The Mud Lake project is located approximately 25 km northeast of the Town of Beardmore and is owned 100% by Alto. Access to property can be gained by the Trans Canada Highway 11 and then by major logging roads.
Gold mineralization was discovered along six kilometre shear zone. To date, 12 significant gold occurrences were identified on surface by trenching and some of the better assay results from grab samples include:
30.0 g/t gold from Showing #1
50.6 g/t gold from Oliver Severn Showing
19.8 g/t gold from Showing #6
8.1 g/t gold from Clarke Showing
In 2007 and 2008 Alto completed a total of 30 short holes to test six of the surface occurrences, intersecting anomalous gold values in each of the occurrences tested. At the Oliver Severn Showing drilling intersected up to 13.9 g/t gold across 1.0 m within 6.1 m wide mineralized zone averaging 3.4 g/t gold.
The Mud Lake property lies within the Elmhirst Townships, approximately 25 km northeast of the Town Beardmore, Ontario and it is situated north of the Brookbank gold deposit operated by Premier Gold Mines Ltd.
The Mud Lake property is bisected by a 6 km long shear zone (Mud Lake Shear) cutting through Archean age Coyle Lake felsic intrusive. Alteration of sheared rock includes sericite, carbonate, silica, chlorite, pyrite, magnetite and hematite.
Gold mineralization is associated with quartz and quartz-carbonate veins that occur as shear-parallel en-echelon veins. Gold also occurs associated with pyrite stringers and quartz-microveins within the shear.
The Beardmore-Geraldton Gold Belt has historically produced over 4.1 million ounces of gold. Exploration work on the property dates back to the 1930's and consisted of mainly prospecting, ground geophysical surveying and trenching. In the late 1980's Noranda Exploration carried out an extensive program of geological mapping and trenching. Frank Houghton, a Beardmore prospector continued to prospect and trench the area until 2004 when Alto Ventures acquired the property.
Alto carried out geological mapping in 2005 to better understand the distribution of the gold occurrences and controls on gold mineralization. The Company also completed line cutting and 16.9 km of Induced Polarization ("IP") surveying. The geological work has confirmed the presence of 12 gold occurrences spread out along the 6 km Mud lake Shear Zone and recognized that gold is associated with quartz and quartz carbonate veins as well as pyrite stringers within shear zones in areas where quartz veining is not abundant. The IP work has identified 20 anomalies that could be related to sulphide (pyrite) mineralization and possibly gold that is associated with the sulphides.
In February, 2007 Alto drilled 12 holes totaling 753 m to test three (Clarke, Oliver Severn and Showing #6) targets. A fall exploration program included trenching, sampling and diamond drilling. Diamond drilling started in late November and was completed in late January, 2008. In total, 18 holes, totaling 1283 m were completed to test three new targets that were not drilled before (No. 3 Showing, No. 4 Showing, and No. 5 Showing) and follow up mineralization intersected in drill holes completed during the 2007 winter program. Significant assay results obtained from the 2007 winter programs are presented below:
In January of 2008, four of nine holes intersected significant gold mineralization including 7.25 g/t across 1.0 m.
Table of Significant Assay Results from January 2008 Mud Lake Drilling
The results from these holes and from earlier drilling clearly demonstrate the significant potential of the property.
Mechanical stripping during the summer of 2008 exposed more sites along the Mud Lake Shear Zone at several locations including a set of quartz veins that start at the northeast end of Showing No 6 and extend continuously for 120 m on surface. Channel sampling of these veins has returned up to 3.0 g/t gold across 1.0 m. Twelve diamond drill holes totaling 1,009 m were completed in October 2008 testing some of the new targets. Diamond drilling of the trenched areas intersected shearing and quartz veining including hole MUD08-40 which cut a 6.9 m wide shear zone containing a quartz vein that is 1.4 m wide. However, no significant gold values were obtained from these holes.
The Mud Lake property is located to the north of the Brookbank deposit and there are still numerous targets to prospect and drill along the Mud Lake Shear Zone. The area remains highly prospective for hosting significant gold deposits as confirmed by Premier Gold Mines Ltd.
In a press release dated December 19, 2012, Premier Gold Mines reported resources for open pit and underground mining of the Brookbank deposit. These include: 2.63 million tonnes Measured+Indicated averaging 2.02 g/t gold containing 171,000 ounces and 0.17 million tonnes Inferred averaging 2.38 g/t gold containing 13,000 ounces for the open pit. For the underground mining the resources are 1.85 million tonnes Measured+Indicated averaging 7.21 g/t gold containing 429,000 ounces and 0.43 million tonnes Inferred averaging 4.02 g/t gold containing 53,000 ounces.