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July 2018 - Alto Metals Ltd

Advancing Towards Production : An Update based on a June 2018 Visit to AME’s Sandstone Project

  • ERA visited Alto Metals Ltd’s (AME’s) Sandstone Gold Project (that covers most of the ~35km x ~35km Sandstone Goldfield in early June 2018 to review the progress made since our last report dated 25 July 2017. Since that report at 8c the share price rose to ~11c in August 2017 and had been volatile mostly between ~6c & 8.5c since then, with some recent selling dropping it through 6c to 4.6c, despite positive achievements. The number of shares on issue increased in Oct & Dec 2017 based on a 21.3m in share placements and a 12.2m SPP at 7.5c that resulted in its current level of 185.5m shares on issue (plus 25m vendor perf shares and 6.8m perf rights) for a ~$9m mkt cap at 4.6c. During the year there was a change of Non-Exec Chairman to Terry Streeter, CFO/Co Secretary to Pat Holywell, & Non-Exec Director Stephen Stone resigned. Alto Metals is currently rated by ERA as a SPEC BUY with a target of >A$0.10.
  • Similar to a number of other gold companies (eg Gold Road), Alto has taken ~2 years to take the geology of its mostly wholly owned Sandstone goldfield back to basics and rebuild it from Figure 1a to its current state of Figure 1b, with materially less ultramafic, moving forward and making potential discoveries being :
  • Vanguard and Indomitable Camps – both growing with a number of encouraging intersections and stacked ore shoots. It is this growth that has led to both Vanguard and Indomitable being in resource calculation (expected to be reported by the end of December 2018).
  • In tandem with the progress at Indomitable, an ML application has been lodged over the Indomitable Camp (barring anything materially unforeseen, applications typically take ~6months),
  • Hence a Scoping study has begun reviewing the ability of the Indomitable Camp to be brought into production (possibly through a third party’s operating plant) as an SMP (small mining project), to generate cashflow for exploration. [Note : such projects have proven very profitable for Southern Gold (over Cannon, possibly ~$15m in JV with Westgold) and Intermin (over Teal possibly ~$8m in a JV)].
  • The identification of a number of >50ppbAu anomalous areas using soil sampling, some of which clump together to become ~1km x 1km at possibly >200ppb, amongst a broader area at Hancocks, together with mined laterite areas in the ~3km x 3km Bull Oak vicinity.
  • A number of anomalous areas have been identified in the regional soil sampling programme in addition to Hancocks, such as Valiant, Superb and Edale, plus other areas of interest (such as Bulletin or Maninga Marley/Havilah as seen in Fig 2b), with many assay results still to be received.
  • Alto has also made material progress in possibly generating an SMP over Oroya with unmined Au intercepts below & west of the pit, such as 4m at 12.3g/t, 7m at 6.8g/t & 12m at 3.4g/t.

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July 2018 - Alto Metals Ltd

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  • Written by: Keith Goode
  • Monday, 30 July 2018