Diogenes of Sinope
12 years ago
An interesting read:
Gold mining stocks: Why they could go to the Moon
11/30/2011
If you bought a portfolio of top-performing gold juniors before 1979, your initial investment could've grown 23 times in just two years
This may sound sensationalistic, but I think the odds are very high that, on average, gold producers will sell in the $200 range before this bull market is over. With most of them trading between $20 and $40, the returns could be tremendous. And while the typical junior won't reach the same price level, their percentage returns will be much greater and potentially life-changing, as you're about to see.
The timing of this article may seem incongruous, given the recent weak performance of gold and gold stocks. But that was the identical situation in each of the past manias: both the metal and the equities didn't excel until the frenzy kicked in. The following documentation is actually a fresh reminder of why we think you should hold on to your positions – or start accumulating them, if you haven't already.
So, are my projections based on some fantastical gold price, or a complex formula for gold stock valuations? Nope. I base my projections simply on what gold stocks have done in the past. And to the surprise of many investors, it's a performance they've logged several times, making the following prices very believable if you're bullish on gold.
It comes with a warning, though:
Caution: the following tables may cause excitement, drooling, or the temptation to go all in. Read and invest at your own risk.
You've undoubtedly read about gold's spectacular climb in 1979-'80. And you've likely heard how well gold stocks performed in general. But most researchers haven't identified exact returns from specific companies during this era.
The reason? Digging up hard data prior to the mid 1980s, especially for the junior explorers, is difficult because it hasn't been computerized. So we sent a couple of researchers to the library to view the Wall Street Journal on microfiche. We also relied on Scott Hunter of Haywood Securities; Larry Page, president of the Manex Resource Group; and the dusty archives at the Northern Miner. (This means our tables, while accurate, are not necessarily comprehensive.)
Let's get started…
Quintessential bull market: 1979-1980
The granddaddy of gold bull markets occurred during the 1970s decade, one culminating in an unabashed mania in 1979 and 1980. Gold peaked at $850 an ounce on January 21, 1980, rising 276% from the beginning of 1979. Yes, the price of gold on the last trading day of 1978 was a mere $226 an ounce.
Here's a sampling of gold producers from this era. What you'll notice in addition to the mouthwatering returns is that gold stocks peaked not until nine months after gold.
Returns of Producers in 1979-1980 Mania
Company Price on 12/29/1978 Sept. 1980 Peak Return
Campbell Lake Mines $28.25 $94.75 235.4%
Dome Mines $78.25 $154.00 96.8%
Hecla Mining $5.12 $53.00 935.2%
Homestake Mining $30.00 $107.50 258.3%
Newmont Mining $21.50 $60.62 182.0%
Dickinson Mines $6.88 $27.50 299.7%
Sigma Mines $36.00 $57.00 58.3%
Giant Yellowknife Mines $11.13 $39.00 250.4%
AVERAGE 289.5%
You'll see there was great variability among the returns of these companies. That's why, even if you believe we're destined for an "all-boats-rise" scenario, you still want to own the better companies.
Today, Barrick is selling for $47.59 (as of November 25). If our mania started now and mimicked the average 289.5% return, ABX would reach $185.36 at its peak. GDX at $54.79 today would hit $213.40.
Keep in mind, though, that our data measure the exact top of each company's price. Most investors, of course, don't sell at the very peak. If we were to able to grab, say, the middle 80% of the climb, that's a return of 231.6%. Barrick would hit $157.80 and GDX $181.68 in that scenario… still tantalizing returns.
And with all due respect to Barrick management, there are gold stocks we're convinced will far outperform the largest gold company in the world in the coming mania.
Here's a sampling of how junior gold stocks performed in the same period, along with the month each peaked.
