Alto Is Jumbled With The Question Whether To Explore Or Develop

  • Nov 06, 2018 AEDT
  • Team Kalkine
Alto Is Jumbled With The Question Whether To Explore Or Develop

Alto Metals directors zeroed down on the explore option recently which settled the scene for some interesting corporate developments in the new year. For the past 100 years, Gold is the target of Alto (ASX: AME) as it has been for every explorer working in the Sandstone region of central WA.

Securing most of the ground around the historic mining center, Alto took on the Sandstone challenge in early 2016 in a process which change its name from Enterprise Uranium and also saw it drop uranium exploration assets. Located 600 km north-east of Perth, making sense of the geology around Sandstone has not been easy. 

Because the tiny town is surrounded by some of Australia’s biggest goldmines, the ground has generally given up relatively small pods of high-grade gold which can be a frustration. Despite a century of production, Sandstone, can only lay claim to around one million ounces.

It could hit the 500,000oz mark sometime in the next 6-to-12 months, if Alto’s recent rate of discovery continues. Alto has 261,000oz in a number of old and new deposits, as the resource base currently stands which is theoretically enough for a deal to be struck with a neighboring mine, Middle Island Resources, with an ore treatment deal potentially being the start of a much closer relationship, which owns a processing plant.

No Merger talks:

The conversation with Alto’s chief executive Dermot Ryan turned into a no-go zone with a polite, ‘no comment’, when asked questions about a possible merger. Ryan said, “to expand the resource base to a target of 500,000 oz, the big issue in front of Alto today”. They can’t talk seriously about mining while they’re very much focused on exploration and that is the key for them.

With some preferring a fast start on production, that might not have been the case for all board members another no-go topic which causes Ryan to again put up the shutters. Alto does have its foot on the share of a geological structure known as the Sandstone Greenstone Belt, which is the more important points about the company, Greenstone is the primary source of gold in WA.

With a treatment plant and a shortage of gold for processing, Middle Island, the other owner of interest in the Sandstone region is the neighbor. Alto is a work-in-progress for investors, but one with excellent corporate connections at board level that include the well-heeled mineral chemist the highly-successful, Terry Wheeler and Terry Streeter the chairman, who’s claim to fame, is a fortune made as a big shareholder in Jubilee Mines and Western Areas a pair of nickel stocks.

It was seen as a sign that the company was getting ready to go mining when Streeter joined the Alto board earlier this year. Doing what earlier owners had done by developing (and re-developing) a series of small pods of gold.

As the company steps up its search to find something more substantial, that plan appears to be waning real possibility if the latest exploration news is a guide, from the relatively shallow depth of 60m in the Vanguard target including a drill intersection of 40 meters assaying 3.5 grams of gold a ton.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK