Acquisition of Mt Ida and Quinns Projects from LCD
- Alt acquires 300 km2 exploration package adjacent to and surrounding the Bottle Creek Gold Mine, Mount Ida, WA
- New tenement packages include the Quinns and Mt Ida South projects
- 58 km long near-contiguous package along major mineralised structures
- Package contains existing JORC 2012 resources of 1.24Mt @ 2.5 g/t Au (97,300 oz Au)
- Numerous historical workings with multiple shallow walk-up drill targets
Alt has entered into a binding Heads of Agreement (HOA) with Latitude Consolidated Ltd (ASX:LCD) (LCD) to acquire the Quinns and Mt Ida South Projects (currently held 100% by LCD), as well as LCD's interest in the Mt Ida JV (currently held 80% by LCD). The exploration package fully encompasses the Bottle Creek mining leases, thus considerably expanding Alt's landholding in this area, and opening up significant exploration and development potential for the Company and shareholders.
Alt CEO James Anderson commented
"The addition of the Mt Ida South and Quinns assets is very significant for the Company. The expansion of Alt's portfolio through this acquisition as well as the recent Option to Purchase agreement by the Company for the Bottle Creek Gold Mine (see Note 1 below) is in-line with the Company's strategy to work towards becoming a gold producer. The Mt Ida South and Quinns Projects contain 97,000 JORC compliant gold ounces in satellite ore bodies. These are very accessible to the Bottle Creek Gold Mine site and when coupled with known mineralisation at Bottle Creek, the Company views the area to have the potential to support sufficient mining production for a processing plant on the existing Bottle Creek mining leases.
The project now has significant scale to warrant further development of known resources. Previous miners have been held back from development in this area of the Mt Ida gold belt because there is no processing plant in the immediate vicinity. Alt considers the Bottle Creek Mine site to be the ideal location to establish a CIP plant to process the Bottle Creek and the surrounding LCD ore bodies."
Terms of Agreement
Under a binding agreement executed between Alt and Latitude Consolidated Ltd, Alt will meet the following conditions in order to acquire LCD's interests in the Quinns, Ida South and Mt Ida JV Projects.
- make a cash payment of $400,000 to LCD within 7 days of signing the Heads of Agreement
- issue $750,000 in tradeable fully paid ordinary ARS shares, being 12,500,000 shares at a deemed price of $0.06 per share with a voluntary escrow period of 6 months from the date of completion. The issue of ARS shares pursuant to the acquisition of the LCD assets may be subject to shareholder approval
- grant $250,000 of options over fully paid ordinary ARS shares, being 3,125,000 options, with each option having an exercise price being 8 cents per share and exercisable for 3 years from date of issue
- make a cash payment of $600,000 to LCD on or before the 30th March, 2018
The Project area lies approximately 80 km north west of Menzies in the Mt Ida gold belt (see Figure 1 in link below), and is located on the northern extremity of the Mt Ida-Ularring greenstone belt extending from Davyhurst to Mt Alexander (figure 1 in link below). The Ularring greenstone belt forms the western part of the Norseman-Wiluna Province of the Yilgarn Craton.
The Mt Ida exploration package encompasses the Mt Ida and Ballard Faults (see Figure 2 in link below). The Mt Ida Fault and associated splays host mineralisation at the Bottle Creek Gold Mine, for which Alt Resources has signed a binding Option to Buy Agreement (see Note 1 below). The Mt Ida Deposit (Eastern Goldfields Ltd) is also directly adjacent the new project area, and boasts a resource of 128,000 oz Au (0.26 Mt @ 15.4 g/t Au). The average grade at Mount Ida Mine is 17 g/t Au.
The Ballard Fault and associated splays is host to a near-continuous mineralised sequence, including known JORC resources at the Quinns Project (including the Matisse and Quinn Hills deposits, and the Quinns Mining Centre) in the north, and the Mount Ida South Project (including the Spotted Dog and Tim's Find deposits) in the south (see Figure 2 in link below). These known resources comprise a total of 1.24 Mt @ 2.5 g/t Au for 97,300 oz Au (see Note 2 below) (see Table 1 in link below). In addition, numerous historical prospects and workings exist along the mineralised trend, and represent excellent shallow, walk-up drill targets.