Returns of Juniors in 1979-1980 Mania
Company Price on 12/29/1978 Price Peak Date of Peak Return
Carolin Mines $3.10 $57.00 Oct. 80 1,738.7%
Mosquito Creek Gold $0.70 $7.50 Oct. 80 971.4%
Northair Mines $3.00 $10.00 Oct. 80 233.3%
Silver Standard $0.58 $2.51 Mar. 80 332.8%
Lincoln Resources $0.78 $20.00 Oct. 80 2,464.1%
Lornex $15.00 $85.00 Oct. 80 466.7%
Imperial Metals $0.36 $1.95 Mar. 80 441.7%
Anglo-Bomarc Mines $1.80 $6.85 Oct. 80 280.6%
Avino Mines 0.33 5.5 Dec. 80 1,566.7%
Copper Lake $0.08 $10.50 Sep. 80 13,025.0%
David Minerals $1.15 $21.00 Oct. 80 1,726.1%
Eagle River Mines $0.19 $6.80 Dec. 80 3,478.9%
Meston Lake Resources $0.80 $10.50 Oct. 80 1,212.5%
Silverado Mines $0.26 $10.63 Oct. 80 3,988.5%
Wharf Resources $0.33 $9.50 Nov. 80 2,778.8%
AVERAGE 2,313.7%
If you bought a reasonably diversified portfolio of top-performing gold juniors prior to 1979, your initial investment could've grown 23 times in just two years. If you managed to grab 80% of that move, your account balance still would've grown 1,850%.
This means a junior priced at 50 cents today that goes on to become a Mania Phase winner could sell for $12 at the top, or $9.75 at 1,850%. If you own 10 juniors, imagine just one of them matching Copper Lake's return.
Here's what returns of this magnitude could mean to you. Let's say you have $10,000 to devote to a portfolio of the best-of-the-best gold juniors. If our mania someday matches the classic 1980 blow-off top, your portfolio could be worth $241,370 at its peak… or about $195,000 if you manage to grab the middle 80%.
This all assumes, of course, that you sell to realize the profit. If you don't take the money and run at some point, you may end up with little more than tears to fill an empty beer mug. Consider this: many junior gold stocks, including some in the above list, dried up and blew away after October 1980. Investors who held to the bitter end not only saw all their gains evaporate but lost their entire investments as well. Keep that in mind, because all bull markets eventually come to an end – even golden ones.
Returns from that era have been written about before. So I can hear some investors saying, "Yeah, but that only happened once."
Au contraire. Read on…
Hemlo rally of 1981-1983
Many investors don't know that there have been several mini-manias in gold and especially gold stocks outside of the 1979-'80 period.
Ironically, gold was flat during the two years of the “Hemlo rally.” But something else ignited a bull market. Discovery. Here's how it happened…
Up until this time, most exploration was done by teams from the major producers. But because of lagging gold prices and the resulting need to cut overhead, they began to shrink their exploration staffs, unleashing a swarm of experienced geologists armed with the knowledge of high-potential mineral targets they'd explored while working for the majors. Many formed their own companies and subsequently went after these targets.
This led to a series of spectacular discoveries, the first of which occurred in mid-1982, when Golden Sceptre and Goliath Gold discovered the Golden Giant deposit in the Hemlo area of eastern Canada. Gold prices rallied that summer, setting off a mini bull market that lasted until the following May. The public got involved, and as you can see, the results were impressive for such a short period of time.
Returns of Producers Related to Hemlo Rally of 1981-1983
Company 1981 Price Price Peak Date of High Return
Agnico-Eagle $9.50 $21.00 Aug. 83 121.1%
Sigma $14.13 $24.50 Jan. 83 73.4%
Campbell Red Lake $16.63 $41.25 May 83 148.0%
Sullivan $3.85 $6.00 Mar. 84 55.8%
Teck Corp Class B $17.00 $21.88 Jun. 81 28.7%
Noranda $33.75 $36.38 Jun. 81 7.8%
AVERAGE 72.5%
Gold producers, on average, returned over 70% on your money during this period. While this isn't the same spectacular gains from just a few years earlier, keep in mind this occurred in about 12 months' time. This would be akin to a $30 gold stock soaring to $51.75 by this time next year because it's located in a significant discovery area.
Once again, it was the juniors that brought the dazzling returns.
Returns of Juniors Related to Hemlo Rally of 1981-1983
Company 1981 Price Price Peak Date of High Return
Corona Resources $1.10 $61.00 May 83 5,445.5%
Golden Sceptre $0.40 $31.00 May 83 7,650.0%
Goliath Gold $0.45 $32.00 Mar 83 7,011.1%
Bel-Air Resources $0.81 $1.60 Jan. 83 97.5%
Interlake Development $2.10 $6.40 Mar. 83 204.8%
AVERAGE 4,081.8%
The average return for these junior gold stocks that had a direct interest in the Hemlo area exceeded a whopping 4,000%. A 50-cent junior stock today would exceed $20.
