The company considers the offers from Middle Island Resources Ltd (ASX:MDI), Goldsea Australia Mining Pty Ltd and Habrok Mining Pty Limited are a clear endorsement of the long-term value potential of the project and extensive 800 square kilometre tenure.
The current unsolicited, unconditional cash takeover offer from Habrok Mining Pty Limited is for 6.6 cents per share and Altos board has recommended shareholders reject the offer.
Drilling to date
The Sandstone Project between the Youanmi and Edale Shear Zones is surrounded by multi-million-ounce gold deposits and producing gold mines in the East Murchison of Western Australia.
Historically the project has produced over 1.3 million ounces of gold since the 1890s and has a mineral resource estimate of 6.2 million tonnes at 1.7 g/t for 331,000 ounces, however, the focus was on near-surface oxide material with very little drilling below 100 metres.
Alto has started an initial 2,000 metres infill and step-out program at Lord Nelson, which is part of an extensive 10,000 metres exploration program planned for the project.
On May 27, 2020, the company increased the total indicated and inferred mineral resource to 6.2 million tonnes at 1.7 g/t for 331,000 ounces and updated the JORC 2012 inferred mineral resource to 1.8 million tonnes at 1.9 g/t gold for 109,000 ounces.
The company has received three unsolicited takeover bids.
Potential beneath pit
There is high-grade gold potential both along strike and beneath the historic Lord Nelson pit with recent drill results from shallow mineralisation 200 metres to the south of the pit including:
- 10 metres at 4.1 g/t from 34 metres, including 2 metres at 12 g/t from 36 metres;
- 12 metres at 3.4 g/t from 66 metres, including 2 metres at 8.2 g/t from 70 metres; and
- 23 metres at 3.8 g/t from 106 metres.
In addition, a new zone of deeper primary mineralisation returned results of:
- 16 metres at 5.2 g/t from 240 metres, including 3 metres at 13.5 g/t from 240 metres; and
- 17 metres at 3.5 g/t from 200 metres, including 4 metres at 11.6 g/t from 211 metres.
At the Lords Mining Camp, historical production of more than 250,000 ounces and was only mined to shallow depths of 50-80 metres, with existing resources remaining open along strike and down plunge.
Alto believes there is potential for Lords style repeat targets along a 3-kilometre-long mineralisRead More – Source