Tim's Find is a shallow gold resource over 1,000m in strike length, and containing 31,000oz Au, within 0.36Mt @ 2.54 g/t Au (Indicated; see Table 1 in link below). The resource is interpreted to be open along strike and down dip, and has only been drilled to approximately 50m depth, with no previous mining.
Quinn's Mining Centre comprises the Boudie Rat and Forrest Belle shallow historical open pits (to no deeper than 25m) as well as Forrest Belle, Boudie West, Boudie Beach and Belvidere. These resources contain 36,200oz Au, within 0.43Mt @ 2.7 g/t Au (Measured, Indicated and Inferred; see Table 1 in link below). The resource is open along strike and between pits. At Quinn Hills a resource of 3,800oz @ 5.74 g/t Au (Indicated) was defined by previous explorers2. Very little drilling has been conducted at Quinn Hills, and the resource remains open at depth.
Notes to accompany Mineral Resource Statement for Quinns and Mt Ida South
- The Mineral Resource estimates by LCD are classified as Measured, Indicated and Inferred based on data density, data quality, confidence in the geological interpretation and confidence in the estimation.
- Drill hole data used by LCD in the Quinns and Mt Ida South Mineral Resource estimation is comprised predominantly of RC and diamond holes. o Drill hole spacing ranges from 200m X 20m to 10m X 5m.
- All RC drill hole collar locations were surveyed by DGPS with expected accuracy (XYZ) of +/- 0.1 metre.
- All recent drilll holes were routinely surveyed downhole using appropriate techniques. Drill core and chips was logged (lithology, alteration, structure, mineralization, veining) in detail then stored and validated in electronic databases.
- Gold analysis of the samples was undertaken by reputable laboratories using fire assay techniques. Only the assay results from RC, aircore or diamond drilling was used for the grade estimation. RAB holes were used to check and confirm the interpretation.
- Industry standard reference material and duplicates were utilised to check on laboratory assay quality control with no issues identified. Assays were composited to 1 metre lengths and grades were estimated with and without an appropriate upper cut (20g/t Au).
- A bulk density of 2.60g/cm3 was applied to all fresh material and a bulk density of 2.00g/cm3 was applied to any oxide mineralisation. These numbers were based on ISBD data from historic work and local knowledge of the mineralisation type. Oxidation profiles based on detailed geological logging has been used for the determination of the various oxide boundaries.
- Based on wire-framing to drill holes on a 0.50g/t Au cut-off with a nominal one metre skin of external dilution.
- The grade estimation method was Inverse Distance Cubed (ID3) of drill hole values lying within validated wireframes (solids) with only the numbers from the individual wireframes/solids used for the interpolation.
- Parent block sizes were set at 2m (x), 5m (y) and 2.5m (z), with the sub-cell size down to half of the parent cell size.
- The Mineral Resource estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the estimation. The Mineral Resources extends to a maximum of approximately 150 metres below natural surface with an average depth of approximately 100 metres.
1. See ARS announcement, 8th November, 2017: http://abnnewswire.net/lnk/QCE95126
2. See LCD announcement, 14th September, 2016: http://abnnewswire.net/lnk/3J073GG0
To view tables and figures, please visit:
About Alt Resources Ltd
Alt Resources Limited (ASX:ARS) is an ASX-listed resources company currently focussed on exploration and development of its Western Australian and NSW based precious and base metals projects including the Bottle Creek Gold Mine, the Mt Roberts gold project, the Paupong IRG mineral system and the Myalla massive sulphide project. Alt is strategically expanding its portfolio of assets in Australia with a mandate to become a gold producer generating increased shareholder value.
Link: LCD announcement, 14th September, 2016
Latitude Consolidated Ltd
Alt Resources Ltd