This is especially impressive when you realize it occurred without the gold stock industry as a whole participating. This tells us that a big discovery can lead to enormous gains, even if the greater industry is flat. In other words, we have historical precedence that humongous returns are possible without a mania, by owning stocks with direct exposure to a discovery area. There are numerous examples of this in the past 10 years, as any long-time reader of the International Speculator can attest.
By May 1983 – roughly a year after it started – gold prices started back down again, spelling the end of the bull market. Another reminder that one must sell to realize a profit.
Roaring '90s
Junior exploration companies were now starting to collect on the "intellectual capital" they'd inherited from the majors. Another series of gold discoveries in the mid-1990s set off one of the most stunning bull markets in the current generation.
Companies with big discoveries included Diamet, Diamond Fields, and Arequipa. This was also the time of the famous Bre-X scandal, a company whose management was later found to have been "salting" drill intercepts.
[One of Doug Casey's biggest wins during this time was Diamond Fields. He started buying the stock around 25 cents and later sold at prices as high as $120. You can do the math. To read more about his other spectacular wins in The 1970s Interview with Doug Casey...]
By the summer of '96, investor interest had sparked a minor mania, and companies with little more than a few drill holes were selling for $20 a share. The table below, which includes some of the better-known names of the day, is worth the proverbial thousand words. And if you're the kind of investor with the courage to buy low and willingness to sell during a frenzy, it can be worth a million dollars.
Returns of Producers in Mid-1990s Bull Market
Company Pre-Bull Market Price Price Peak Date of High Return
Kinross Gold $5.00 $14.62 Feb. 96 192.4%
American Barrick $28.13 $44.25 Feb. 96 57.3%
Placer Dome $26.50 $41.37 Feb. 96 56.1%
Newmont $47.26 $82.46 Feb. 96 74.5%
Manhattan $1.50 $13.00 Nov. 96 766.7%
Cambior $10.00 $22.35 Jun. 96 123.5%
AVERAGE 211.7%
The average producer more than tripled your money during this period. Once again, these gains occurred in a relatively short period of time, in this instance inside of two years.
Here's how winning juniors performed. Hold on to your hat.
Returns of Juniors in Mid-1990s Bull Market
Company Pre-Bull Market Price Price Peak Date of High Return
Cartaway $0.10 $26.14 May 96 26,040.0%
Golden Star $6.00 $27.50 Oct. 96 358.3%
Samex Mining $1.00 $7.20 May 96 620.0%
Pacific Amber $0.21 $9.40 Aug. 96 4,376.2%
Conquistador $0.50 $9.87 Mar. 96 1,874.0%
Corriente $1.00 $19.50 Mar. 97 1,850.0%
Valerie Gold $1.50 $28.90 May 96 1,826.7%
Arequipa $0.60 $34.75 May 96 5,691.7%
Bema Gold $2.00 $12.75 Aug. 96 537.5%
Farallon $0.80 $20.25 May 96 2,431.3%
Arizona Star $0.50 $15.95 Aug. 96 3,090.0%
Cream Minerals $0.30 $9.45 May 96 3,050.0%
Francisco Gold $1.00 $34.50 Mar. 97 3,350.0%
Mansfield $0.70 $10.50 Aug. 96 1,400.0%
Oliver Gold $0.40 $6.80 Oct. 96 1,600.0%
AVERAGE 3,873.0%
Many analysts refer to the 1970s bull market as the granddaddy of them all – and to a certain extent it was – but you'll notice that the average return here exceeds what the juniors did in the 1979-'80 market.
This is akin to that 50-cent junior stock today reaching $19.86… or $16 if you snag 80% of the move. A $10,000 portfolio could grow to over $397,000 (or over $319,000 on 80%).
Gold stocks and the Greater Depression
Those of you in the deflation camp may dismiss all this because you're convinced The Great Deflation is ahead. Fair enough. But you'd be wrong to assume gold stocks can't do well in that environment.
Take a look at the returns of the two largest producers in the U.S. and Canada, respectively, during the Great Depression.
Returns of Producers During the Great Depression
Company 1929 Price 1933 Price Total Gain
Homestake Mining $65 $373 474%
Dome Mines $6 $39.50 558%
During a period of soup lines, crashing stock markets, and a fixed gold price, large gold producers handed investors five and six times their money in four years.
