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Alto Metals Continues High-Grade Gold Hits at Sandstone Project

THE DRILL SERGEANT: Alto Metals (ASX: AME) sharpened its credentials as a potential takeover target by releasing assay results from its latest phase of RC drilling targeting high-grade gold mineralisation beneath the Lord Nelson open pit and at the new Orion gold lode discovery, located 200m south of Lord Nelson, within the company’s Sandstone gold project in Western Australia.

The Orion Lode is the first new gold lode discovered, south of the Lord Nelson pit within the Lords’ corridor; which extends over 3 kilometres, with the Lord Nelson deposit at the north and the Lord Henry deposit to the south.

The current drilling program infilled the shallow portion of the Orion Lode confirming it remains widely open along strike, down dip and down plunge.

RC drill results show the presence of high-grade gold mineralisation within a much broader mineralisation envelope.

Drilling intercepts include:

SRC191
29 metres at 3.5g/t gold from 49m, incl.7m at 7.9g/t gold from 53m;

SRC205
13m at 3.3g/t gold from 83m, incl.2m at 8.8g/t gold from 85m;

SRC192
16m at 3.1g/t gold from 105m, incl.2m at 7.7g/t gold from 118m; and

SRC183
32m at 1.4g/t gold from 51m.

Step out drilling (80 metres) returned 7m at 2.7g/t gold from 155m, including 2m at 6.3g/t gold from 159m (SRC197), defining the Orion Lode over 300m.

Further step-out drilling (up to 80m) was carried out beneath the Orion Lode and Lord Nelson pit extending the high-grade mineralisation down dip and down plunge, including:

SRC184
32m at 2.5g/t gold from 223m, incl. 4m at 12.3g/t gold from 245m;

SRC209
7m at 4.6g/t gold from 209m, incl. 2m at 11.6g/t gold from 210m; and

SRC214
8m at 2.5g/t gold from 190m, incl. 2m at 7.8g/t gold from 194m.

Several high-grade intersections remain outside the current resource, awaiting close spaced drilling.

The drilling also confirmed Lord Nelson is a multiple lode high-grade gold system.

“We continue to be highly encouraged by the results from the Orion lode, which demonstrate excellent continuity of shallow, high-grade gold mineralisation,” Alto Metals managing director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“We have only just scratched the surface of this new lode and our focus is on the down dip and strike potential of Orion, which has all the hallmarks of being part of a much bigger system.

“The Orion Lode is considered to be a repeat lode of the Lord Nelson deposit and our geological modelling highlights the potential additional for Lord Nelson style repeat lodes along the Lords’ Corridor.

“It is a really exciting time for Alto with our next drilling program about to commence to follow up on these latest results.

“The 30,000 metres of drilling we have planned is the biggest drill program Alto has undertaken in a number of years and we are keenly anticipating ongoing results.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@altometals.com.au

 

Web: www.altometals.com.au

 

Inventory Expanded Despite Fund Raising Restrictions

THE CONFERENCE CALLER: Being the recent target of three formal takeover attempts has not stopped Alto Metals (ASX: AME) from adding gold ounces to its Lord Nelson deposit in Western Australia’s East Murchison. By Mark Fraser

Despite restricted access to regular fund-raising mechanisms during these corporate shenanigans, the WA-based junior has still managed to increase Lord Nelson’s inventory by 60 per cent (or 41,000 gold oz) since the start of last year.

As a result, the company has now established an inferred mineral resource for the deposit of 1.8 million tonnes grading 1.9 grams per tonne gold for 109,000 ounces.

Lord Nelson is just one of a number of targets which makes up the company’s wholly-owned – and obviously sought after – Sandstone gold project.

The others are Lord Henry, the Indomitable and Vanguard camps as well as Havilah and Ladybird.

Covering around 800 square kilometres of prospective greenstone belt, the Sandstone project sits some 600km north of the WA capital of Perth and currently boasts a resource of 6.2 million tonnes at 1.7g/t for 331,000 ounces of yellow metal.

During its previous life Lord Nelson – which was discovered by former owner Troy Resources (ASX: TRY) – yielded around 200,000 gold ounces at 4.6g/t from an open pit that was only dug down to 90m depth.

