- A scoping study shows potential for a 500,000 tonne of ore per year mine at ALT’s Mt Ida project
- 181,200 ounces of gold and 937,800 of silver is expected to be produced over six years
- $30 million in funding is required for the development of the mine
- ALT’s share price has increased 17.24 per cent today, currently sitting at $0.034 per share
ALT Resources is on track to open a long life gold mine at its Mt Ida project, Western Australia.
The company recently completed a scoping study which demonstrated the potential for a 500,000 tonnes of ore per year open pit mine.
Whilst reviews of the site deemed it to be “financially robust and technically low risk,” ALT will require $30 million in funding to successfully develop the mine.
It is expected the mine will produce 181,200 ounces of gold and 937,800 ounces of silver over a six-year period. While earnings before interest, tax, depreciation and amortisation is placed at $102.2 million over the mine’s lifespan.
The study also projects a positive cash flow during the first year of production, with gold production at 30,000 ounces.
“I wanted to demonstrate to funders that a value proposition exists for investment whereby a smaller scale gold project can be developed and deliver solid returns with significantly less capital exposure and risk for funders,” CEO James Anderson said.
A feasibility study will be conducted to validate the findings of the scoping study. Results are expected by the end of the year.
If development goes ahead, the new mine will add potential to the company’s Mt Ida gold project. Also in WA, the company holds the Bottle Creek gold project and the Mt Roberts gold project.
ALT Resources’ share price has increased 17.24 per cent today, currently sitting at $0.034 per share.