If deflation "wins," we still think gold equity investors can, too.
The catch
Before you sell your kids to buy gold stocks, be aware of the fine print: history may not repeat. There's no law that says we have to get a mania; it's a good bet, we've no doubt, but it could be different than what we saw before – maybe the mania occurs just in gold and not the stocks… or maybe it's only in certain geographical areas… or it takes longer than what some investors have the patience for.
The point here is simple: don't invest so much that you get wiped out if it doesn't come to pass.
In the end, though, we think the efforts by governments around the world to reflate the economy will work. Throughout history, a fiat currency system has never lasted – not even once. Eventually, they all fade away. And whether or not gold (or silver) are somehow figured into the monetary replacement, the odds are high that we'll see a mania of epic proportions in our industry, as the world's current fiat currencies implode. Truly life-changing gains will be reaped by those with the foresight, courage, and cash to act before it arrives.
So, yes, someday we think your favorite gold stock will sell for $200. Or perhaps a lot more.
GLTA!
sumisu
12 years ago
Alto Sells Its 40% Interest in the Coldstream Gold Project, Ontario to Foundation Resources
Press Release Source: Alto Ventures Ltd. On Tuesday November 8, 2011, 12:32 pm EST
http://finance.yahoo.com/news/Alto-Sells-Its-40-Interest-in-ccn-3949671149.html?x=0&.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2011) - Alto Ventures Ltd. (TSX VENTURE:ATV - News; "Alto") and Foundation Resources Inc. (TSX VENTURE:FDN - News; "Foundation") have entered into a binding letter of Intent pursuant to which Foundation will acquire Alto's 40% interest in the Coldstream Gold Project. The Coldstream Project is host to a number of significant gold targets including the East Coldstream deposit which has a NI 43-101 resource estimate of 763,276 ounces gold (30.5 million tonnes at 0.78 g/t gold) in the Inferred and 96,400 ounces gold (3.5 million tonnes at 0.85 g/t gold) in the Indicated categories (To view Figure 1 please visit the following link: http://media3.marketwire.com/docs/atv118_F1.pdf). This consolidation in ownership gives Foundation a 100% interest in the property.
In consideration of the acquisition of Alto's 40% interest, Foundation will pay aggregate consideration of $2,500,000 payable through the issuance of 10,000,000 common shares at a price of $0.12 per share and $1,300,000 in cash over a six month period. On the Closing Date, Foundation will pay to Alto $350,000 in cash and issue Alto such number of common shares, up to 10 million shares, as will not result in Alto becoming a control person of Foundation. Within six months of the closing date, Foundation will pay to Alto $950,000 in cash, subject to a potential three month extension period, and issue the balance of any common shares due to Alto. As part of the agreement Alto will vote in support of management for a period of three years and will not tender its shares to any take-over bid not recommended by Foundation's Board of Directors.
About the Coldstream Project
There are currently five (5) known significant gold mineralization areas occurring within the claim boundaries of the Coldstream Property that are currently subject to aggressive exploration and development campaigns by the Company (Figure 1). The exploration targets include: East Coldstream Deposit, Iris Zone, Goldie Zone, Span Lake deposit and the Burchell West prospect. Of these, the East Coldstream Deposit is the most advanced of all other targets for which a NI 43-101 resource estimate of 763,276 ounces gold in the Inferred and 96,400 ounces gold in the Indicated categories has been calculated and reported on September 20, 2011. The 6,410-hectare Property, located along the Trans Canada Highway 115 km west of Thunder Bay in northwestern Ontario, occurs within the western Shebandowan Greenstone Belt (SGB) of the Wawa Subprovince which is host to some of the richest gold mines in Canada (e.g., Hemlo gold camp).
Gold on the Coldstream Property occurs along 16 kilometres of the 25 kilometre long, northeast-southwest trending North Coldstream-Moss Lake deformation zone and its subsidiary structures.
Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person for the Coldstream Project and has reviewed and approved the technical content of this news release.
About Alto Ventures Ltd.
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold properties. Alto is active in Quebec in the Abitibi greenstone belt on the Destiny gold property and in Ontario, exploring in the Beardmore-Geraldton gold belt.
For more details regarding Alto's projects, please visit our website at www.altoventures.com.