The mining house, however, lost interest in the deposit after it hit transitional fresh rock – mainly because it was looking for oxide material to feed its processing mill, which is now owned by former Alto suitor and current neighbour Middle Island Resources (ADX: MDI).

During his appearance at the recent RIU Resurgence Conference, Alto Metals managing director Matthew Bowles said the company’s immediate exploration focus was on the extensions of known mineralisation at both Lord Nelson and Lord Henry (located 3km to the south) and the corridor (a granodiorite intrusion) in between.

So far, drilling down to 200m depth at the former has revealed an “underground grade” of 16m at 5.5g/t.

Furthermore, Alto has discovered a new lode – Orion – along the Lord’s corridor just to Lord Nelson’s south.

Here, the drill rig has returned a number of promising gold intercepts, including: 10m at 4.1g/t (from 34m depth), 12m at 3.4g/t (66m) and 23m at 3.8g/t (106m).

Bowles said Alto was now confident it was on the verge of finding a “much bigger system” at Lord’s, which boasts historical production of 250,000 ounces from material mined at just 50-80m depth.

This includes 48,000 ounces at Lord Henry, where the current inferred mineral resource sits at 1.82 million tonnes at 1.9g/t gold for 109,000 contained ounces, while drilling has yielded substantial yellow metal intercepts like 2m at 51.3g/t from 70m, 6m at 10.2g/t (50m) and 2m at 20.3g/t (64m).

“What we’ve done is taken a lot of the fantastic work that Troy’s exploration geologists did, we’ve analysed that (and) we’ve overlaid it with a lot of the geology, a lot of the interp(retation) that we’ve had,” Bowles explained.

“We’ve identified a number of cross cutting structures, and coinciding with those cross cutting structures is … a lot of the original shallow drilling that Troy did when they were going up that corridor.

“And bear in mind they were looking for oxide ounces at surface. So there were a lot of those things that weren’t drilled very deeply.

“So we’re going back in – we are not restricted by the mill, and we are looking at finding a big discovery.”

 

Web: www.altometals.com.au

 

Alto Metals Hits Further Mineralisation at New Orion Lode Gold Discovery

THE DRILL SERGEANT: Alto Metals (ASX: AME) announced further drill results from the new shallow gold Orion Lode discovery, located 200m south of the Lord Nelson pit, within the company’s Sandstone gold project in Western Australia.

Alto Metals said the latest results from the Orion Lode highlight the continuity of high-grade mineralisation at the new discovery, including:

SRC205
12m at 4.8 grams per tonne gold from 84m;

SRC204
4m at 4.1g/t gold from 28m; and

SRC206
12m at 1.2g/t gold from 68m and 8m at 1.3g/t from 84m.

The company also completed RC drilling that targeted the primary gold mineralisation beneath the Lord Nelson pit, returning results, including:

SRC209
8m at 4.1g/t gold from 208m.

“These latest results highlight the continuity of shallow, high-grade mineralisation at the new Orion Lode,” Alto Metals managing director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“And the presence of the high-grade shoot within a much larger mineralised envelope, up to 50 metres thick, indicates the presence of a large gold mineralised system.

“We are excited by what we are seeing at Lord Nelson and, with the level of drilling and exploration activity planned to increase in the coming weeks, shareholders can look forward to more results as we test a number of possible Lord Nelson repeat lodes along the three kilometre long Lords’ corridor.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@altometals.com.au

 

Web: www.altometals.com.au

 

Alto Metals Confirms Shallow Gold at Sandstone

THE DRILL SERGEANT: Alto Metals (ASX: AME) completed a recent program of infill drilling to confirm continuity of a new mineralised lode to the south of the Lord Nelson pit at the company’s Sandstone gold project in Western Australia.

Alto Metals carried out the drilling to the south of the Lord Nelson pit, to close the previous drill spacing to 40 metres over a portion of the southern extension.

The drilling intercepted the new gold lode at the predicted lode position and confirmed the continuity of mineralisation.

A step-out drill hole confirmed mineralisation of the new lode extends a further 80m and remains open.

