Alt Resources announces first results from the RC drilling program
Tuesday, May 01, 2018
Alt Resources Ltd is pleased to announce the first results from the RC drilling program at the Southwark deposit, Bottle Creek Gold Project, WA. Southwark lies 1 km to the north of the Emu deposit and the first results indicate continuity of the broad gold zones encountered at Emu. Gold assays have been received from drillholes SWKRC001 to SWKRC018 with individual assays up to 65.6 g/t Au. High grade gold zones occur within and alongside broad, consistently graded zones such as 23m @ 3.1 g/t Au. These broad zones are a positive feature for potential future mining operations, ensuring a minimal 'nugget' effect and a more easily extracted bulk target.

HIGHLIGHTS:

- Results from first modern drilling at Southwark indicate significant gold zones

- 3200 metres of RC drilling for 44 holes completed at Southwark with all samples despatched for assay

- Significant intercepts from Southwark include:

o 13m @ 11.1 g/t Au, including 7m @ 18.9 g/t Au

o 11m @ 8.5 g/t Au, including 5m @ 16.6 g/t Au

o 13m @ 6.4 g/t Au, including 3m @ 12.7 g/t Au

o 9m @ 5.6 g/t Au, including 4m @ 9.0 g/t Au

o 6m @ 5.3 g/t Au, including 2m @ 14.4 g/t Au

o 23m @ 3.1 g/t Au, including 12m @ 4.3 g/t Au

o 13m @ 3.1 g/t Au, including 4m @ 6.4 g/t Au

- Broad gold zones at southern margin of Southwark indicate mineralisation is open along strike and at depth

- High grade gold shoots identified with several holes ending in mineralisation

- Consistent gold grades intercepted in the laterite cap above Southwark mineralisation

The initial results from Southwark demonstrate that mineralisation is open to the south, with the southernmost line of drilling including drillhole SWKRC005, with 23m @ 3.1 g/t Au. This broad zone of gold mineralisation has not been closed off at depth or by either modern or historical drilling to the south. Continuity of the mineralisation is evident in the next section to the north. In addition, mineralisation appears to be broadening with depth, and several holes were found to end in mineralisation.

Drilling at the un-mined Southwark deposit has been completed, for a total of 3,200m. Approximately 1,300 assayed metres are included in this announcement. The concluding stage of the RC drilling program is currently underway at the Emu deposit, ahead of resource modelling. This phase of RC drilling at Bottle Creek will be completed on the 7th May, 2018; well ahead of schedule and within budget. Alt will have completed in excess of 12,000m of RC drilling in 7 weeks.

Alt CEO James Anderson said; "The Southwark drilling is returning some solid results, with grades and widths that are consistent with the Emu deposit. The project has significant extra scope, considering that we are drilling only two mineralised zones over 1,000m, whereas the Bottle Creek strike length is around 7 to 8 kilometres. Southwark is shaping up to be another shallow asset with excellent gold grades and possible open-pit potential. The new drilling we've completed shows that it has been poorly tested in the south. We have excellent results, including over 20m at 3 g/t gold, in our southernmost drill fence. This is definitely an area we will be drilling in the future. The Southwark deposit is 1,000 metres from the northernmost drill fence we've completed at Emu. Historical drilling between the two has not sufficiently tested the extent of mineralisation, as we've seen. This makes the ground between Southwark and Emu quite prospective."

Significant gold intercepts from Alt's new drilling at the un-mined Southwark deposit include:

- SWKRC001: 1m @ 5.8 g/t Au from 41m

- SWKRC003: 1m @ 3.8 g/t Au from 52m

- SWKRC004: 10 @ 1.6 g/t Au from 68m

- SWKRC005: 23m @ 3.1 g/t Au from 79m

o including 12m @ 4.3 g/t Au from 81m

- SWKRC006: 2m @ 1.1 g/t Au from 20m

o and 1m @ 2.7 g/t Au from 29m

- SWKRC007: 6m @ 5.3 g/t Au from 53m

o including 2m @ 14.43 g/t Au from 54m

- SWKRC008: 2m @ 1.4 g/t Au from 5m

o and 1m @ 7.0 g/t Au from 50m

o and 4m @ 1.9 g/t Au from 55m

- SWKRC009: 1m @ 1.0 g/t Au from 72m

- SWKRC010: 8m @ 1.4 g/t Au from 79m

o and 2m @ 1.4 g/t Au from 92m

- SWKRC011: 8m @ 1.2 g/t Au from 31m

- SWKRC013: 12m @ 2.2 g/t Au from 20m

o and 13m @ 3.1 g/t Au from 50m

o including 4m @ 6.4 g/t Au from 51m

- SWKRC014: 9m @ 5.6 g/t Au from 71m

o including 4m @ 9.0 g/t Au from 73m

- SWKRC015: 6m @ 2.2 g/t Au from 3m

- SWKRC016: 13m @ 11.1 g/t Au from 53m

o including 7m @ 18.9 g/t Au from 57m

o including 1m @ 65.6 g/t Au from 61m

- SWKRC017: 10, @ 1.1 g/t Au from 1m

o and 11m @ 8.5 g/t Au from 51m

o including 5m @ 16.6 g/t Au from 56m

- SWKRC018: 13m @ 6.4 g/t Au from 73m

o including 3m @ 12.7 g/t Au from 79m

Mineralisation at Southwark shows the same structural and lithological setting as that encountered at Emu. The 'mineralised zone' is hosted within a black shale sequence and dips steeply to the south-west. The host rock is interpreted to be a quartz-sericite schist, discussed in more detail in the section below.

In Alt's previous announcements for the Bottle Creek project, the geology had been interpreted in line with that described in detail in historical reports. As part of our new intellectual ownership of the project, Alt commissioned a petrographic study of key rock types, to generate greater understanding of the key lithologies associated with mineralisation. Preliminary results from that study suggest that the country rock surrounding the mineralised black shale unit is not a quartz porphyry, as described by historical explorers. Instead, microscopic analysis suggests a metamorphosed quartz-sericite schist with quartz phenocrysts. This rock type has a sedimentary, rather than igneous origin as previously thought. Alt will be conducting further analysis to understand the Bottle Creek geology in more detail.

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.

During historical operation from 1988-1989, 90,000 oz Au was produced from two open pits. Significant historical drilling along a 9.8 km strike outlined the Emu, Southwark and XXXX deposits. However these were never mined. The historical RC drill fences were spaced at 100m, with infill drill line spacing at 50m and 25m at various locations. The majority of drilling targeted oxide mineralisation and reached no deeper than 80m vertically below surface.

Alt's new drilling results continue to provide confirmation of historical intercepts, improve confidence in historical data, proves the continuity and grade of mineralisation in key parts of the Emu deposit. Further, gold mineralisation appears to continue at depth, with several drillholes ending in mineralisation. Additional drillholes are being planned at Emu and other areas of the Bottle Creek Project to test the continuity of gold mineralisation at depth. RC drilling for resource definition is ongoing.

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

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