ON BEHALF OF THE BOARD,
Richard J. Mazur, P. Geo., CEO
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.
Contact:
Mike KoziolAlto Ventures Ltd.President and Director705-522-6372705-522-8856 (FAX)koziol@altoventures.comRick MazurAlto Ventures Ltd.CEO & Director604-689-2599604-689-3609 (FAX)info@altoventures.comwww.altoventures.com
sumisu
13 years ago
Alto Ventures Ltd.: 254.00 g/t and 7.05 g/t Gold Intersected over 0.50 m and 3.20 m Respectively at Iris Lake in Northwestern Ontario
6 hours 33 minutes ago - Marketwire via Comtex
MarketwireAlto Ventures Ltd. (TSX VENTURE: ATV)
Key Point Summary:
-- 254.00 g/t gold over 0.50 m in drill hole IL-11-12
-- 7.05 g/t gold over 3.20 m within 29.70 metre-wide zone averaging 1.27 g/t gold in drill hole IL-11-20
-- Results of Iris Lake drill holes were not included in the recently released compliant resource estimate for the East Coldstream Deposit(763,276 ounces gold Inferred and 96,400 ounces gold Indicated)
Alto Ventures Ltd. ("Alto") and Foundation Resources Inc. (TSX VENTURE: FDN) ("Foundation") or together "the Companies" are pleased to announce the results of all drill holes from the Iris Lake area, located approximately 1.5 km north of the East Coldstream Deposit ("Deposit") on their Coldstream Property ("Property"), northwestern Ontario. Upon recently completing the 6,133 metre drill program this summer on the Property, 2,236 metres were drilled in the Iris Lake area for a total of eleven holes. The remaining 3,897 metres were utilized for further expansion of the East Coldstream Deposit for which a NI 43-101 compliant resource estimate of 763,276 ounces gold Inferred and 96,400 ounces gold Indicated has been calculated and reported on September 20, 2011. Foundation is the operator of this program and owns a 60% interest in the Property and Alto owns the remaining 40%.
Table of Significant Gold Assays
---------------------------------------------------------------------------
From To Width Gold
Drill Hole (metres) (metres) (metres) (grams/tonne)
---------------------------------------------------------------------------
IL-11-10 77.40 78.55 1.15 5.55
---------------------------------------------------------------------------
---------------------------------------------------------------------------
IL-11-12 199.60 200.10 0.50 254.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
IL-11-17 24.00 34.00 10.00 0.45
---------------------------------------------------------------------------
and 62.40 71.00 8.60 1.09
---------------------------------------------------------------------------
Including 62.40 63.55 1.15 4.74
---------------------------------------------------------------------------
Including 69.65 71.00 1.35 2.15
---------------------------------------------------------------------------
---------------------------------------------------------------------------
IL-11-19 82.10 84.00 1.90 1.33
---------------------------------------------------------------------------
and 134.25 141.80 7.55 1.15
---------------------------------------------------------------------------
Including 140.50 141.80 1.30 4.21
---------------------------------------------------------------------------
IL-11-20 100.80 130.50 29.70 1.27
---------------------------------------------------------------------------
Including 100.80 104.00 3.20 7.05
---------------------------------------------------------------------------
Including 128.50 130.50 2.00 2.23
---------------------------------------------------------------------------
(i) Mineralized zones generally start at 0.1 g/t gold and assay averages may include minimal intervals of waste material. No top cuts of assays were used.
All intervals are represented as down-hole core lengths with true widths estimated at 70 to 75 percent.
All holes completed in the Iris Lake area are located 1.5 km north of the East Coldstream Deposit within the northeastern part of the Coldstream Property (see Figure 1). The purpose of these drill holes is to expand the gold mineralization laterally to both northeast and southwest directions from the site of high-grade gold discovered during the 2011 winter drilling program (see news release dated March 22, 2011). Together, these holes and the holes that were completed previously define a gold mineralization area that measures approximately 25 to 70 metres in width and 630 metres in length (Figure 1). The mineralized area occurs within a broad deformation zone consisting of variably sheared and altered (silica, chlorite, hematite and epidote) mafic and felsic metavolcanic rocks.
