Maiden Gold Resource for Emu and Southwark, Increases Bottle Creek Gold Project to 206,800oz

Maiden Gold Resource Increased at Bottle Creek
Maiden Gold Resource Increased at Bottle Creek
Canberra, Aug 16, 2018 AEST (ABN Newswire) - Alt Resources Ltd (ASX:ARS) (Alt or 'the Company') is pleased to advise a maiden JORC compliant Mineral Resource estimate for the Emu and Southwark deposits, at Alt's Bottle Creek Gold Project of 1.65Mt @ 2.1 g/t Au, for 109,500 oz gold (see Table 1 in link below), including 1.55Mt @ 13.0 g/t Ag for 0.65 Moz silver. This constitutes the first modern resource for the Bottle Creek Project, and the first resource estimate undertaken by Alt Resources within its larger Mt Ida Gold Project. The Mt Ida Gold Project is rapidly evolving into a promising gold hub, with multiple exploration and mining targets throughout the vicinity. In combination with existing Mineral Resources within the Mt Ida Gold Project, at the Quinns and Mt Ida South projects, Alt's combined Mineral Resource Inventory now stands at 2.8 Mt @ 2.25 g/t Au, for 206,800 oz Au(see Note below). See Appendix 1 (see link below) for a summary of the existing Mt Ida Project resources.

HIGHLIGHTS:

- Maiden JORC Resource estimate for Emu and Southwark deposits at Bottle Creek; 109,500 oz Au and 650,000 oz Ag

- Greater Mt Ida Project combined resource inventory now stands at 2.8Mt @ 2.25 g/t Au for 206,800 oz Au and 650,000 oz Ag

- 70,000 oz Au in Indicated category

- Maiden Resource produced within 6 months of project acquisition, at a discovery cost of $9.80 per ounce

- Emu and Southwark Resource delivers approximately 12,000 oz Au per 100m of ground covered, with only 900m of strike length covered

- Resource includes 11,690 m of new RC drilling across the un-mined Emu and Southwark deposits

- High degree of confidence achieved in 11,890m historical drilling

- Second stage of RC Drilling extends strike length to 1.6 km

- Results from second stage drilling will be incorporated in an updated resource estimate

- Drilling to commence beneath the VB and Boags pits, testing mineralisation potential at depth

- Laterite drilling program to commence in coming weeks

- Mine planning, pit optimisation underway, and metallurgical study commissioned, ahead of Pre-Feasibility Study

- RC and Diamond drilling will continue through the remainder of 2018 and 2019 to test extensions

The Emu and Southwark Mineral Resources are based in an area measuring 9.96 ha, with a strike length of 1.4 km (see Figure 1 in link below). There is significant growth potential outside of these zones based on known gold mineralised extensions to the north, south and at depth. Further potential exists between the Emu and Southwark deposits, which are 500m apart along strike. The Maiden Emu and Southwark Mineral Resource delivers approximately 12,000 oz Au per 100m of ground along the defined mineralised trend. Of this trend, only 900m of strike length has been covered thus far, therefore significant exploration potential remains.

The resource includes 11,692 m of Alt's new drilling as well as 11,887 m of historical drilling. 65 % of the resource estimate is in the higher confidence Indicated category (70,000 oz Au), with the remainder classified as Inferred. The cut-off grade for the Mineral Resource calculation was 0.5 g/t Au.

Alt CEO, James Anderson, commented, "The Company focus now is to deliver JORC compliant resource ounces as quickly and as cost effectively as possible. Everything we undertake moving forward is to progress the Mt Ida project to a mass that will support a processing plant for a minimum of 5-6 years. This Maiden Resource at Emu and Southwark is an excellent result in the first instance and we have demonstrated the quality of the Bottle Creek Project.

The most significant takeaway from this Maiden Resource is how many ounces we have delivered per 100 metres of ground covered and the cost per resource ounce. It is important to keep in mind that Bottle Creek mineralisation stretches over 7-8 kilometres of undeveloped strike. The mineralisation along this strike length is largely from surface and the success of the historical operation suggests the project is amenable to open pit mining of oxide ore. Everyone has done a great job delivering this Maiden Resource and for our investors it is only the start; there will be a lot more to look forward to as we progress this project."

