Alto Metals

MATTHEW BOWLES

MANAGING DIRECTOR

(ASX:AME)

◾ Company Name: Alto Metals ◾ Company ASX code: AME ◾ Key Commodities: Gold ◾ Key Personnel: Matthew Bowles, Managing Director | Richard Monti, Chairman | Mike Kammermann, Exploration Manager ◾ Locations: Sandstone, Western Australia ◾ Market Cap as of 15/08/22: $44.36M ◾ FY22 Share price range – Low/High: $0.055 / $0.115 ◾ Company Website: altometals.com.au

COMPANY PROFILE

Since the 19th Century, more than 1.3Moz has been mined from the rich golden veins of WA’s Sandstone district – half of that by Herald and Troy Resources in between 1994 and 2009.

But unlike Kalgoorlie, the Murchison and Leonora, Sandstone has seen little of the wealth generated through the current gold boom.

Now one company controls virtually all of the forgotten treasure that is the Sandstone gold district.

Located 600km north of Perth, Alto Metals (ASX:AME) boasts an impressive open-pit gold resource base of 12.4Mt at 1.6g/t for 635,000oz at Sandstone, largely defined by Alto itself in a series of drilling campaigns dating back to 2016.

Previous drilling had barely scratched the surface at Sandstone, wedged between the vaunted 6Moz Mt Magnet and 10Moz Agnew-Lawlers camps, with little exploration conducted beyond 100m depth.

Sandstone was previously explored for shallow oxide resources to feed the 1987 vintage Nunngarra Mill, the type of gold able to be extracted cheaply at a low gold price.

With gold prices rising above US$2000/oz twice in the past two years and advances in modern geological knowledge and exploration, Alto is confident of finding a gold bounty of 1-5Moz befitting Sandstone’s legacy as a major gold rush town.

This year Alto is ripping through 60,000m of drilling, encountering enormous success at its growing Indomitable Camp.

Step out drilling continues to extend mineralisation outside the known resource and remains open in all directions, currently defined over more than 2km of a 20km long gold corridor.

Recent results highlight the prospectivity of the camp, which currently holds 74,000oz of Alto’s 635,000oz resource.

They include a strike of 20m at 6.9g/t from just 35m, including a 1m interval at 97.8g/t from 38m (equivalent to more than 3oz to the tonne) and 10m at 3.2g/t from 69m, 10m at 2.8g/t from 27m and 4m at 9.1g/t from 83m, including 1m at 27.1g/t.

The drill results will be factored into a new mineral resource at Sandstone, due in Q4 2022, with assays from over 7000m of RC drilling at the Indomitable East target still to be received.

There is plenty of reason to be excited about that. In 2021, Alto completed 60,000m at Sandstone, more than the previous five years under the company’s ownership, and boosted its JORC resources by 92%.

Alto’s other major exploration focus is the 3km long Lords Corridor, a granodiorite hosting two historic high grade gold mines.

At the northern end of the Corridor is the Lord Nelson pit, which produced 207,000oz of gold at 4.6g/t and contains a current resource of 267,000oz at 1.6g/t.

Mineralisation of up to 67m at 2.3g/t from 172m and 48m at 3.4g/t from 214m has been found beneath Lord Nelson in this year’s program, with major gold lodes also uncovered at Orion and Juno, 200m and 400m to the south.

Alto MD Matthew Bowles said the recent June quarter had been another successful one for the $34m market cap gold explorer, which boasts an attractive EV/resource ounce ratio of just $49.

“Our major 60,000m drilling program for 2022 is progressing well and I have no doubt that our shallow gold resources will continue to grow, as we systematically explore this multi-million ounce gold field,” Bowles said.

KEY INVESTMENT HIGHLIGHTS

AUGUST 10, 2022: Alto reports stellar drill hits from its Indomitable Camp, including 20m at 6.9g/t from 35m and 1m at 97.8g/t from 38m, ahead of a resource upgrade. JULY 14, 2022: Alto hits high grade gold at Indomitable, part of a 60,000m drill program to expand the Sandstone gold project resource. OCTOBER 5, 2021: Alto makes Juno discovery in the Lords Corridor, 400m south of the 267,000oz Lord Nelson pit.