Altus Strategies (AIM: ALS) has reported recent progress in a quarterly report following high grade drilling results at the FT Prospect at its Tabakorole gold project in southern Mali.
The dual-listed mining royalty firm highlighted ‘encouraging’ results from the recent drilling programme of the FT Prospect at Tabakorole during the three-month period ended 30 June 2020 with high grades and broad widths of gold mineralisation intersected at the site.
The drilling was completed by Graphex Mining under a joint venture with Altus Capital and consisted of eight diamond drill holes for a total of 1,544m targeting modelled high-grade trends defined by previous historical drilling and the northwest extension zone, it noted.
The results defined certain “excellent” gold targets after the drilling programme intersected 4.7 g/t (grade of ore) of gold over 14m, within a wider envelope of 38m averaging 2.1 g/t.
Revenues for the six-month period ending 30 June 2020 came in at £0.177m (1H19: £0.028m) from income earned and costs recovered from the JV partner.
Operating loss amounted to £0.732m compared to £0.873m in 2019 due to £0.58m of exploration costs and administrative expenses of £0.273m (1H19: £341k).
Cash and marketable securities stood at £9.4m and C$15.7m, respectively from £7.5m / C$12.6m as at 30 June 2020, where listed equity also stood at £1.9m / C$3.1m.
Shares in Altus Strategies have performed strongly over the past three months trading from 33p June to 69p in early trade today following the announcement.
In addition, Altus inked a non-binding term sheet during the period with Stellar AfricaGold Inc. for the sale of and royalties on Prikro and Zenoula gold projects in Côte d'Ivoire.
The group said plans have been put in place for the start of an initial 3,500m drilling programme at the Lakanfla gold project in western Mali in the fourth quarter of 2020.
Post period, Altus Strategies jumped as much as 164% last month after it announced a positive economic assessment for its 100% owned Diba gold project in western Mali.
The PEA indicated an open-pit oxide gold mine, demonstrating strong cash flow and rapid payback with project economics applying a 10% discount rate and a gold price of $1,500/oz.
Altus said it believed it had only “scratched the surface” in terms of Diba's potential.
In recent weeks, Altus secured an environmental impact assessment at its Agdz silver and Dopper prospect in Morocco which represents a key milestone to attaining a mining licence.
Altus said it continues to review potential project acquisitions and royalty transactions which could expand the Company’s pipeline and potential to generate near term cash flow.
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