Alto Ventures Ltd TSXV:ATV in joint venture with Next Gen Metals Inc TSXV:N announced assay results from the Despinassy Shear Zone of the Destiny Gold Project in Quebec. Highlights include
1.54 g/t gold over 1 metre
2.78 g/t over 1 metre
1.07 g/t over 4.4 metres
6.6 g/t over 1 metre
22.7 g/t over 1.1 metres
0.9 g/t over 5.5 metres (including 3.39 g/t over 1 metre)
Alto has a 100% interest in Destiny and is the project operator. Next Gen has acquired a 60% option interest in the property. The drilling tested for the presence of gold mineralization at shallower depth and along strike between the Destiny Gold Project’s DAC Deposit and Darla Zone. The DAC Deposit has a mineral resource estimate of 364,000 ounces gold indicated and 247,000 ounces inferred.
There’s a good chance that this thing can go well over one million ounces—Mike Koziol
President Mike Koziol tells ResourceClips.com, “Destiny is essentially a new discovery that was made back somewhere around 1998. It’s in the Abitibi Greenstone Belt, about 75 kilometres north of Val d’Or. The area is essentially covered by overburden—pretty well 10 metres to 15 metres all the way through of Abitibi clay. Everything we know about it is from drilling and from airborne and ground geophysics. There’s a major deformation corridor that runs roughly east-west that the Destiny deposit is contained in. We’ve traced that corridor now for about six kilometres of airborne geophysics, and we’ve found gold mineralization along four kilometres of that structure with widely spaced drilling. The DAC deposit is one area [of it]—that’s about 600 metres long on that structure—and it’s actually got enough gold for a deposit. The drilling we’ve just reported essentially fills a gap between the DAC deposit and another zone that we found back in 2000, the Darla Zone. It’s about a kilometre away, and there’s been very little drilling there in the past, because back then we were looking for shear-hosted quartz veins. So the drilling we’ve done now has essentially filled that gap and confirmed that gold continues from the DAC deposit all the way through to Darla. We’ll be requiring some infill drilling to see what significance that has to add to our DAC deposit.
“At the present time we’re just getting our results together,” Koziol continues, “and we should be meeting with our partners towards the end of June to see what the next steps are. We can’t do too much there [right now] because winter conditions are more desirable than summer conditions—it’s not wet, but it’s not dry either.
“We’re 75 kilometres north of Val d’Or and 800 metres south of a provincially numbered highway. While we’ve got a powerline that heads right through the middle of the deposit, Hydro Quebec won’t let you use it. But there is a small municipality about eight kilometres south of there, from which we can get power. There is also a source of power running along the highway. So there’s all the infrastructure that you want there, and the Quebec government is very supportive.
Koziol notes that Alto Ventures considers itself an early-stage exploration company and that, “We are probably not equipped to take [Destiny] to production by ourselves.”
Koziol does not see his company’s value reflected in its market cap. He explains, “We have only 23 million shares outstanding, and we’ve got the Destiny project, in which Next Gen is earning a 60% interest. That already has a resource, and this drilling adds significantly to it. We also have the Oxford Lake Project in Manitoba—it’s still fairly early stage, but it’s not a grassroots project by any means. It’s got an historical resource, and our drilling this winter has confirmed that the historical resource is there and that there is good potential to add to it. Then in the Beardmore-Geraldton camp we have a Trelawney lookalike—the Miner Lake property—and there’s potential for large-tonnage, low-grade mineralization right on surface. We did quite a bit of work there last summer and some drilling last fall. And we’ve got 11 million shares of Foundation Resources from the sale of our interest in the Coldstream Gold Project, plus another $950,000 in cash coming from them for the final payment.”
As to funding, Koziol reports, “At the present time we’re looking to seek some funds to do some other exploration work. We’ll see what happens in the next month or two with the markets.”
He concludes, “We’ve progressively advanced the project, so that’s very positive. It’s always been a forward motion, we haven’t really stepped back. We’ve taken it from a bunch of drill-hole intersections right through to a resource of close to 600,000 ounces combined inferred and indicated. Now the drilling indicates there’s gold well beyond where we’ve drilled, so there’s a good chance that this thing can go well over one million ounces. We’ll do some infill drilling and see how that goes.”
Alto Ventures Ltd
or Matt Terriss
Director, Corporate Affairs
by Ted Niles