OXFORD LAKE PROPERTY, MANITOBA
Oxford Lake gold property is located in central Manitoba, approximately 150 km southeast of Thompson. The property consists of 17 contiguous unpatented mining claims which together cover approximately 2,870 ha and two Mineral Exploration Licenses, covering approximately 23,600 ha and are owned 100% by Alto Ventures.
The property includes the historical Rusty Gold Deposit a banded iron formation ("BIF") hosted gold deposit as well as numerous other gold and copper-zinc occurrences. Historical Resources of 800,000 tonnes at an average grade of 6 g/t gold and containing approximately 154,000 ounces of gold have been reported for the Rusty Deposit. It is open along strike and to depth.
Significant Results from Previous Work by Alto
The Oxford Lake property hosts the historical Rusty Gold Deposit as well as several other gold occurrences.
In 2012, Alto completed six drill holes to test the Rusty Deposit and Blue Jay gold zone (holes RUS12-01 to 03) as well as VTEM geophysical anomalies detected during airborne surveys flown by the Company in 2011 (Holes OMA12-01 to 03).
Drill hole RUS12-03 intersected two zones of high-grade gold mineralization:
Drill holes RUS12-01 and 02 were drilled at shallow depths to confirm the ground location of the historical Rusty Gold Deposit and to obtain samples of the mineralization as cores from the 1980's drilling are not readily available. The two holes were spaced 200 m apart on strike and each intersected the mineralized zones at their predicted locations (Table 1).
Results from the 2012 drilling at Oxford Lake are most encouraging confirming gold mineralization for over 2 km along strike and the potential for high gold grades along this trend. The Rusty trend was traced by Alto's 2011 VTEM and aeromagnetic surveys for 30 km along strike but only a few holes were drilled in the past along this trend.
Table 1 Significant Gold Assays from the 2012 Drilling at Oxford Lake
Drill Holes OMA12-01 to 03 tested airborne electromagnetic (VTEM) conductors associated with aeromagnetic "Highs" at the south end of the property. These conductors occur in a separate, east trending band that is located approximately three kilometres to the south of the Rusty Gold Zone. Each of the drill holes intersected iron formation and sulphides and drill hole OMA12-03 returned anomalous gold of 1.75 g/t gold over 1.15m. Results from the OMA holes indicate that this second trend also has potential to host significant gold mineralization.
*The historical resource was estimated in 1990 and a Qualified Person (QP), as defined by NI43-101, has not done sufficient work to classify this historical estimate as current mineral resources. Alto is not treating the historical estimate as current mineral resources, as defined by NI43-101, and thus the historical estimate should not be relied upon.
Geology and Mineralization
The property lies in the Oxford Lake-Knee Lake greenstone belt near the west end of the Superior Province of the Canadian Shield. The Western Superior has proven potential for hosting large gold deposits, including the Musselwhite Mine with past production and reserves of over 5.7 million ounces of gold hosted in a banded iron formation (BIF).
Both the Rusty Deposit and the Blue Jay Zone lie along a 30 km trend of aeromagnetic "Highs" that are interpreted to be related to BIF. The aeromagnetic signatures to the northwest of the Rusty Deposit are intriguing as they appear wider and possibly caused by thickening of individual BIF units or presence of multiple BIF units. Historical drilling in this area was limited to only two holes and significantly, one of the holes intersected 0.98 g/t Au/3.1m.
Regionally, the Oxford Lake property lies in north eastern Manitoba along a major regional structural corridor that hosts the pre-development Monument Bay Gold Deposit approximately 150 km east of Oxford Lake. The Monument Bay Gold Deposit hosts Indicated Resources of 36.6 M tonnes averaging 1.52 g/t Au containing 1.78 M oz of gold and Inferred Resources of 41.9 M tonnes averaging 1.32 g/t Au containing 1.78 M oz of gold (Yamana Gold website).