Noranda Exploration discovered Alto Ventures’ (ATV-V) East Coldstream gold deposit in the Burchell Lake area of Ontario, about 100 km west of Thunder Bay. Between 1988 and 1991, Noranda drilled 37 holes into the ground, coming up with an historic resource of 5.1 million tonnes averaging 1.4 grams gold per tonne.
Noranda’s resource estimate was based on relatively shallow drilling at three zones, the Main, North and East. During Alto’s 2010 winter drill program, hole 22 in the Sanders zone intersected a 27.5-metre-wide zone averaging 1.16 grams gold, including 10.05 grams gold over 2.1 metres.
Highlights from Alto’s most recent 8,000-metre drill program include: 3.35 grams gold over 16.9 metres within a 34.8-metre-wide zone averaging 1.84 grams gold in hole 32 in the East zone, 7.51 grams gold over 3.4 metres within a 30.4-metre-wide zone averaging 1.31 grams gold in hole 26 in the Main zone, and 2.44 grams gold over 5.3 metres within a 16.2-metre-wide zone averaging 1.02 grams gold in hole 29, also in the Main zone. Hole 28 in the Main zone returned 2.02 grams gold over 8.45 metres, while hole 27, also in the Main zone, cut 0.55 gram gold over 9.1 metres.
The deposit is open along strike and at depth and results from the first three holes of the program drilled into the North and Main zones were reported on July 21, and included 3.07 grams gold over 13.9 metres within a 34.5-metre-wide zone averaging 1.93 grams gold.
So far, all of the drill holes reported from this year’s program contain gold and most have intersected wide mineralized zones that include multiple intersections of high-grade gold in variable core lengths, the company says.
The Coldstream property is adjacent to the large tonnage, low-grade Moss Lake gold deposit, where a recently reported National Instrument 43-101 resource estimate includes 1.1 million oz. gold in the indicated category and 520,000 oz. gold in the inferred.
The northeast end of the Moss Lake deposit abuts Coldstream’s southwestern boundary. Moss Lake Gold Mines (MOK-V), which holds the deposit, is a 56%-owned subsidiary of Wesdome Gold Mines (WDO-T).
Alto’s Coldstream property includes 53 sq. km of staked and patented mining claims along the Trans-Canada Highway, an area of good infrastructure with a major power line. A CN Rail line also passes just north of the property.
In May 2009, the junior exploration and development company signed an option agreement with Foundation Resources (FDN-V), under which Foundation can earn an initial 60% interest by spending $3 million over four years and issuing 1 million Foundation shares to Alto. Foundation can earn an additional 10% by funding the completion of a feasibility study.
Gold at Coldstream is associated with disseminated pyrite and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) mafic to intermediate metavolcanics and quartz-feldspar porphyry intrusive rocks.
The news sent Alto’s shares up 9.1% or half a penny to 6¢ per share in mid-afternoon trading, with 2.2 million shares changing hands.
Be the first to comment on "Alto excited by Coldstream"