Alto is of the opinion this new lode, located just 200m to the south, appears to be a repeat of Lord Nelson, which historically produced 207,000 ounces of gold at 4.6 grams per tonne mined down to a depth of 90m.

Latest infill drilling results include:

SRC191
28 metres at 2.8 grams per tonne gold from 48m, including 4m at 7.4g/t gold from 56m;

SRC192
16m at 3.7g/t gold from 108m, including 4m at 8.2 g/t gold from 116m; and

SRC190
16m at 1.6g/t gold from 24m, including 4m at 3.8g/t gold from 36m.

Results from the 80m step out drilling results include:

SRC197
8m at 2.4g/t gold from 156m.

“This new lode is emerging as a repeat of Lord Nelson and these latest outstanding results continue to support our view of the likelihood of a much larger mineralised gold system,” Alto Metals managing director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“Drilling has now demonstrated the continuity of the new mineralised lode, which is already known to extend over 100 metres down dip and over 300 metres strike and remains open.

“RC drilling is ongoing at Lord Nelson, targeting high-grade gold mineralisation beneath the pit and further extensional drilling of this new lode.

“We remain focused on continuing exploration, despite the current corporate distractions, and look forward to updating shareholders on further drilling results”

TO READ THE ANNOUNCEMENT IN FULL: CLICK HERE

Email: admin@altometals.com.au

Web: www.altometals.com.au

Alto Metals Continues High-Grade Results From Lord Nelson

THE DRILL SERGEANT: Alto Metals (ASX: AME) reported final one-metre re-split assay results from RC drilling recently carried out at the company’s Sandstone gold project in Western Australia.

Alto Metals conducted the drilling, targeting southern extensions of the Lord Nelson deposit and untested areas beneath the open pit.

Assays from drill holes targeting primary gold mineralisation in previously untested areas below the Lord Nelson open pit demonstrated to be in line with previously released four-metre composite results, confirming continuity of wide zones of high-grade gold mineralisation at depth below the open pit.

One-metre re-split fire assay results for the deeper RC drill holes beneath the Lord Nelson open pit include:

SRC175
17 metres at 3.5 grams per tonne gold from 200m, including 4m at 11.6g/t gold from 211m and 1m at 25.5g/t gold from 214m;

SRC176
16m at 5.2g/t gold from 240m, including 3m at 13.5g/t gold from 240m; and

SRC178
5m at 3.1g/t gold from 232m.

We are impressed with the width and grade of these latest assay results from Lord Nelson, particularly as they are from a previously untested primary zone beneath the historical pit,” Alto Metals non-executive director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“These results confirm the continuity of high-grade mineralisation down plunge from the current defined resource, and have very high-grade in the deepest hole Alto has yet drilled at Lord Nelson, in hole SRC176.”

Alto’s current JORC 2012-compliant Inferred Mineral Resource estimate at Lord Nelson is 980,000 tonnes at 2.2 grams per tonne gold for 68,000 ounces.

This forms part of the company’s total Indicated and Inferred Mineral Resource Estimate for the Sandstone project of 5.4 million tonnes at 1.7g/t gold for 290,000 ounces.

 

Email: admin@altometals.com.au

Web: www.altometals.com.au

 

Alto Metals Reports Further Lord Nelson Gold Hits

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:

SRC168
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.

SRC169
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.

 

Email: admin@altometals.com.au

Web: www.altometals.com.au

 

Middle Island Resources’ Bid for Alto Metals Hits the Wall

THE BOURSE WHISPERER: To quote The Eagles, “It seems like a dream now, it was so long ago”, but it was only in March this year the Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Back then, Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The company said the all scrip off-market takeover offer would give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said valued its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price at the time.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

The Resources Roadhouse spoke to Rick Yeats when both attended the RIU Resources Roadshow in Melbourne.

The deal, howver, failed to gain traction and Middle Island this week announced its off-market takeover bid for fully paid ordinary shares Alto Metals has lapsed.

The reason being that Middle Island’s 50 per cent minimum acceptance condition, to which the Offer was subject, had not been met as of close of the Offer period at 5.00pm (Perth time), Friday, 29 November 2019.