To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/atv1027-fig1.pdf
Drill hole IL-11-20 was collared approximately 120 metres southwest of the high-grade hole IL-11-02 (8.39 g/t gold over 11.00 m) reported on March 22, 2011. IL-11-20 intersected 7.05 g/t gold over 3.20 m within a 29.70 metre-wide zone averaging 1.27 g/t gold. Drill hole IL-11-19, located about 70 metres northeast from the hole IL-11-02 intersected 4.21 g/t gold over 1.30 m within a 7.55 metre-wide zone averaging 1.15 g/t gold. Drill hole IL-11-17, located approximately 105 m northeast from hole IL-11-19 along the same mineralization trend, intersected, albeit discontinuously, anomalous to strongly anomalous gold values over a 47.00 metre-wide core length. The two best mineralized intercepts within this zone include a 4.74 g/t gold over 1.15 m within a 8.60 metre-wide zone averaging 1.09 g/t gold and a 0.45 g/t gold averaging over 10.00 metre core length.
Drill holes IL-11-10 and 12, which define the northeastern part of the 630 metre long mineralized Iris Lake Zone, intersected 5.55 g/t and 254.00 g/t gold over 1.15 and 0.50 m, respectively. Holes IL-11-13 to 16, and 18 returned weakly anomalous gold values within this newly defined Iris Lake Zone. The bonanza gold grade (254.00 g/t Au) in hole IL-11-12 is attributed to the presence of visible gold observed in the core at the time of sampling. The visible gold sample was subjected to pulp metallic screening procedures by the ALS Chemex Lab to ensure that the value is an accurate representation of gold content in the core sample.
"Management of the both Foundation and Alto are extremely pleased with very positive drill results from the 2011 drilling program at the Iris Lake which successfully delineated additional new potentially economic mineralized zones located 1.5 km north of the East Coldstream Deposit," states Ike Osmani, President and Director of Foundation. He adds, "The persistent and widespread distribution of anomalous to high-grade gold mineralization occurring along the northern margin of the Iris Lake Deformation Zone has carved out a 25 to 70metre by 630metre mineralized horizon open in all directions for further exploration and development."
The Iris Lake Area
The Iris Lake Zone is located 1.5 km north of the East Coldstream Deposit (763,276 ounces gold Inferred and 96,400 ounces gold Indicated) in the northeastern part of the Coldstream property. The Iris Lake area is underlain primarily by mafic and felsic metavolcanic rocks. Numerous dikes and sills of quartz-feldspar and feldspar porphyries have been emplaced within this mafic-felsic volcanic rock package. All these rock types have been variably altered (silica, hematite, chlorite, epidote), mineralized (pyrite and chalcopyrite) and deformed by up to 500 m wide and 2,100 m long Iris Lake Deformation Zone (ILDZ). The ILDZ is a northeast-striking structure with alteration similar to the North Coldstream Shear Zone (NCSZ) structure hosting the East Coldstream Deposit located 1.5 km south of the Iris Lake area.
Quality Assurance/Quality Control (QA/QC)
Foundation has implemented a quality control (QA/QC) program which includes the use of commercially produced standards and blanks. Samples of split NQ core are transported by Company personnel to the sample preparation lab of ALS Chemex Laboratory in Thunder Bay where they were crushed and a 1000-gram pulp was prepared. The pulp was then shipped to ALS Chemex Laboratory in North Vancouver, B.C. for analyses. The gold assaying method uses a standard Fire Assay with ICP-AES technique on a 30-gram pulp material taken from a 1000g split from the submitted sample. One core sample with visible gold was analyzed using pulp metallic screening procedures to ensure that the value is an accurate representation of gold content in the sample. For more details of QA/QC procedures, please refer to Foundations July 21, 2010 news release.
Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person for the Coldstream Project supervises the drill program and has reviewed and approved the technical content of this news release.
About the Coldstream Property
The 6,234-hectare Coldstream Property is located along the Trans Canada Highway 115 km west of the City of Thunder Bay, Ontario. The area is road accessible and has excellent infrastructure with a major power line and CN rail line passing just north of the property. Skilled labour is readily available locally.
For more details regarding the Coldstream Property, please visit our website at http://www.altoventures.com.
About Alto Ventures Ltd.
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold 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 and the Coldstream project in the Shebandowan gold district.
For more details regarding the Company's projects, please visit our website at www.altoventures.com.
ON BEHALF OF THE BOARD,
Richard J. Mazur, P.Geo., CEO
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.
