ALS.L Share News (ALS)

(Sharecast News) - Altus Strategies updated the market on exploration at the Tabakorole gold project in southern Mali on Wednesday, in which it holds a 49% equity interest and a 2.5% net smelter return royalty.

The AIM-traded firm said exploration activities at Tabakorole were being funded by Marvel Gold under its joint venture with Altus.

It said diamond drilling at Tabakorole extended the strike by 150 metres, with intersections from six diamond drill holes of 950 metres including 1.8 grams of gold per tonne over 29 metres from 178 metres in hole 21TBKRCDD001, 1.22 grams per tonne over 12 metres from 167 metres at hole 21TBKDD002, and 0.9 grams per tonne over 39 metres from 111 metres in a composite of hole 21TBKDD004 intersections.

The company noted an 87% increase in the land holding of the Tabakorole joint venture, with the award of two new contiguous licences, and 3,545 line kilometres of high-resolution ground magnetics completed across the project.

It said the results of 5,100 metres of aircore drilling testing the strike extension were pending.

Altus said the project hosted a mineral deposit for which a mineral resource estimate was generated, comprising 16.6 million tonnes at 1.2 grams of gold per tonne for 620,000 ounces in the inferred category, and 7.3 million tonnes at 1.2 grams per tonne for 290,000 ounces in the indicated category.

"The potential of the Tabakorole gold project in southern Mali continues to grow," said chief executive officer Steven Poulton.

"These latest drilling results increase the strike length of the deposit to at least 3.2 kilometres.

"Marvel Gold, our ASX-listed joint venture partner, is aggressively advancing the project, with further drilling already underway targeting near-surface, high-grade intercepts that fall outside of the previously-modelled mineralisation."

Those drilling programmes were expected to contribute to an updated mineral resource in the third quarter of the year, Poulton said, adding that in the meantime, a 5,100 metre aircore drilling programme was also underway, testing the potential for further strike extensions to the south.

"Separately, two new contiguous licences totalling 87 square kilometres have been awarded and added to the Tabakorole joint venture.

"Marvel Gold has already commenced exploration across these two licenses, with soil surveys and ground magnetics underway, to discover potential satellite deposits.

"Tabakorole hosts a significant gold resource, which remains open along strike in both directions as well as at depth."

At 1043 BST, shares in Altus Strategies were down 3.1% at 60.08p.