Annual Report to Shareholders
Letter from the Chairman
I would like to take this opportunity to thank you for your continued support of the Company and the exploration and development projects we hold.
This time last year the Board and Executive undertook a review of operations and our portfolio of assets and as part of this process defined a strategy to transform the Company from an exploration operation to a near term emerging gold developer.
Over the past 12 months we have implemented the strategy, firstly acquiring the Bottle Creek Gold Project located in the Mt Ida gold belt in the northern goldfields of WA via an Option to Purchase Agreement. The Bottle Creek mining leases were the key strategic asset in the Mt Ida area and upon securing these assets it enabled the successful negotiation to acquire the significant package of tenements surrounding Bottle Creek mining leases from ASX listed Latitude Consolidated Limited, creating the Mt Ida Gold Project covering an area of 360 square kilometres.
Drilling at Bottle Creek commenced in March 2018 delivering consistent outstanding high grade gold and silver results across the project area which has been very evident in the company reporting of exploration results to the ASX confirming our view that Bottle Creek is an extremely robust high quality asset.
Since the acquisition of Bottle Creek we have produced the first maiden resource from Bottle Creek of 110,000oz of Au and 650,000oz of Ag adding to the existing Mt Ida resources of 97,000oz Au. The staff have delivered this result in less than 5 months and at a cost of under $10.00 per resource ounce which is an outstanding effort. Additionally we have recently completed a second stage of RC drilling at Bottle Creek that in the near future will provide a resource upgrade which will be announced when completed.
More importantly we have delivered approximately 75,000oz of 110,000oz in the indicated category which at optimization will then fall into the probable category as an ore reserve in a mining cycle, creating significant uplift in value as the project progresses.
The Board and Executive of the Company remain aligned with our shareholders in that we are all shareholders in the Company. The Directors and Executive all accept shares in lieu of reduced cash payments for their service.
Our focus over the next 12 months is to progress the Bottle Creek and Mt Ida Gold Project into a development project with particular emphasis on expanding the gold resources to a level that will sustain a 500,000 ton per annum processing plant for a minimum of 5 years. The Company will fast track and expand operations at the Bottle Creek and Mt Ida projects in WA and will continue to evaluate gold opportunities in this state. WA is recognised as one of the top 3 jurisdictions globally to operate mining and exploration and Australia is the second largest gold producer.
The Company intends to undertake an independent valuation of the Paupong project in 2019 and may offer the project up for larger companies to vend into the project. The Board and geological staff consider that the Paupong IRG system is a large scale project with potential for significant mineral system discovery.
The Company has a dedicated team of exploration staff who are integral in the success of our projects and their development. We are a small Company delivering some very good results with limited resources and I would like to take this opportunity to thank them for their hard work over the past year.
I take this opportunity to welcome Mr Andrew Sparke to the Board of the Company as Executive Director of Corporate Finance. The Board is confident that his knowledge and experience will be of great value to our company in our transition to an emerging gold developer.
We look forward to an exciting future with our projects and recent acquisitions and to your continued support.
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About Alt Resources Ltd
Alt 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.
Alt Resources, having acquired the Bottle Creek Gold Mine and 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.
Alt Resources Ltd