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Resource Clips


Posts tagged ‘Alto Ventures Ltd (ATV)’

Replenishing reserves

December 11th, 2014

With a decade of diamond demand outgrowing supply, Canada’s a target for new sources

by Greg Klein

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Diamonds: Global supply and demand

Miners of other commodities might welcome half of the diamond dilemma. Forecasts see continued market growth for another decade. But production will taper off. That’s the 10-year prognosis from Bain & Company and the Antwerp World Diamond Centre. Meanwhile another report from the NWT and Nunavut Chamber of Mines addresses the need to maintain production in the Northwest Territories, the world’s third-largest source of diamonds by value and home to a busy exploration scene.

The December 9 Bain study, which generally agrees with a September report from De Beers, expects an average 4% to 5% compound annual growth in rough diamond demand to 2024 driven largely by India, the U.S. and especially China. Supply growth, on the other hand, should lag behind at 3.5% to 4% up to 2019, then fall to somewhere between 1.5% and 2% for another five years.

With a decade of diamond demand outgrowing supply, Canada’s a target for new sources

The world’s largest source of new production would be Gahcho Kué, the De Beers/Mountain Province Diamonds TSX:MPV joint venture slated for 2016 production in the NWT’s Lac de Gras region. The mine’s expected to produce between five and six million carats annually to 2020.

Bain forecasts Lukoil’s Grib mine in Russia at four to 4.5 million carats a year when it begins operation in 2016. After that would come the Karpinsky-1 pipe at ALROSA’s Lomonosov project in Russia, expected to yield about three million carats annually after reaching commercial production in 2015. Stornoway Diamond’s (TSX:SWY) Renard project in Quebec, slated for 2016 commercial production, should be good for another 1.5 million carats a year. Looking farther ahead, Rio Tinto’s (NYSE:RIO) Bunder mine in India is projected to yield another three million carats annually on reaching full production in 2020 or 2021.

“Other new mines under development are relatively small; each is projected to produce one million or fewer carats annually,” the report states.

“Because it takes seven to 10 years to develop a mine, even if major new deposits were discovered within the next few years, there would not be enough time to bring them to full production by the end of the forecast period,” the study adds.

Diamond supply: The Canadian outlook

The supply/demand imbalance notwithstanding, jewelry retailers show increasing eagerness to trace diamonds to ethical sources, Bain points out.

Among those sources is Canada, renowned for high-quality, conflict-free stones. Diamond mining now takes place in Ontario and the NWT, with Quebec expected to join soon and Saskatchewan another possible contender. Output from just three mines in Lac de Gras ranks the NWT region third globally for diamond production by value.

Of those three, Dominion Diamond’s (TSX:DDC) majority-held Ekati is projected to run out of ore in 2019, according to the NWT and Nunavut Chamber of Mines. The chamber gives the Dominion/Rio Diavik operation a life expectancy to 2024 and De Beers’ Snap Lake until 2028.

Rio has since announced plans to bring Diavik’s A-21 deposit online. Yet the chamber maintains A-21’s expected to maintain current production, not extend mine life.

Ekati’s best chance for a stay of execution is the Jay project, “the largest diamondiferous resource in North America,” according to Dominion, and a potential extension of 10 or more years to the Ekati operation. Should environmental approval arrive by the end of 2015, Dominion hopes to begin operations by 2019.

Diamond exploration: The juniors move in

Not surprisingly, it’s up to the juniors to meet growing demand. Since Canadian diamonds are found in kimberlites and kimberlites tend to come in clusters, most exploration takes place near known deposits—with the hope that nearby kimberlites will also contain diamonds.

The hottest hotbed of activity is the NWT, especially around Gahcho Kué. Kennady Diamonds TSXV:KDI holds turf on three sides of the project. Last month the company mobilized for more exploration and delineation drilling on Kelvin, one of the Kennady North project’s four diamond-bearing kimberlites. Diamond recovery results are expected by year-end from two more mini-bulk samples.

Another Gahcho Kué neighbour, Prima Diamond TSXV:PMD holds the 42,000-hectare Godspeed Lake project immediately south of the mine-to-be. Forty kilometres northwest of Gahcho Kué and 35 kilometres east of Snap Lake, Prima holds the 14,000-hectare Munn Lake project. A 581-kilogram sample from one Munn Lake kimberlite gave up 226 diamonds while a 42-kilogram sample from another revealed 14 diamonds. Prima also optioned the Orion diamond property, 2,275 hectares in Quebec’s Otish Corridor, north of Stornoway’s upcoming operation.

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Alto President Mike Koziol on Quebec JV gold assays of 22.7 g/t over 1.1m

May 15th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAlto 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.”

View Company Profile

Contact:
Alto Ventures Ltd
Mike Koziol
President/Director
705.522.6372

or Matt Terriss
Director, Corporate Affairs
604.638.3947

by Ted Niles

Alto, Next Gen report Quebec Destiny gold assays as high as 22.7 g/t over 1.1m

May 14th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAlto 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.”

View Company Profile

Contact:
Alto Ventures Ltd
Mike Koziol
President/Director
705.522.6372

or Matt Terriss
Director, Corporate Affairs
604.638.3947

by Ted Niles

Foundation buys remaining 40% of Ontario Coldstream Gold Project from Alto

November 9th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningFoundation Resources Inc TSXV:FDN will buy the remaining 40% interest in the Coldstream Gold Project in northwestern Ontario from Alto Ventures Ltd TSXV:ATV for $2.5 million in cash and shares. Over an initial six-month period Foundation will pay Alto $1.3 million and issue the company 10 million common shares at $0.12 a share. On the closing date Foundation will pay an additional $350,000 and issue Alto up to 10 million shares. Foundation will pay a further $950,000 and issue the balance of any shares due to Alto within six months of the closing date.

Coldstream hosts a number of gold targets including the East Coldstream Deposit, which has an indicated resource estimated at 3.5 million tonnes grading 0.85 grams per tonne for 96,400 ounces gold and an inferred resource estimated at 30.5 million tonnes grading 0.78 g/t for 763,276 ounces gold.

Foundation President/Director Ike Osmani commented, “We are very pleased to acquire the remaining 40% interest in the Coldstream Property, which is a substantial step forward in the development of the company. This consolidation of ownership enhances Alto as a strategic shareholder and creates additional value for our existing shareholders.”

View Company Profile

Contact:
Foundation Resources Inc
Ike Osmani
President/Director
604.681.0405
800.667.4470

Alto Ventures Ltd
Mike Koziol
President/Director
705.522.6372
or Rick Mazur
CEO/Director
604.689.2599

by Greg Klein

Foundation, Alto report Ontario Gold Assays up to 3.49 g/t over 13m

April 21st, 2011

Foundation Resources Inc TSXV:FDN in joint venture with Alto Ventures Ltd TSXV:ATV announced assays from the East Coldstream Deposit of the Coldstream Property in northwestern Ontario. Results include 0.5 g/t gold over 56 metres (including 1.14 g/t over 10 metres), 0.53 g/t over 44 metres (including 4.7 g/t over 2 metres), 0.93 g/t over 42.6 metres (including 1.29 g/t over 13.1 metres) and 3.45 g/t over 13 metres (including 10 g/t over 4 metres). Foundation is the project operator and owns a 60% interest in the Coldstream Property. Alto owns 40%.

Foundation President/Director Ike Osmani commented, “The management and board of both companies are very pleased to report continued drilling successes at the East Coldstream Deposit. These drill hole results have demonstrated greater strike lengths from the Main and East Zones of the East Coldstream Deposit which should add significant gold resources to the historic resource calculated by Noranda in 1990.”

View Company Profile

Contact:
Foundation Resources Inc
Paul Chung
CEO/Director
604.681.0405

or Ike Osmani
President/Director
604.681.0405

by Ted Niles

Foundation, Alto report Ontario Gold Assays of 3.68 g/t over 26m

March 22nd, 2011

Foundation Resources Inc TSXV:FDN in joint venture with Alto Ventures Ltd TSXV:ATV announced assays from the Iris Lake Area, north of the East Coldstream Deposit on the Coldstream Property in northwestern Ontario. Results include 5.29 g/t gold over 1.6 metres (including 13.55 g/t over 0.6 metres), 3.68 g/t over 26 metres (including 61.7 g/t over 1.2 metres), 1.76 g/t over 8.9 metres and 1.24 g/t over 13 metres.

Foundation is the operator of the joint venture and owns a 60% interest in the Property. Alto has the remaining 40% interest. The East Coldstream Deposit has an historical, non-NI 43-101 compliant resource of 234,000 ounces gold.

View Company Profile

Contact:
Foundation Resources Inc
Paul Chung
CEO, Director
604.681.0405

or Ike Osmani
President, Director
604.681.0405

by Ted Niles