Alto Metals Ltd (ASX:AME) has delivered an updated exploration target for the Bull Oak gold deposit, part of its flagship Sandstone Gold Project in Western Australia, following recent successful extensional drilling aimed at rapid near-term resource growth.
The new conceptual exploration target of 5.6-10.9 million tonnes at 1.0-1.3 g/t gold for 250,000 to 360,000 ounces of gold includes a current MRE of 65,000 ounces at 1.1 g/t gold within a single A$2,500 pit shell.
This has been modelled based on the recent 2023 drilling campaign comprising 18 RC holes across 2,364 metres and which defined extensions of mineralisation along strike and at depth.
Large open-pit resource
The Sandstone Gold Project currently hosts an open-pit gold resource of 17.6 million tonnes at 1.5 g/t gold for 832,000 ounces.
This resource is constrained within A$2,500/oz pit shells, capturing more than 80% of the total unconstrained mineral resource estimate (MRE) of 23.5 million tonnes at 1.4 g/t gold for 1.05 million ounces.
Potential for near-term growth
The updated exploration target highlights the potential for significant resource growth.
Alto's exploration strategy is focused on near-term resource growth within the Alpha domain and high-impact regional exploration.
Preparations are underway for the next phase of reverse circulation (RC) drilling at Bull Oak, set to commence in the coming weeks, alongside ongoing regional exploration efforts.
Next steps include a 5,000-metre RC drilling program to test the extensions of mineralisation at Bull Oak and validate the exploration target, with plans to update the mineral resource estimate by the second half of 2024.
Alto managing director and CEO Matthew Bowles said: “Given the amount of historical drilling at Bull Oak and success of the extensional drill program at Bull Oak at the end of 2023, defining repeat lodes along strike and both up and down dip, now over 400 metres and remaining open, we are in the fortunate position of being able to calculate a considerable exploration target that demonstrates the upside potential of this intrusion-related deposit.
Target (NYSE:TGT) well supported
“The exploration target uses parameters from the recent Bull Oak MRE estimate and outlines extensions of that deposit based on the recent drilling as well as geological and structural interpretation.
“We believe the exploration target of 250,000-360,000 ounces at 1.0-1.3 g/t gold has been calculated on a conservative but justifiable basis and is well supported by both drill intercepts and the continuity of mineralisation observed throughout the deposit.
“Outside of the exploration target, where drilling is currently limited, we see additional tonnage and grade potential. The purpose of the exploration target is to highlight where we see near-term growth.
“We believe this can be achieved through the success of our planned drilling campaign, which will be an excellent outcome for shareholders.
“Taking the exploration target into consideration with the additional intrusive gold targets in the area illustrates the scalable potential of the Bull Oak Camp.”