Alto and Pacific North West prove up DAC zone

Pacific North West Capital (PFN-T) and Alto Ventures (ATV-V) announced solid results from the Destiny Gold project in Quebec.

Highlights from the first phase of infill drilling included 33.57 grams over 0.5 metres, 7.2 grams gold over 0.5 metres and 5.3 grams gold over 2 metres. The companies estimate that true widths are 80 to 90% of the downhole lengths.

But such high grade intercepts weren’t the only part of the story. While higher grade mineralization occurs in quartz veins, those veins are situated within a wider shear-related alteration system. The wider alteration zones returned thicker, if lower grade sections, including 21 metres grading1.39 grams gold and 22.4 metres grading 0.91 grams gold.

All of the latest intercepts came from three holes, and all were sunk into the DAC deposit, where the companies are looking to update a resource estimate done in 2007.

That estimate gave the DAC deposit an indicated resource of 166,863 tonnes grading 6.88 grams gold for 36,892 oz. and an inferred resource of 444,753 tonnes grading 4.46 grams gold for 63,839 oz.

The latest drill program confirms continuity of gold mineralization between past drilled holes which had been spaced from 100m to 200m apart.

The companies say the deposit remains open along strike and at depth.

In all, phase one of drilling covered 5,600 metres in 14 holes. Results from six of those holes have yet to come in and the companies will wait for them before starting a second phase of drilling, which should begin in February.

The first five holes of the program — results of which were released in early December of last year — were highlighted by 44.39 grams gold; 39.5 grams gold and 20.6 grams gold all across 0.5 metres

The Destiny Gold project sits roughly 75-km north of Val d’Or in the Abitibi region of Quebec.

The DAC zone represents the main area of mineralization and stretches across a strike length of 600 metres.

While Pacific North West is funding the drilling programs, Alto is currently acting as the project manager.

Pacific North West can earn a 60% stake in the project by paying Alto $200,000 in cash, issuing it 250,000 of its common shares and by spending $3.5 million on exploration over four years.

In Toronto on Jan. 15 Alto shares were trading flat at 5¢ on 4.5 million shares traded, while Pacific North West was up a penny to 22¢ on 420,000 shares traded.