Contacts:
Alto Ventures Ltd.
Mike Koziol
President and Director
705-522-6372
705-522-8856 (FAX)
koziol@altoventures.com
Alto Ventures Ltd.
Rick Mazur
CEO & Director
604-689-2599
604-689-3609 (FAX)
info@altoventures.com
http://www.altoventures.com
SOURCE: Alto Ventures Ltd.
mailto:koziol@altoventures.com
mailto:info@altoventures.com
http://www.altoventures.com
sumisu
13 years ago
Alto Confirms Large Gold System at Miner Lake, Ontario
-- Surface work and drilling confirm widespread hydrothermal breccia zones with significant gold -- 39.2 m averaging 0.6 g/t gold drilled in hole MIN11-06 -- Anomalous gold intersected in eight of nine holes completed -- Large area ( 2.5 km X 1.5 )
http://www.digitaljournal.com/pr/456669
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2011) - Alto Ventures Ltd. (TSX VENTURE:ATV) is pleased to announce results from the 2011 summer exploration programs on its 100% owned Miner Lake Property located in the Beardmore-Geraldton Gold Belt, Ontario. The programs consisted of extensive surface bedrock sampling, geological mapping, mechanical and hydraulic stripping and diamond drilling. The surface exploration continued to build on work that started in 2010 and identified widespread breccia zones with persistent gold mineralization. The drilling program consisted of nine holes and was the first completed on the property by Alto. Eight of the nine holes intersected significant gold anomalies with hole MIN11-06 intersecting 39.2 m at an average grade of 0.6 g/t gold.
"Results from our 2011 program are very positive," commented Mike Koziol, President and Director of Alto. He adds, "The persistent and widespread distribution of gold in the numerous hydrothermal breccia zones is very encouraging because of the many similarities in style of mineralization to the Cote Lake deposit operated by Trelawney Resources. These early stage exploration programs have confirmed the presence of a large gold-mineralizing system on the property. The challenge now will be to drill into the economic heart of this gold system."
The surface exploration identified widespread hydrothermal breccia zones that contain anomalous gold mineralization within an intermediate intrusive body. The size potential of the mineralized breccia zones is not yet known but the intrusion hosting the gold has surface dimensions of approximately 2.5 km by 1.5 km (see Figure 1) and there are still large areas of the intrusion that have not been prospected and sampled. Gold values up to 4.31 g/t gold were obtained in the breccia zones from the 2011 surface sampling. The breccia zones occur mainly as east striking bands, up to tens of metres in width throughout the intrusion. The intrusion is also sheared and pervasive sulphide mineralization with anomalous gold and copper occurs associated with the sheared areas.
The diamond drilling consisted of 1,732 m in nine holes testing some of the breccia zones that were located during the 2010 and 2011 surface programs. Significant gold anomalies were intersected in most of the drill holes including a wide zone in MIN11-06 which intersected 39.2 m averaging 0.6 g/t gold. Hole MIN11-07 intersected three wide zones of significant gold mineralization (see Table 1). The gold-bearing breccia zones that were tested are open along strike and to depth. There are numerous other targets that require drilling.
The Miner Lake Property had been subject to sporadic exploration work prior to Alto's recent programs and only limited drilling was completed in the past. One historical hole (CM08-04) was drilled 100 m west of Alto hole MIN11-04 and it intersected 36.7 m averaging 0.25 g/t gold further confirming the widespread gold system.
Table 1: Gold Mineralized Intervals From the 2011 Miner Lake Drill Program
----------------------------------------------------------------------
Hole Name From (m) To (m) Width (m)(i) Au (g/t)
----------------------------------------------------------------------
MIN11-01 74.5 76.5 2.0 0.43
85.45 88.45 3.0 0.27
----------------------------------------------------------------------
MIN11-02 130.1 141.75 11.65 0.19
----------------------------------------------------------------------
MIN11-04 42.0 50.09 8.0 0.21
----------------------------------------------------------------------
MIN11-05 132 151.65 19.65 0.31
----------------------------------------------------------------------
MIN11-06 9.8 49 39.2 0.60
includes 13.4 14.9 1.5 4.24
87.5 98.0 10.5 0.38
----------------------------------------------------------------------
MIN11-07 9.0 27.5 18.5 0.38
32.5 47.5 15.0 0.74
58.0 59.0 1.0 1.95
77.0 94.0 17.0 0.26
115.0 116.0 1.0 1.71
123.0 124.0 1.0 2.03
----------------------------------------------------------------------
MIN11-08 77.2 89.0 11.8 0.38
----------------------------------------------------------------------
MIN11-09 38.0 38.9 0.90 1.76
----------------------------------------------------------------------
(i)Based on core angles, true widths are estimated at approximately 70% of the downhole lengths reported. Mineralized zones generally start at 0.1 g/t gold and assay averages may include minimal intervals of waste material. No top cuts of assays were used.
