Altus Strategies announce 1Q21 report

Highlights

Highlights for 1Q21 are as follows:

Operational highlights

• Expansion of activities into Egypt through award of four gold exploration licences totalling 1565 km² located in the Eastern Desert through a competitive international bidding process.
• Grant of three new copper and silver exploration projects totalling 252 km² within the prospective western Anti-Atlas belt of Morocco.
• Completion of strategic review of Bikoula iron project in southern Cameroon by Mining Plus UK Ltd to determine next steps for development.
• Drilling at Tabakorole joint venture (JV) gold project in southern Mali, extending the strike length by 150 m to over 3 km.

Corporate highlights

• Completion of over-subscribed private placement raising £7.7 million/CAN$13.35 million at an issue price of £0.75/CAN$1.30 per ordinary share, with net proceeds to be primarily used to accelerate gold exploration programmes in Egypt and Mali as well as potential acquisition opportunities.
• Receipt of second tranche of 10 million shares in Canyon Resources Ltd with a value of £0.6 million/CAN$1.1 million.

Financial highlights

• Cash balance of £7.4 million/CAN$10.3 million as at 31 March 2021.
• Cash outflow for operating activities of £1.0 million/CAN$1.7 million for 1Q21.
• Balance of listed equity holdings of £2 million/CAN$3.4 million as at 31 March 2021.

Post period

• Grant of three new exploration projects as well as licences adjacent to existing projects totalling 221 km² in central Morocco.
• Commencement of 17 500 m reverse circulation (RC) and air core (AC) drilling programme at Diba gold project in western Mali.

Steven Poulton, Chief Executive of Altus, commented: "This was another exciting quarter for Altus, in which the company significantly expanded its exploration project portfolio, including its first projects awarded in Egypt. Altus also ended the period in a strong financial position following the completion of an over-subscribed placement raising £7.5 million/CAN$13 million after expenses. The company currently has cash in hand equating to £11.1 million/CAN$18.9 million and listed equity holdings with a market value of £2.4 million/CAN$4.1 million.

"Following a competitive international bidding process, Altus was awarded four gold exploration projects in Egypt, comprising nine licence blocks totalling 1565 km² in the Eastern Desert. All four projects are considered highly prospective, with over 100 interpreted historical hard rock gold workings identified by our remote sensing programme.

"In addition, as part of a competitive tender process, the company was awarded three new copper and silver projects in Morocco. The projects total 252 km² and target sedimentary copper-silver mineralisation within the prospective western Anti-Atlas mountains. With this award, the company has doubled its land holding and increased its portfolio of base and precious metals projects in Morocco to seven.

"Drilling continued at three of the company's gold projects in Mali. Encouraging results were reported from the company's 100% owned Diba project in western Mali, with the discovery of a new coherent series of shallow-dipping, near-surface lenses of gold mineralisation at the Diba NW prospect. Positive results were also received from a 6300 m RC drilling programme at the Tabakorole project in southern Mali, undertaken by the company's JV partner, Marvel Gold. That programme extended the potential strike of the Tabakorole deposit to the southeast and defined a potentially parallel mineralised zone. A 3800 m RC drilling programme and passive seismic survey at the Lakanfla project in western Mali, also under JV with Marvel, successfully proved the presence of a karst system and defined a number of encouraging targets.

"We look forward to another exciting quarter ahead, including the commencement of fieldwork in Egypt and the further drilling programmes in Mali."

Read the article online at: https://www.globalminingreview.com/finance-business/28052021/altus-strategies-announce-1q21-report/