Alt Resources Ltd: Further high-grade historical gold intercepts at the un-mined Southwark Gold Deposit, Bottle Creek
Thursday, Dec 07, 2017
Alt Resources Ltd (ASX:ARS) (Alt or 'the Company') is pleased to provide the outcomes of an ongoing review of historical drilling data from the Bottle Creek Gold Mine in WA. The Company is continuing to compile and digitise the extensive historical dataset for the area, with an immediate focus on un-mined gold mineralisation such as Emu and Southwark. Broad, high grade ore shoots at these deposits present immediate walk-up targets for exploration drilling and resource development at Bottle Creek. Grades up to 28.0 g/t Au are reported from historical drilling at Southwark, alongside broad, consistently graded intercepts such as 16m @ 2.1 g/t Au. The latter hole ended in mineralisation at 56m depth. Reported intercepts are shallow, hosted within an ~80m deep lateritic zone.

HIGHLIGHTS:


- Historical drilling shows high grade ore shoots at the un-mined Southwark deposit

- Extends the known un-mined mineralisation continuously 3 km north of the VB pit

- Significant historical intercepts from sections of the Southwark deposit include:

o 10m @ 6.2 g/t Au

o 2m @ 7.2 g/t Au

o 11m @ 4.7 g/t Au (EOH), including 4m @ 10.8 g/t Au

o 4m @ 8.6 g/t Au

o 2m @ 10.4 g/t Au

o 10m @ 12.1 g/t Au, including 4m @ 22.5 g/t Au

o 6m @ 4.4 g/t Au

o 6m @ 9.3 g/t Au

o 10m @ 4.5 g/t Au (EOH)

o 6m @ 8.1 g/t Au, including 2m @ 10.6 g/t Au

o 16m @ 6.1 g/t Au, including 2m @ 28.0 g/t Au

o 14m @ 3.7 g/t Au (EOH)

o 4m @ 13.3 g/t Au (EOH)

- Many holes ended in mineralisation

- Drilling to confirm historical intercepts and develop a mineral resource at Southwark willcommence in March, 2018.

Alt executed a binding Option to Purchase Agreement for the Bottle Creek Gold Mine on the 3rd November, 2017. Drilling is scheduled to commence in March 2018 to validate historical drilling and progressively bring the Bottle Creek resource into JORC compliance. The Company will undertake a minimum of 8,000m of reverse circulation (RC) drilling, with a focus on the un-mined Emu, Southwark and XXXX deposits, north of the VB and Boags pits.

Regional Setting and Exploration History

The Bottle Creek gold mine lies 100 km north east of Menzies in the Mt Ida gold belt. The gold mine is located on the northern extremity of the Mt Ida-Ularring greenstone belt extending from Davyhurst to Mt Alexander. The Ularring greenstone belt forms the western part of the Norseman-Wiluna Province of the Yilgarn Craton. 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 was discovered by Electrolytic Zinc Company of Australasia (EZ) in 1983, who passed management of the project to Norgold Limited (Norgold) in 1985. Norgold managed the project through to production. Ore was treated onsite in a CIP Circuit, producing 90,000 oz Au over an 18 month period from 1988-1989 from two open pits. Significant drilling was undertaken by EZ and later by Norgold along a 9.8 km strike length from 1984 to 1989. RC drill fences at 100m spacing were carried out, with infill drill line spacing at 50m and 25m at various locations. The majority of drilling targeted oxide mineralisation, and 80m vertical below surface.

Mineralisation at Bottle Creek is strongly weathered, with a regolith profile to a depth of ~80m. Gold mineralisation is enriched through supergene processes in the oxide zone, and this oxide ore was the target of previous miners.

Southwark Historical Drilling

The Bottle Creek gold mine included production from the VB and Boags pits between 1988 and 1989. Extensive drilling undertaken by EZ and Norgold resulted in the delineation of historical resources at the Emu and XXXX deposits, immediately north of the open pits, as well as definition of mineralisation (without a resource estimate) at Southwark. Drilling was to a nominal depth of around 80m, and targeted oxide mineralisation. A small number of drillholes targeted sulphide mineralisation at depth (e.g. EMU-385-PD, EMU-387-PD and EMU-388-PD, described below). Intensive drilling was also carried out over a gold-enriched laterite zone within the Southwark zone.

A review of the historical data reveals promising gold and silver intercepts at the southern and northern ends of the Southwark deposit. Significant intercepts from these areas include:

- 10m @ 6.2 g/t Au from 81m

- 2m @ 7.2 g/t Au from 39m

- 11m @ 4.7 g/t Au from 75m to EOH,
o including 4m @ 10.8 g/t Au from 75m

- 4m @ 8.6 g/t Au from 37m

- 2m @ 10.4 g/t Au from 6m

- 10m @ 12.1 g/t Au from 54m,
o including 4m @ 22.5 g/t Au from 54m

- 6m @ 4.4 g/t Au from 66m

- 6m @ 9.3 g/t Au from 52m

- 10m @ 4.5 g/t Au from 76m to EOH

- 6m @ 8.1 g/t Au from 50m,
o including 2m @ 10.6 g/t Au from 50m

- 16m @ 6.1 g/t Au from 63m,
o including 2m @ 28.0 g/t Au from 71m

- 14m @ 3.7 g/t Au from 68m to EOH

- 4m @ 13.3 g/t Au from 73m to EOH

The historical drillhole spacing is 30m between drillhole lines in the southern portion of the deposit. This spacing increases to 100m between drillhole fences in the north of the deposit area, in spite of some promising intercepts in that zone. The northern zone in particular represents an excellent opportunity for Alt Resources to potentially extend and expand mineralised zones during drilling planned for March 2018.

Alt Resources is scheduled to commence drilling at Bottle Creek in March, 2018, pursuant to the terms contained in the Option to Purchase Agreement for Bottle Creek. Drilling will aim to confirm historical intercepts and increase the current confidence in historical data. The data is considered to be reliable, however insufficient QAQC measures were included in the historical drilling, sampling and analytical procedures to be able to bring the deposit to a modern JORC compliant resource. Alt's drilling program will then aim to infill the existing drill sections to further increase confidence in the resource estimate.

The significant intercepts described in this release are representative, and do not include all of the significant intercepts included in historical data from the Southwark deposit. In this release, the Company is attempting to illustrate to shareholders the gold grades present at Southwark, and their continuity between drill sections. The Company considers the historical work by EZ and Norgold to be of generally high standard and reliability, and an excellent starting point on which to base modern exploration and develop a growth strategy for Bottle Creek.

For more information, please visit: https://www.altresources.com.au

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