New mining leases have been granted to Alto Metals Ltd (ASX:AME) over the Bull Oak and Indomitable camps at the Sandstone Gold Project in Western Australia.
The granting of these leases by the WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) bolsters Alto’s resource base and supports continued exploration and development at the project.
Consolidating existing resources
The leases, M57/663 and M57/665, consolidate existing resources and historical workings, further de-risking the project and providing flexibility for future mining operations.
Indomitable camp contains an indicated and inferred mineral resource of 210,000 ounces at 1.2 g/t gold, while Bull Oak hosts an inferred mineral resource of 65,000 ounces at 1.1 g/t gold.
The total independent mineral resource estimate for Sandstone stands at 17.6 million tonnes at 1.5 g/t gold for 832,000 ounces, within optimised pit shells at a gold price of A$2,500 per ounce, capturing more than 80% of the unconstrained estimate of 23.5 million tonnes at 1.4 g/t gold for 1.05 million ounces.
Managing director and CEO Matthew Bowles said: “With fieldwork about to re-commence at our high-grade Lightning and Vanguard prospects, in preparation for first pass drilling, we are pleased to announce that our applications for new mining leases over the Bull Oak and Indomitable camps have been granted.
Optionality maintained
“Importantly, securing these mining leases further de-risks the Sandstone Gold Project and complements our strategy to maintain optionality for future development scenarios.
“I would like to thank our in-house team on their work to successfully secure these new mining leases and the DEMIRS for the support of the Sandstone Gold Project in granting these new leases.”
Upcoming exploration efforts will focus on near-term resource growth within the Alpha domain and high-impact regional exploration.
Ahead of first-pass reverse circulation drilling at the Lightning and Vanguard prospects, soils and field work will restart shortly, along with step-out drilling at Bull Oak to follow up the recently announced exploration target.
The company awaits assays from sampling work at the high-grade Lightning and Bollinger prospects, the latter north of Indomitable.
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