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Altan in the pilot seat

ltan Rio Minerals Ltd hopes a new part- to an arrangement where we could look to
Anership with the owner-operator of the commercialise what looks to be a very excit-
Marvel Loch gold processing facility will be the ing opportunity,” Altan chief executive Paul
catalyst for unlocking a series of stranded pro- Stephen told Paydirt.
duction opportunities north of Southern Cross. “This is a true 50-50 deal. We’re both
TSX-listed Altan has entered an explora- contributing exactly the same amount of
tion and mining agreement with Tianye SXO tenure, we’re both contributing our own
Gold Mining Pty Ltd over the historic Pilot gold costs and we’re splitting the profits from any
mine, about 10km north-west of the Southern mining activity.
Cross townsite. “I think what makes this truly unique is the
Under the terms of the five-year agree- corresponding toll-treatment agreement we
ment, both parties have defined an area have with the Marvel Loch processing facility.
of mutual interest incorporating Tianye’s It’s one thing to have the potential to re-open
M77/1049 tenement (including Pilot) and the one of these mines that were mined in the
equivalent or greater part of Altan’s surround- 1990s when the gold price was $300-400/oz, Altan Rio controls 28km of the Fraser-
ing P77/4341 permit. but unless you’ve got the capacity to treat that Corinthia Shear Zone
Altan will meet all costs associated with ex- at a willing facility then it’s really not that much
ploration, development and mining activities good to you.
at its sole discretion with no minimum expen- “Obviously our chairman John Jones was “For us the biggest opportunity we have is
ditures required. Any costs will be recovered the chairman of Troy Resources at the time, getting cash into the company that will allow
from future mining and processing via the so we have a high level of understanding of us to chase new opportunities on the belt,”
Marvel Loch processing facility, 35km south what it looks like and we think we can get Stephen said.
of Southern Cross. Profits will be shared on some cash flow out of this very quickly.” “The real asset of Altan Rio shareholders
a 50:50 basis. Historical reports suggest some 100,000- is that 28km of the Fraser-Corinthia Shear
Pilot was discovered in the early 1990s 120,000t grading about 3 g/t gold remains Zone that has been largely untested. There’s
and was last mined by Troy Resources NL below the existing pit floor at Pilot. Troy also six mines that exist on that shear and there’s
in 1994. No exploration work has been con- reported recovering nearly 30,000oz in 1994 been very, very little exploration done be-
ducted there since. before shuttering the mine. tween any of those mines, mostly due the
“We could see the value of the Pilot mine Along with investigating Pilot’s under- presence of either salt lakes or operating
and because it’s completely land-locked by ground potential, Altan hopes to monetise wheat farms.”
our tenement package it made complete other advanced portions of its Southern – Michael Washbourne
sense for the two owners to speak and come Cross North licence.

aUSTRaLIa’S PaYDIRT aUgUST 2020 Page 11