Destiny Project, Quebec
The Destiny Project is 100% owned by Alto Ventures and is located in the Despinassy Township 100 km northeast of Val d'Or, Quebec. It is road accessible and excellent mining infrastructure and support facilities are available in nearby Val d'Or and Amos.
The Company has commissioned the preparation of a new Resource Estimate Report to consider the underground potential of the high grade gold bearing veins within the DAC Deposit. The DAC Deposit is made up of high grade gold-bearing quartz veins occurring within five parallel altered shear zones. In addition to gold in the quartz veins, the altered zones also carry gold at lower grades than the quartz veins but are significantly wider and contribute to the global gold resources at the DAC Deposit.
In 2011 a Resource Estimate Report was prepared to estimate the gold content and grades of the five parallel altered shear zones. The Resource Estimate* was prepared in compliance with NI43-101 standards and was reported in January, 2011 for the five parallel zones that form the DAC Deposit. The Resource Estimates include 10.8 million tonnes at an average grade of 1.05 g/t in the Indicated (364,000 contained ounces) category plus 8.3 million tonnes in the Inferred (247,000 contained) category at a cut-off grade of 0.5 g/t gold to a depth of 400m. The Deposit is made up of five parallel lenses and each of the lenses is open below 400m depth.
The DAC Deposit is one of several significant gold occurrences on the property along the Despinassy Shear Zone, a gold bearing structure that has been traced by drilling and geophysics for 6 km along strike. Some of the better defined zones include the Darla Zone located approximately 1 km east of DAC and the Zone 20 and 21 areas which lie 3.5 km east of DAC. Zones 20 and 21 remain open to the east of the original discovery holes. Gold mineralization was also found in a drill hole one kilometre west of the DAC deposit but not followed up.
Technical Report (43-101)
An NI43-101 Technical Report (the Report) including a new Mineral Resource Estimate for the DAC Gold Deposit was completed in 2011. The Report was prepared by Wardrop, a Tetra Tech Company (Wardrop)* and incorporates over 7,600 m of additional drilling that was completed on the deposit subsequent to an earlier NI43-101 compliant resource estimate calculated by W. A. Hubacheck Consultants Ltd and filed on SEDAR in 2007. The Report was filed on Sedar on March 3, 2011.
At a cut-off grade of 0.5 g/t gold and using the Inverse Distance Squared (ID2) estimation method, the five gold zones contain an Indicated Resource of about 10.8 million tonnes with an average grade of 1.05 g/t gold (364,000 contained ounces). In addition, the Inferred Resource totals 8.3 million tonnes with an average grade of 0.92 g/t gold (247,000 contained ounces).
Table 1 DAC Resource Estimation Summary by Zone (using ID2 method)
Table 2 Cut-off Sensitivities for the DAC Deposit Resource Estimate
In addition to the 0.5 g/t gold cut-off grade, the following parameters were considered; 4:1 stripping ratio, operating costs of $14.30/tonne at 10,000 tonnes per day, long term gold price of $US973/troy ounce, $US to $Cdn conversion of 1.02 and gold recovery of 94%. The resources block considers the mineralization to start at approximately 15 m below surface down to a depth of 400m for the deepest zone (Zone 5).
Further exploration work is recommended with the vision of developing a viable open-pit mining scenario on the project.
Mineral Resources are not Mineral Reserves and by definition do not demonstrate economic viability.
*Todd McCracken, P.Geo, is a Qualified Person ("QP") for purposes of NI 43-101 Report. He is responsible for preparing the Report and the Resource Estimate disclosed in the Report. Mr McCracken is an employee of Tetra Tech (formerly Wardrop), and independent from the Company as described in section 1.4 of NI 43-101.
Drilling in the Area between DAC Deposit and Darla Zone
The 2011-12 winter programs consisted of 3,472 m of diamond drilling in 15 holes. The main focus of the 2012 drilling was the Despinassy Shear Zone which was tested with 12 holes in the GAP Zone between the DAC Deposit and the Darla Zone. Three holes tested the Despinassy Shear to the west of the DAC Deposit.
The 2012 drilling program has established that there is significant gold mineralization along the Despinassy Shear Zone in the GAP Zone between the DAC Deposit and the Darla Zone. Anomalous values of gold were intersected in each of the twelve holes that tested the nine hundred metre strike length of the GAP Zone, between the DAC Deposit and the Darla Zone.
Several of the holes could be economically significant. Hole DES12-147 includes high grade values up to 78.7 g/t gold over one metre within a wider mineralized envelope averaging 11.3 g/t gold over 8.0 m. Wider zones with gold grades similar to the deposit average were intersected in some holes including 1.05 g/t gold over 10.0 m and 1.04 g/t gold over 11.0 m, both from hole DES12-144. Additional drilling will be required to determine if these "better-looking" gold zones, particularly near holes DES12-144 to 147 have some size potential to add tonnes and ounces to the DAC Deposit. Hole DES12-154 intersected a narrow shear containing 22.7 g/t gold over 1.05 m approximately 100 m south of the main lenses of the DAC Deposit. This shear zone requires additional drilling to determine if it has economic significance.
Three holes (DES11-141 to 143) tested for continuation of the Despinassy Shear Zone between seven hundred and nine hundred metres to the west of the DAC Deposit. The drill holes intersected shearing and alteration and several geochemically anomalous gold values. The best assay result of 885 ppb gold over 1.4 m was obtained from hole DES11-141.
Property Geology and Mineralization
Geology on the Destiny Property consists mainly of mafic volcanic rocks in the northern half, and andesitic and metasedimentary rocks in the southern half of the property. Several different generations of felsic and mafic intrusive bodies were emplaced into the volcanic and sedimentary sequences.
A major east striking shear zone, the Despinassy Shear, traverses the centre of the property. The Despinassy Shear has been traced by drilling and airborne geophysics for more than six kilometres along strike and gold was intersected at several locations over a four kilometre segment of this shear zone, including the DAC Deposit, GAP Zone and the Darla Zone.
The DAC Deposit is made up of high grade gold-bearing quartz veins occurring within five parallel altered shear zones. In addition to gold in the quartz veins, the altered zones also carry gold at lower grades than the quartz veins but are significantly wider and constitute most of the DAC Deposit gold resources. The best gold mineralization is associated with sheared quartz porphyry dykes which occur trending parallel and sub-parallel to the strike direction of the main shear. Pyrite, galena and sphalerite are common indicators for gold mineralization.
The Darla Zone lies one kilometre east of the DAC Deposit and drilling prior to 2012 has intersected high grades including 19.5 g/t gold over 2.1 m and 20.6 g/t over 0.8 m within strongly altered rocks similar to those hosting the gold zones at the DAC Deposit.
Zones 20 and 21 are located approximately 2 km east of the Darla Zone on strike with the Despinassy Shear Zone. Drilling at Zone 21 returned assays of 2.4 g/t gold across 6.0 m. The gold is associated with intense shearing and strong alteration including silicification, quartz veining, and pyrite mineralization. Higher grades include 5.3 g/t across 0.5m. Drilling in Zone 20 intersected 4.6 g/t gold across 2.0 m in a geological setting similar to Zone 21. Additional drilling is required to test Zone 20 and Zone 21 to the east of the previously intersected gold mineralization.