The company believes these rights will help meet its goal of delineating more than 1 million ounces at the project.
() is acquiring the surface prospecting rights at its Sandstone Gold Project in the East Murchison Mineral Field of Western Australia.
The owner of the 2-metre Prospecting and Fossicking Rights, Sandstone Exploration Pty Ltd, has agreed to sell the rights to Alto for consideration of 3 million ordinary fully paid shares in the company.
These rights enable the owner to prospect and fossick for gold down to 2 metres depth from surface.
Alto believes that the rights to shallow gold at Sandstone will help meet its goal of delineating more than 500,000 ounces at the project this year and eventually 1 million ounces.
Such a resource could become the basis for re-establishment of standalone oxide and primary gold mining and milling operations.
Alto’s director Dermot Ryan said: “The Sandstone area is well known for its significant deposits of alluvial and specimen gold.
“The purchase of the 2-metre Prospecting and Fossicking Rights will give Alto control over and the right to extract any shallow gold deposits discovered on its tenements.”
Completion of the agreement is expected to take place shortly and the 3 million new shares will be voluntarily escrowed for a period of six months from date of issue.
The consideration shares will be issued under Alto’s Listing Rule 7.1 capacity and the company will apply to the ASX for official quotation.
Alto holds about 800 square kilometres of the prospective Archaean Sandstone Goldfield, 600 kilometres north of Perth.
Since acquiring the project in June 2016, Alto has compiled and reviewed a large legacy database ahead of a series of focused exploration and drilling campaigns which began in late-2016.
To date, the company has defined a gold resource of about 4.9 million tonnes at 1.7 g/t for 261,000 ounces of contained gold across the project.
It is working on JORC 2012 resource estimates for three deposits – Ladybird, Havilah and Sandstone North – after revealing maiden resources at the Indomitable and Vanguard Camp deposits a few months ago.
As part of this work, RC drilling is planned this year at Indomitable, Vanguard and Lord Nelson while aircore drilling is also planned for earlier stage exploration areas.