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Alto Metals (ASX:AME) reports high-grade gold recoveries at Sandstone Gold Project

Mining
ASX:AME
05 October 2020 09:45 (AEDT)

Test work at Alto Metals’ (AME) Sandstone Gold Project has indicated an average recovery rate of 96 per cent gold from the Lord Nelson zone.

In August this year, the company collected four drill samples from a primary zone of mineralisation, grading between three and 11 grams per tonne of gold.

These samples were submitted to Intertek Genalysis for Accelerated Cyanide Leach testing, which assessed the potential gold recovery in metallurgical processes and circuits.

While the testing was preliminary and additional work will be required, all four samples reported at least 95 per cent gold recovery, with an average recovery of 96 per cent. This suggests that the gold within the Lord Nelson primary zone of mineralisation is amenable to conventional cyanide extraction methods.

An additional sample was collected from oxide zone mineralisation at Lord Nelson and submitted to Intertek Genalysis for the same analysis, which returned a gold recovery of 82.5 per cent.

Alto Metals says that these results are more or less in line with previous expectations, based on the historic performance of the Lord Nelson mine, which had a reported recovery rate of between 93 and 96 per cent.

Matthew Bowles, Managing Director of Alto Metals, said the promising results support those seen at the company’s other deposits.

“The excellent gold recoveries achieved from recent preliminary cyanide leach testwork at Lord Nelson, complements the high gold recoveries at our other deposits and those reported for Lord Nelson from previous metallurgical testwork and historical processing records by Troy Resources,” he said.

Alto Metals now intends to carry out an initial 5,000 metres of a larger 30,000-metre drill program, which is expected to begin this week.

The program is supported by a private placement with firm commitments of $5.5 million, and will focus on the entire three-kilometre Lords’ Corridor, along with a number regional targets within the broader 800-square-kilometre Sandstone Gold Project.

Alto Metals (AME) closed 5.43 per cent in the red for 8.7 cents each.

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