Possible to mask spritesheets?

I have a texture(spritesheet) containing items I need to extract as sprites. Currently the spritesheet has an alpha layer built in(png file) but I would prefer to make a separate alpha texture myself. However, I cannot seem to find a way to have extracted sprites use a specified alpha texture.

examples…

this is what I have…

this is what I want to work
613de345b1212f8a6964837911b8b75969a052e5.jpeg

585faa6aa031b97af7771888575ceb18149e74f1.jpeg

Resolved. Apparently I had the right idea with the first thing I tried, but must of made a mistake along the way.

You can make alpha spritesheets like I did above and just use a simple material.
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