Altoro tables rhodium results from Pedra Branca

Junior Altoro Gold (ATG-V) has tabled encouraging rhodium assay results from drill core pulled from the Pedra Branca platinum-palladium project in Brazil.

Half of the samples were derived from the Esbarro zone; the other half, from the Trapia West zone. Results are shown in the accompanying table.

The company states that the presence of rhodium could increase the value of the in situ rock by about 8-20%.

Meanwhile, the Hunter-Dickinson group, through Rockwell Ventures, has acquired the option to earn a 60% interest in the project. In return, Rockwell must pay Altoro an initial US$40,000, spend US$7 million on exploration and issue 500,000 shares to Altoro over four years. During the first year, Rockwell is required to spend at least US$1 million on a work program. Once the 60% interest is earned, Altoro will have the option of maintaining its 40% working interest or selling its share to Rockwell.

The agreement will also see Hunter-Dickinson arrange a private placement totalling $290,000 by issuing 483,333 units at 60 each. A unit will consist of one share and one share purchase warrant exercisable for an additional share at 60 for a period of one year. Proceeds will be used to explore the property.

In 1999. Altoro tested Pedra Branca with 18 holes. Seven of these targeted the Trapia West zone; one tested the Trapia One zone; eight tested the Esbarro zone; and two tested the Ipueiras zone. Highlights were reported from four zones:

– Esbarro zone — hole 4 hit 22.3 metres grading 2.9 grams combined platinum-palladium per tonne, starting at a down-hole depth of 11.1 metres. This included a 2.3-metre interval of 4.1 grams platinum and 5.2 grams palladium;

– Trapia West — hole 1 cut 14.2 metres averaging 2.1 grams combined platinum-palladium from 11.7 metres down-hole;

– Trapia One — hole 1 cut 20.2 metres grading 0.9 gram combined platinum-palladium from 32.8 metres down-hole;

The Ipueiras zone returned sub-economic values. Drilling to date represents less than 1% of the potentially mineralized horizon seen at the surface. Pedra Blanca is 250 km southwest of the port city of Fortaleza in Ceara state.

At presstime, the price of rhodium was US$2,400 per oz., or US$85 per gram.

Hole From-ToIntervalPalladiumPlatinumRhodium

(metres)(metres)(g/t)(g/t)(g/t)

547.98-48.47 0.492.01.040.16

48.47-49.45 0.981.170.480.03

49.45-50.31 0.865.875.530.36

824.15-24.68 0.536.634.950.25

24.68-25.58 0.93.441.810.11

25.58-26.74 1.163.632.360.15