Altus Strategies upbeat at end of busy first half

Altus Strategies updated the market on its position at the end of the first half on Friday, reporting a cash balance of £10.8m or CAD 18.5m as at 30 June.

The AIM-traded firm reported a cash outflow from operating activities of £1.2m for the half-year, with its balance of listed equity holdings totalling £2.0m at period end.

On the operational front, Altus started its 17,500 metre reverse circulation and air core drilling programme at the Diba gold project in western Mali.

It was granted three new projects, as well as exploration licences adjacent to existing projects, totalling 221 square kilometres in Morocco.

Ground magnetic and soil sampling surveys at the Tabakorole gold project in southern Mali, meanwhile, defined numerous additional targets in the period.

“I am delighted to report on another very active quarter for Altus, during which Altus continued to deliver on its work programmes across its portfolio of projects, including drilling at our projects in Mali,” said chief executive officer Steven Poulton.

“With the receipt of £4.9m at the start of the quarter, being the balance of proceeds from the March private placement, the company ended the quarter with a strong cash balance.

“Having completed a 10,000m reverse circulation (RC) drilling programme earlier in the year at Diba, we commenced a follow-up programme at the end of May, incorporating RC and air core (AC) drilling.”

Poulton said that of the programme, 7,500 metres will be AC drilling and would target a high priority, four kilometre-long and northerly striking zone, which could represent a potential extension of the Diba NW prospect.

“Diba NW was discovered by the first phase RC programme completed by Altus earlier in the year.”

Intersections from Diba NW included 1.45 grams of gold per tonne over 22 metres, and 1.87 grams per tonne over 10 metres, Steven Poulton noted.

He said the AC programme would also test the Diba Far East prospect, which was defined by numerous artisanal gold workings, with shafts reportedly dug up to 20 metres deep, coincident with significant structural targets as identified by the company's ongoing ground magnetic survey.

“Marvel Gold continued to advance the Tabakorole joint venture project in southern Mali during the period, with a drilling programme targeting near-surface, high-grade intercepts that fall outside of the previously modelled mineral resources estimate.

“A 177-hole AC drilling programme totalling 5,148 metres was completed during the quarter.

“This programme has confirmed mineralisation approximately three kilometres southeast of the main deposit.”

In addition to the drilling programmes, Marvel Gold collected 4,267 soil samples and completed 5,300 line kilometres of high resolution ground magnetics, as part of its ongoing regional exploration programme, which included Tabakorole.

“During the quarter, the company conducted reconnaissance exploration on three recently granted copper focused projects totalling 221 square kilometres, located in the western anti-Atlas of Morocco, namely Azrar, Izougza and Tata, Steven Poulton said.

“Analysis has confirmed the presence of prospective geological formations for stratiform sediment-hosted deposits and multiple historic artisanal workings.

“After the period, four further projects totalling 148.5km2 were granted in the western anti-Atlas of Morocco, increasing the company's portfolio of projects in Morocco to 14, and its area of exploration to over 800 square kilometres.”

At 0958 BST, shares in Altus Strategies were up 0.43% at 58.75p.