Mineral Resource Estimate

Project Location and Geology

The Bottle Creek Gold Project lies 100 km north east of Menzies in the Mt Ida gold belt (see Figure 2 in link below). The gold mine is located on the northern extremity of the Mt Ida-Ularring greenstone belt extending from Davyhurst to Mt Alexander (see Figure 2 in link below). The Ularring greenstone belt forms the western part of the Norseman-Wiluna Province of the Yilgarn Craton. The location of mineralisation and local geology, is shown in Figure 3(see link below). Locally, gold and silver mineralisation is hosted in carbonaceous, sulphidic shales, within a larger package of interbedded basaltic volcanics, sediments and ultramafic rocks. The area is tightly folded and metamorphosed, with intrusion of younger dolerite dykes (Robertson, 2003). Mineralisation at Bottle Creek occurs over a strike length of 11km, running north-west-south east and is interpreted to be nearly vertical, to steeply west-dipping.

Bottle Creek Drilling and Assay Summary

Alt commenced RC drilling at Bottle Creek in March 2018, completing a first phase program of 11,692 m (140 drillholes) in May 2018. This drilling forms the basis of the JORC Mineral Resource. Full details of this drilling, including comprehensive reporting of assay results and intersections for all Alt drillholes used in the Resource have been previously reported. A listing of relevant ASX announcements is provided in Appendix 2(see link below).

Alt's drilling at Bottle Creek extends for approximately 1.4 km north-north-west/south-south-east. The main mineralised zones at Southwark and Emu are drilled on 25 m spaced sections, with Alt's new drilling infilling the historical drill fence spacing to between 10 and 25 m. Drillholes on the sections are 1 to 20 m apart. This density of drilling provides an excellent opportunity for constraint on geological and mineralisation interpretations.

2018 Bottle Creek Maiden Resource Estimation

Alt Resources employed the services of Jorvik Resources to undertake the Maiden JORC Mineral Resource Estimation for the Bottle Creek Gold Project. The Mineral Resource incorporates all drilling data undertaken by Alt Resources up to the 2nd May, 2018, as well as historical drilling conducted by Electrolytic Zinc Company and Norgold Ltd between 1985 and 1989. The combined drillhole dataset includes 23,532m metres drilled over 342 RC and 15 DD holes. Table 1 (see link below) gives the summary Mineral Resource Estimate for the Bottle Creek.

This Mineral Resource Estimate is the Maiden Resource for Alt Resources. Bottle Creek is a brownfields project that has not been worked since 1989. The resource is reported in accordance with the guidelines of the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2012).

Classification of the resource estimate, as described below, is based principally on data density, geological confidence criteria and representativeness of sampling. The in situ mineral resource is constrained by the mineralisation domain boundaries.

Assumptions and Methodology

This Mineral Resource estimate is based on a number of factors and assumptions:

- All of the available drilling data was used to define and model the mineralised domains for Au.

- Only Diamond, RC and Air Core drilling data was used for the Mineral Resource estimation. Historical RAB holes were not used in the Mineral Resource estimation due to sample quality.

- The recent Alt drilling has had all collar positions surveyed. A detailed topographic surface was available for the EMU deposit. Historical drill hole collars were registered to this surface. At Southwark a topographic surface was generated from the surveyed drillholes and used to register the historical drill collars. The survey control for collar positions was considered adequate for the purposes of this study.

- The mineralised domains were interpreted from the drilling data by Alt in Micromine software. This string interpretation was modelled in 3D by Jorvik using Vulcan software. Mineralised domains and weathering surfaces were modelled and used to flag the density and grade sample data for statistical analysis and estimation.

- A review of the quality assurance and quality control (QAQC) data was completed. The QAQC program included company standards, duplicate samples and blanks. Overall, data quality was deemed satisfactory for the current Mineral Resource classification.

- Statistical and geostatistical analysis was carried out on drilling data composited to one metre downhole. This included variography to model spatial continuity in the geological domains.

- A block model was constructed using 10 m x 10 m x 10 m parent cells covering the extent of Emu and Southwark (see Figure 6 in link below).

- The Ordinary Kriging interpolation method was used for the estimation of Au using variogram parameters defined from the geostatistical analysis. Top cutting was used in selected domains to reduce the influence of outlier composite samples.

