Alt Resources Ltd.: Annual Report 2017
28.09.2017 | ABN Newswire
Canberra - Alt Resources Ltd. (ASX:ARS) has made significant advances over the past year expanding our exploration activity and asset acquisition and has achieved this with limited cash reserves, optimising our assets and the cash investment in these assets. We have been well supported again through grants from the NSW Government for drill funding and through the Federal Government's Research and Development program.The Company has optimised this support to the extent that we have not undertaken any capital raisings since October 2016 to fund exploration activity. A bonus for shareholders in that share dilution has been negligible and shares on issue remains low. We currently retain approximately 17.5 million shares in treasury that can be issued to raise capital as required over the next 3-6 months with additional capacity due in December 2017.
The Company's forward exploration focus has two main elements.
Element One: Evaluation and financing approach for detailed exploration of Paupong tenements.
Paupong is a newly defined intrusion-related gold system in southern NSW, which shows evidence of polymetallic gold-silver-copper-lead-zinc mineralization over a very large footprint (8 x 4 km defined by exploration thus far). The project has seen results in rock chips at surface up to 14 g/t gold, 451 g/t silver, 3.8% copper, 4.1% lead, 1% zinc and 1.4% bisumth. The distribution of mineralisation large quartz vein systems peripherally associated with deformed granites has been supported by our drilling results. The system is open at depth and in all directions.
Our evaluation work on this project has been recognised as a qualifying Research & Development project for R & D tax incentives and the company has received funding of $1,081,000 under this government incentive scheme.
The Board and geological staff recognise the Paupong IRG System as a large scale project with potential for significant mineral system discovery in commercial form. The Board intends to complete arrangements for the undertaking of an independent valuation of the project and offer an interest in the project to larger companies on an earn in basis to move forward with the necessary exploration funding.
Element Two: Exploration and development in WA Eastern Goldfields Region.
To increase our tenement position in the eastern goldfields region of WA with particular emphasis on expanding exploration at the Mt Roberts gold project located at Leinster. The Agnew-Wiluna greenstone belt is one of the more prolific gold producing regions in WA. As part of our expansion into this region we have recently acquired a tenement interest from Montezuma Mining surrounding our pre-existing Mt Roberts tenements. Recent drilling at Mt Roberts intercepted significant gold grades from surface and represents an immediate opportunity to develop a gold resource suitable to establish a small toll treating mining operation.
Capital for exploration traditionally comes through the issue of shares to existing members and or new investors who see potential for discovery from the Company's assets. Junior exploration is a high risk investment environment however exploration discovery can provide high returns to investors. The simple fact is that we have to drill holes in the ground and drilling holes requires quality drill targeting and cash. Both target generation and drilling burns cash at a rapid rate.
Cash generation by mineral extraction is not a usual pathway for junior exploration companies, however the Board considers delimiting risk and generating project based cash flow to fund exploration is in the interest of our shareholders. As such the Company is moving towards generation of a sustainable cash flow from operations. We have advised shareholders one of our immediate objectives is to develop the Mt Roberts gold project into a small toll treating open pit operation. Toll treating is a small-scale mining operation that mines an ore body and carts the ore to a contract processing plant nearby.
The Company will seek to expand operations in WA and will continue to evaluate gold opportunities in this state. WA is recognised as one of the top 3 jurisdictions globally to operate mining and exploration and Australia is the second largest gold producer. The Company is in contact with high profile funding groups in Australia, Canada and London regarding project and corporate funding with significant Investment interest being shown in WA gold projects as a safe investment environment.
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About Alt Resources Ltd:
Alt Resources Ltd. (ASX:ARS) is an Australian based mineral exploration company exploring the newly discovered Paupong IRG mineral system located in the south-east Lachlan Orogen in New South Wales. Alt retains a 70% interest in the Paupong and Myalla Projects with JV partner GFM Exploration Pty Ltd.
Contact:
Alt Resources Ltd.
T: 1300-66-00-01 M: +61-406-069-243
E: info@altresources.com.au
www.altresources.com.au