recent drill program. The Company is finalising an application for co-funding of the program under the WA State Govt. Exploration Incentive Scheme (EIS)

• a phased 5,000-10,000m of extensional and resource RC drilling, contemplated for Bull Oak, Indomitable and Vanguard – planned to commence in the coming weeks

• first pass RC drilling at multiple historic gold workings within the Hacks West area for high-grade reef style mineralization as well as regional targets – planned for Q4

• low-cost lithium exploration work is continuing at Sandstone, where are number of prospective targets have already been identified – ongoing

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Alto Metals Continues Indomitable High-Grade Gold Drive

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THE DRILL SERGEANT: Alto Metals (ASX: AME) armed itself for Diggers & Dealers by reporting further gold results from RC drilling at the Indomitable Camp, within the company’s 100 per cent-owned, Sandstone gold project in Western Australia.

Alto Metals completed a second phase of approximately 5,000m of RC drilling at Indomitable, targeting interpreted high-grade structures that it identified from drilling in late 2022 and testing extensions of the existing mineralisation in primary rock.

The latest assay results stem from one-metre photon assays relating to 18 RC holes drilled at Indomitable comprising a total of 3,234m at an average downhole depth greater than 200m.

The drilling intersected thick zones of shallow oxide gold mineralisation and high-grade gold mineralisation in primary mineralisation at depth, including:

Oxide

SRC944
15m at 3.1 grams per tonne gold from 32m, including 8m at 5g/t gold from 32m, including 1m at 22.2g/t gold from 33m;

SRC949
15m at 2.1g/t gold from 72m, including 5m at 5.4g/t gold from 79m and 1m at 18.9g/t gold from 83m;

Fresh

SRC960
11m at 1g/t gold from 159m, including 2m at 2.7g/t gold from 159m;

SRC959
6m at 2.2g/t gold from 193m, including 1m at 6.4g/t gold from 193m; and

SRC948
1m at 11.3g/t gold from 237m and 4m at 2.1g/t gold from 283m within a broad ‘halo’ of 34m at 0.6g/t gold from 275m.

“This second phase of drilling at Indomitable was, for the first time, targeting the interpreted high-grade structures at depth,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“The drilling has again intersected shallow high-grade gold in oxide including 15 metres at 3.1 grams per tonne gold, including one metre at 22.2 grams per tonne gold, but more importantly has intersected gold mineralisation of up to 10 grams per tonne gold in multiple shallowly dipping interpreted thrust faults in fresh rock at depth.

“Our drilling has shown that mineralisation remains open at depth with higher grades typically observed where these faults intersect the steeper plunging interpreted structures.

“We are awaiting assays for the final seven RC holes of this program.

“Following this we plan to commence diamond drilling for structural information, and continue further RC drilling.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Alto Metals Reports New Indomitable Drilling Results

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THE DRILL SERGEANT: Alto Metals (ASX: AME) reacted to a speeding ticket from the ASX by reporting follow up RC drilling results from the Indomitable Camp, within the company’s 100 per cent owned Sandstone gold project in Western Australia.

Alto Metals has drilling underway comprising an RC program targeting primary mineralisation at depth at Indomitable that includes the deepest RC drilling undertaken at Indomitable to date with drill holes planned to approx. 300m downhole depth (250m below surface).

Initial assay results from the laboratory for the first four RC holes have been received, confirming high-grade gold mineralisation including:

SRC941
24 metres at 2.2 grams per tonne gold from 160m, comprising 16m at 3g/t gold from 167m, including 1m at 8.8g/t gold from 175m and 1m at 9.4g/t gold from 182m.

Alto noted these latest results represent the deepest gold mineralisation intersected at Indomitable and are outside the current mineral resource, beneath the optimised pit shell.

“Whilst very early in the program, and not to be taken out of context, the initial results from these first holes is encouraging and represents the deepest significant gold mineralisation intersected at Indomitable,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“SRC941 returning 24 metres at 2.2 grams per tonne from 160 metres in oxide, again highlights the significant depth of weathering in the system and the potential for mineralisation in primary rock at depth.

“This phase of drilling at Indomitable is ongoing and is targeting the orientation of the interpreted high-grade structures within the fresh rock, including the recently announced 16 metres at 13.1g/t gold from 19 metres intersected in SRC918.”

Drilling completed by Alto over the last 12 months has extended the oxide gold mineralised footprint at Indomitable to over 3km in strike and remains open in every direction.

The company considers the latest results from indomitable to support its view that the size and scale of the oxide mineralisation at Indomitable is a strong indication of a much larger system.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE