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Highlights
History Prior to 1998, the property was subject to limited exploration. In 1998 Cameco Gold Inc, a subsidiary of Cameco Corporation, entered into a 70/30 JV with Commander Resources. Their work identified a strong shear-deformation corridor and resulted in the discovery of several parallel zones of anomalous gold including the Cameco named Area 1, Area 2, and Area 3. Cameco initially focused on Area 1 and intersected gold down to 600 m vertical depth at what is now the DAC Deposit. At least four parallel zones of shearing and alteration ranging in horizontal width from 2.5 m to more than 60 m were identified and gold values range from 0.1 to 1.8 g/t across these wide zones. Higher grade veins were intersected within these wide zones including veins containing up to 78 g/t gold across 1.0m as well as wider zones averaging 5.1 g/t gold across 9.7 m. Area 2 is located 1.5 km east of Area 1 and was tested by several holes spaced from 100 to 300 m apart. Sporadic gold was intersected, up to 34.8 g/t over 0.3 m. Alto's Darla Zone lies at the west end of Area 2. Area 3 is located approximately 1.5 km east of Area 2. This area was tested by a single fence of six holes which intersected two gold zones, Zone 20 and 21. Zone 20 returned 4.6 g/t gold across 2 m and Zone 21 includes 2.4 g/t gold across 6 m. Several targets were also identified to the west of Area 1 and east of Area 3. These targets have similar geophysical signatures (magnetic and IP) as the areas where gold has already been found. In 2002, Cameco stopped work on the project as part of corporate restructuring. In 2004, Alto entered into an agreement with Cameco to purchase Cameco's 70% interest for $700,000 in cash and Alto shares over 3 years. The agreement was renegotiated and in 2006, Alto acquired all of Cameco's interest for an aggregate of $350,000. In 2008, Alto purchased all of Commander's interest for one-time cash payment of $375,000 and issuance to Commander of 1,875,000 treasury shares of Alto Ventures. Alto has carried out exploration from 2004 to the present funding 100% of the work as Commander elected to have their interest diluted. To date, Alto has spent $1.3 million on the property and as a result of its sole-funding now owns 75.5% of the project. Exploration by Alto The exploration model for gold mineralization at Despinassy is the classic Archean shear controlled gold-quartz vein system associated with a major regional fault-deformation zone (Despinassy Shear Zone). The property is mostly covered with overburden and has very little exposures of bedrock. Therefore, the most effective exploration tool is diamond drilling and the best time for drilling is in the winter when the ground and muskegs are frozen. Exploration by Alto included the drilling of 10,400 m in 40 holes and this work allowed preparation of a resource estimate compliant with NI-43-101 standards for the DAC Deposit*. The DAC deposit has an indicated resource of 167,000 tonnes averaging 6.88 g/t gold plus an inferred resource of 445,000 tonnes averaging 4.46 g/t gold for total of approximately 101,000 contained ounces. The mineralization is open along strike and to depth. Fine visible gold was observed in many drill holes and high grade intersections, up to 178.5 g/t gold, were obtained in several of the drill holes. Exploration by Alto in Cameco's Area 2 resulted in the intersection of 19.5 g/t across 2.1m at Alto's Darla Zone located one kilometres east of the DAC Deposit. This zone is open to the west, east and to depth. Cameco's Zones 20 and 21 are located approximately 3 km east of DAC and these are being explored as part of Alto's 2008 winter program. Exploration by Alto to the west of DAC outlined the mineralized Despinassy Shear Zone for another 1.5 km to the west. The results are encouraging because drilling intersected similar geology and alteration as at DAC including anomalous gold of 0.1 to 0.2 g/t gold across widths of 10 m as well as higher gold grades including 3.4 g/t across 0.7 m. This 1.5 km segment was tested with only 3 holes spaced 500 m apart. 2008 Exploration Program Alto's 2008 program includes airborne geophysics and diamond drilling. Geotech Ltd flew helicopter-borne time-domain electromagnetic (VTEM) and magnetometer surveys over the property. A diamond drilling program consisting of 4,000 m in 15 to 20 holes will focus on the incompletely explored Darla zone and the gold zones located in Area 3 of the property. The drilling started at the end of January and is currently in progress *Independent evaluation by HCG Ltd classified under National Instrument 43-101 ("NI43-101") guidelines |
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