Middle Island thanked those Alto shareholders who had taken up the offer, acknowledging that as the offer had lapsed, they would have their Alto shares returned.

Undeterred, Middle Island said it strongly believes that combining Middle Island and Alto’s gold assets offers a substantial growth opportunity for current and future shareholders of a combined entity.

The company declared the combined entity would have low start-up costs and near-term gold production, utilising Middle Island’s existing Sandstone gold processing plant and infrastructure, along with the consolidation of healthy gold resource upside and exploration potential within the combined entity’s highly complementary tenure.

Middle Island made note that over the past two years, it has unsuccessfully endeavoured to engage the Alto Board on what it considers is a clear, compelling and commercially logical strategy that is widely endorsed by all stakeholders.

Middle Island indicated it intends to continue to pursue meaningful dialogue with the Alto Board of Directors as it seeks to add value for both Alto and MDI shareholders.

 

 

Middle Island Resources Launches Takeover Bid on Alto Metals

THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder over the weekend by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The all scrip off-market takeover offer will give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said values its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

As The Roadhouse was going to print there had been no on-market response from Alto Metals, but we will keep an eye out for further developments.

 

Website: www.middleisland.com.au

 

Alto Metals Confirms Gold at Depth at Vangaurd

THE DRILL SERGEANT: Alto Metals (ASX: AME) recently drilled two 2 RC holes at the Vanguard and Tiger Moth prospects of the company’s Sandstone gold project in Western Australia.

Alto Metals reported that assay results from these holes confirmed geological models and provided samples for preliminary metallurgical testwork, which subsequently returned high recoveries and better than predicted grades.

The company said that assay results received from reconnaissance aircore drilling at Bulchina, Sandstone North and Vanguard Camp also indicates that these mineralised systems are still open, and further drilling is required.

The RC drilling confirmed robust geological models at Vanguard and Tiger Moth returning intercepts into high-grade zones including:

SRC114 (Vanguard)

40 metres at 3.5 grams per tonne gold from 60m; and

SRC115 (Tiger Moth)

8m at 4.1g/t gold from 52m.

The preliminary metallurgical testwork shows recovery of +92 per cent gold from both oxide and primary gold zones.

“Alto’s recently published Mineral Resource estimate [JORC 2012] for the Indomitable and Vanguard Camps was the result of applying a systematic exploration approach,” Alto Metals managing director Dermot Ryan said in the company’s announcement to the Australian Securities Exchange.

“This process resulted in the selection and successful testing of a number of litho-structural gold targets.

“The next stage is to step-out and drill test the down dip/down plunge extensions of these newly discovered mineralised structures and convert gold mineralisation into mineral resource.”

 

Email: admin@altometals.com.au

Website: www.altometals.com.au

 

Alto Metals Lodges Mining Lease Applications

THE BOURSE WHISPERER: Alto Metals has lodge a Mining Lease Application (MLA) over the Indomitable Camp deposits at the company’s Sandstone gold project in Western Australia.

Alto Metals has lodged the application, confident of a positive outcome to the current Scoping Study being carried out on the deposits.

Results from aircore drilling programs in 2017 and 2018 have led Alto to consider there to be an opportunity to commence open pit mining operations over several shallow oxide and primary gold deposits in the project’s Indomitable and Vanguard Camps.

“Alto has commissioned Carras Mining Pty Ltd to undertake Mineral Resource estimates of Tiger Moth, Piper, Indomitable and Vanguard, to form the basis of scoping study,” Alto Metals said in its ASX announcement.

“In anticipation of a positive outcome, and to minimise any delay, Alto has lodged a Mining Lease application over the Indomitable Camp deposits with the Department of Mines, Industry Regulation and Safety (DMIRS).

“Over the September Quarter of 2018, Alto expects to undertake drilling to collect samples for metallurgical testwork and other studies and will investigate processing options.

“The testwork and studies will occur in parallel with continued drill testing and exploration of a number of advanced gold-in-soil and litho-structural targets.”

 

Email: admin@altometals.com.au

Website: www.altometals.com.au