| ||Tue Nov 22, 2011|
Alto Ventures and Next Gen Metals Commence 3,500 metres Diamond Drilling Program on Destiny Gold Project, Val d'Or, Quebec
- 3,500 metre diamond drill program in progress to test the strike extension of the DAC Deposit
- The objective of the drilling program is to increase the contained ounces on the Destiny Property at shallow depths
- Drilling will test the under-explored one kilometre section of the Despinassy Shear between the DAC Deposit and the Darla Zone
- If drilling results are positive, potential for expanding the current resources on the property can increase significantly
- The DAC Deposit contains an Indicated Resource of 364,000 ounces of gold plus an Inferred Resource of 247,000 ounces of gold.
November 22, 2011, Vancouver, BC -- Alto Ventures Ltd. ("Alto") TSX-V: ATV and Next Gen Metals Inc. ("Next Gen") TSX-V: N (together "the Companies") are pleased to announce the commencement of diamond drilling on the Destiny Gold project, located near Val-d'Or, Quebec.
The drilling program will focus mainly on testing the under-explored area between the DAC Deposit and the Darla Zone. If the results from this drilling are positive, then the gold discovered in this area can significantly add to the total ounces contained on the Destiny property. Currently, the DAC Deposit has an Indicated Resource of 364,000 ounces of gold plus an Inferred Resource of 247,000 ounces of gold. The deposit remains open along strike and at depth.
The current drill program will consist of 3,500 m in eighteen holes. The objective of the drilling program is to increase the contained ounces on the Destiny Property at shallow depths. This program will test the one kilometre gap in drilling between the DAC Deposit and the Darla Zone at shallow depths to determine if the gold mineralization continues between these two areas. If results from these widely spaced holes are positive, an infill program will be proposed to generate sufficient data to prepare an updated NI43-101 compliant Resource Estimate Report incorporating results from the Darla Zone as well as the area between the Darla Zone and the DAC Deposit.
The DAC Deposit is one of several significant gold zones along a four kilometre segment of the Despinassy Shear Zone. The Darla Zone lies one kilometre east of the DAC Deposit and previous drilling 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. The large area of almost one kilometre between the DAC Deposit and the Darla Zone has been tested by only two drill holes in the past. Both holes intersected the Despinassy Shear Zone containing anomalous gold values (Figure 1). This is an indication that the gold system persisted between these two areas and that there is excellent potential for discovery of new gold zones between the DAC Deposit and the Darla Zone (Figure 2).
Figure 1- Location map of 2011 drill program. Figure illustrates the under-explored area between DAC deposit and Darla Zone
Figure 2- 3D view showing; under-explored area between DAC Deposit Zones and Darla Zones
About the Destiny Property
The property consists of 177 claims totalling 7,421 ha and is located approximately 100 km by road north of the city of Val-d'Or. The property is accessible by provincial highway 397 which passes through the property.
The Destiny Project is under an Option Agreement between Alto Ventures Ltd and Pacific North West Capital Corp (PFN). Under the terms of the option agreement, PFN can earn a 60% interest in the property over a four year period by completing $3.5 million in exploration expenditures, paying $200,000 and providing a total of 250,000 PFN shares to Alto. On September 26, 2011, PFN assigned its interest to Next Gen Metals Inc. Next Gen is responsible for all remaining cash payments and exploration expenditures due to be paid or incurred, as the case may be, under the Initial Option with Alto, along with any costs and expenditures associated with any resultant joint venture that arises between Next Gen and Alto. PFN will continue to be responsible for issuances of common shares to Alto under the Initial Option until the date of exercise of the Initial Option and the transfer and registration of the Option Interest from PFN to Next Gen in accordance with the terms of the Letter Agreement between Next Gen and PFN.
PFN has fulfilled its obligations for the first two years of the option term as outlined in the agreement.
About the DAC Deposit
The main area of mineralization on the Destiny Gold Property is the DAC Deposit which occurs over a strike length of about 600 m. In this area, five identifiable intervals of quartz veining and shear-related alteration zones carry significant gold mineralization for which a Mineral Resource Estimate Report was prepared in 2011.
The Mineral Resource Estimate Report was prepared for the DAC Deposit by Wardrop, a Tetra Tech Company (Wardrop) and filed on Sedar on March 7, 2011. Using a cut-off grade of 0.5 g/t gold and the Inverse Distance Squared (ID2) estimation method, the five gold zones that make up the DAC Deposit contain an Indicated Resource of approximately 10.8 million tonnes with an average grade of 1.05 g/t gold (364,000 contained ounces). In addition, the Inferred Resource totals approximately 8.3 million tonnes with an average grade of 0.92 g/t gold (247,000 contained ounces). The resources block considers the mineralization to start at approximately 15 m below surface down to a depth of 400 m for the deepest zone. The mineralization remains open below 400 m. For details regarding the resource estimate methods and calculation parameters used in preparation of the Report please see the news releases issued by Alto and PFN on March 7, 2011.
The Report can be view on each of the Company's websites at www.nextgenmetalsinc.com and www.altoventures.com
Mineral Resources are not Mineral Reserves and by definition do not demonstrate economic viability.
The DAC Deposit remains open along strike and to depth and is one of several significant gold occurrences along a four kilometre segment of the Despinassy Shear Zone. The Darla Zone, which lies one km east of the DAC Zone, was discovered in 2006. At this location, drilling intersected 19.5 g/t gold across 2.1 m and 20.6 g/t over 0.8 m . The occurrence of high grade gold mineralization in the Darla, DAC and 20 and 21 zones clearly indicates that the mineralizing system occurs across a significant portion of the property. The gold mineralization at these occurrences starts near surface, and with additional drilling these targets could add significant contained ounces to the already defined resources at the DAC Deposit.
Qualified Person Statement
This news release has been reviewed and approved for technical content by Mike Koziol, P. Geo, a qualified person under the provisions of national instrument 43-101.
About Next Gen Metals Inc
Next Gen is a mineral exploration company whose current focus is on silver, gold and base metals projects in North America. The Company has acquired a 60% option interest (TSX.V: ATV) on the Destiny Gold Project (Indicated Resource of 364,000 ounces plus an Inferred Resource of 247,000 ounces of gold) In addition, Next Gen is presently advancing the Silver Chalice Project, located in Alaska, and the Fate Gold Project adjacent to the Destiny Gold Project, both of which are located in the Abitibi Greenstone Belt of Northwest Québec, one of the most famous gold and base metals regions in the world. Next Gen continues to aggressively negotiate for additional advanced-stage silver, gold and base metal projects on an international scale.
Next Gen http://www.nextgenmetalsinc.com is the newest company to join the International Metals Group
About Alto Ventures Ltd
Alto Ventures Ltd. Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold and base metals properties. The Company is active in Quebec in the Abitibi greenstone belt on the Destiny gold property and in Ontario, exploring in the Beardmore-Geraldton gold belt. In Manitoba, the Company is focused on the gold and base metals potential of the highly prospective but relatively under-explored Oxford Lake property.
For more details regarding the Company's projects, please visit our website at www.altoventures.com.
ON BEHALF OF THE BOARD,
Rick Mazur, P. Geo.,
CEO & Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
President and Director
ALTO VENTURES LTD.
Unit 8 -- 1351D Kelly Lake Rd
Sudbury, ON., P3E 5P5
Email: [email protected]
Director, Corporate Affairs
ALTO VENTURES LTD.
910-475 Howe Street
Vancouver, BC, V6C 2B3
Email: [email protected]
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