- A subset of the Au data also has Ag assays. There is a poor correlation between Au and Ag. Ag was estimated into the model using Ordinary Kriging and the same parameters as those used for Au. No top cutting of Ag values was applied.

- Dry Bulk Density ("density") was assigned by material type. Density values were derived from measured values included in the drilling database.

The mineralised envelope was wireframed using both geological logging information and assay data for Au (g/t). The Mineral Resource has been divided up into discrete deposits at Southwark and Emu. Figure 6 (see link below) shows the calculated block model for Southwark and Emu. The block model is coloured by grade as shown in the legend. This image demonstrates the high-grade core present within the main lodes at both Emu and Southwark (pink-red colours), with peripheral structures or mineralised stringers forming the bulk of lower grade material (yellow-green-blue).

Mineral Resource Statement

The resource estimates are classified in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC, 2012).

The Emu and Southwark Mineral Resource estimate was completed by Stephen Godfrey, Senior Resource Geologist with Jorvik Resources, who is a member of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Godfrey has sufficient and relevant experience in modelling and resource estimation be considered a "Competent Person" as defined by the JORC Code (2012).

The classification was considered appropriate on the basis of drill hole spacing, sample interval, geological interpretation and representativeness of all available assay data. The primary lodes of the Emu resource are classified as Indicated. The minor Emu lodes are classified as Inferred due to insufficient sampling and/or geological continuity. The Southwark deposit is classified as Inferred. Drilling and sampling data are adequate but increased geological complexity reduces the confidence in the interpretation. The areas of laterite overlaying both deposits have been classified as Indicated.

The resource is based on an Ordinary Kriging interpolated block model. The Resource is subdivided by deposit, mineralised domains and material type. Table 2 (see link below) reports the gold Mineral Resource at a 0.5 g/t Au lower cut off. Table 3 (see link below) reports the silver Mineral Resource contained within the gold Resource in Table 2 (see link below).

Progressing Towards Development

Alt Resources is committed to advancing the Bottle Creek Gold Project towards development. A number of technical studies are currently underway to facilitate this goal, including mine planning and pit optimisation, as well as metallurgy.

Consistent with the Corporate Strategy to fast track the Bottle Creek Project, Alt has commenced Metallurgical and Flowsheet Development to establish an operation capable of processing an initial ~500ktpa ore with potential to expand in the future. The Company has engaged METS Engineering to review all historical documentation from the Bottle Creek gold plant and cost the Metallurgical Testwork and Flowsheet development.

Alt has also engaged Minecomp Kalgoorlie to commence the Mine Plan and Pit Optimisations for the pre-stripped Emu deposit and the Southwark deposit. On completion, the Mine Plan will be submitted to the Department to commence the approval process.

Alt has focused on realising the Company's vision of expanding existing Mt Ida JORC Resources and making new discoveries in the Mt Ida Gold Belt. We are moving towards our goal of establishing a central gold production hub at the Bottle Creek mine site.

Note: See Quinns and Mt Ida South Mineral Resource Inventory in ARS ASX Announcement, 16th January, 2018: http://www.abnnewswire.net/press/en/91683/

To view tables and figures, please visit:
http://abnnewswire.net/lnk/715J4BR7


About Alt Resources Ltd

Alt Resources LtdAlt Resources Limited (ASX:ARS) is an Australian based mineral exploration company that aims to become a gold producer by exploiting historical and new gold prospects across quality assets and to build value for shareholders. The Company's portfolio of assets includes the newly acquired Bottle Creek gold mine located in the Mt Ida gold belt, the Paupong IRG Au-Cu-Ag mineral system in the Lachlan Orogen NSW, Myalla polymetallic Au-Cu-Zn project east of Dalgety in NSW and the Mt Roberts gold project located near the town of Leinster in WA.

Alt Resources, having acquired historical and under-explored tenements in the Mt Ida Gold Belt, aims to consolidate the historical resources, mines and new gold targets identified within the region. Potential at Mt Ida exists for a centralised production facility to service multiple mines and to grow the Mt Ida Gold Belt project to be a sustainable and profitable mining operation.

    


Contact

James Anderson
CEO Alt Resources Ltd
E: james.anderson@altresources.com.au

Peter Taylor
Investor Relations
E: peter@nwrcommunications.com.au
M: +61-412-036-231



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