| ||Tue Jan 17, 2012|
Alto Ventures and Next Gen Metals Resume 3,500 m Drill Program on Destiny Gold Project, Val d'Or Area, Quebec
January 17, 2012, Vancouver, BC - Alto Ventures Ltd. ("Alto") TSX-V: ATV and Next Gen Metals Inc. ("Next Gen") TSX-V: N are pleased to announce the resumption of the 3,500 m drill program on the Destiny Gold project, located near Val-d'Or, Quebec.
- 3,500 metre diamond drill program in progress to test the strike extension of the DAC Deposit
- Drilling will test the under-explored one kilometre section of the Despinassy Shear between the DAC Deposit and the Darla Zone
- As of January, 2011 the DAC Deposit contains an Indicated Resource of 364,000 ounces of gold plus an Inferred Resource of 247,000 ounces of gold.
The drill program is focused mainly on testing the under-explored area between the DAC Deposit and the Darla Zone at shallow depths (Figure 1). The DAC Deposit is one of several significant gold zones along a four kilometre segment of the Despinassy Shear Zone. As of January 2011, the DAC Deposit has an Indicated Resources of 10.8 Mt grading 1.05 g/t Au (at 0.5 g/t Au cutoff) for 364,000 ounces of gold and Inferred Resources of 8.3 Mt grading 0.92 g/t Au (at 0.5 g/t Au cutoff) for 247,000 ounces of gold.
Previous drilling on the Darla Zone, one kilometre to the east, intersected high gold 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 previously been tested by only two drill holes, and therefore remains under-explored. The assay results for the two holes indicate that the gold-mineralizing system was active between DAC ands Darla, such that there is excellent potential for discovery of new gold zones here (Figure 1). If results from these widely spaced holes are positive, infill drilling will be planned to generate sufficient data for the preparation of an updated NI43-101 compliant Mineral Resource Estimate report incorporating results from previous Darla drilling and all new data from between the Darla Zone and the DAC Deposit.
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.
On September 26, 2011, Pacific North West Capital assigned its interest in the initial Option Agreement with the property owner, Alto Ventures Ltd., to Next Gen Metals Inc. Under the terms of the Option Agreement, 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 Ventures Ltd.
PFN has fulfilled its obligations for the first two years of the Option Agreement and will continue to be responsible for issuances of common shares to Alto.
Figure 1- Location map of 2011-2012 drill program in the under-explored area between DAC Deposit and Darla Zone
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 ("IMG") (www.internationalmetalsgroup.com).
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]
You can view the Next News Releases item: Thu Feb 16, 2012, Alto Completes Sale Of Its 40% Interest In The Coldstream Gold Project, Ontario For $2.5 Million
You can view the Previous News Releases item: Wed Jan 4, 2012, Alto Closes Initial Tranches of Private Placement
You can return to the main News Releases page, or press the Back button on your browser.