Qualified Persons
Mike Koziol, P. Geo., P.Eng., is the Qualified Person who has reviewed and approved the other technical content in this news release.
About the Miner Lake Property
The Miner Lake Property is located approximately 35 km northeast of the Town of Beardmore, Ontario in the Beardmore-Geraldton Gold Belt. Year-round access to the property can be gained by Trans Canada Highway 11 and by major logging roads. Electric power is available from the main transition lines that parallel Highway 11, approximately 23 km south of the project. Labour, heavy equipment and mining supplies are readily available in nearby communities as well as Thunder Bay which is located approximately 250 road km from the project.
The property is owned 100% by Alto and together with the adjoining Greenoaks property, covers an area of 1,273 ha.
To view Figure 1 associated with this news release, please click the following link: http://media3.marketwire.com/docs/atvfig1.pdf.
About Alto Ventures Ltd.
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold 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 and the Coldstream project in the Shebandowan gold district.
For more details regarding the Company's projects, please visit our website at www.altoventures.com.
ON BEHALF OF THE BOARD,
Richard J. Mazur, P. Geo., CEO
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.
Contacts:
ALTO VENTURES LTD.
Mike Koziol
President and Director
705-522-6372
705-522-8856 (FAX)
koziol@altoventures.com
ALTO VENTURES LTD.
Rick Mazur
CEO & Director
604-689-2599
604-689-3609 (FAX)
info@altoventures.com
www.altoventures.com
sumisu
13 years ago
Alto Ventures and Pacific North West Capital Commence First Phase of Exploration Program on the Destiny Gold Project, Val d'Or, Quebec
http://finance.yahoo.com/news/Alto-Ventures-and-Pacific-ccn-919688046.html?x=0&.v=1
Press Release Source: Alto Ventures Ltd. On Tuesday July 19, 2011, 6:00 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Alto Ventures Ltd. ("ATV") (TSX VENTURE:ATV - News)-
-- Exploration Program planned in two phases including:
1. 2500 MMI(TM) Geochemistry Program
2. 10,000 metre drill program to expand the known Resource in DAC Deposit
-- Mobile Metal Ion (MMI(TM)) soil geochemistry survey has started.
-- MMI(TM) results could generate new drill targets at shallow depths along four kilometre strike of the favourable structure that hosts the DAC Deposit, with an Indicate Resource of approximately 364,000 ounces gold and an Inferred Resource of approximately 247,000 ounces of gold
-- Diamond drilling is slated to commence on expanded targets in Winter 2011
Alto Ventures Ltd. ("ATV") (TSX VENTURE:ATV - News) and Pacific North West Capital Corp. ("PFN") (TSX:PFN - News; OTCBB:PAWEF - News; FRANKFURT:P7J - News; together "the Companies") are pleased to announce that a Mobile Metal Ion (MMI(TM)) soil geochemistry survey has commenced on the Destiny Gold Project located near Val d'Or, Quebec. The MMI(TM) survey is the first phase of a two phase exploration program. The second phase will include 10,000 m of drilling to expand the known Resource in the DAC Deposit.
The DAC Deposit is one of several significant gold occurrences along a four kilometre segment of the Despinassy Shear Zone ("DSZ"). The deposit is covered by a 15 m thick blanket of overburden and the other gold occurrences along the DSZ are also covered by overburden. The Companies believe there is excellent potential to expand the gold resources on the property at shallow depths in the areas covered by overburden and the MMI method is ideally suited for this type of terrain. An orientation survey completed in 2010 to test the method on one of the gold zones (Darla Zone) successfully located gold mineralization below the overburden cover.
The principal objectives of the survey are to extend the known mineralization in the DAC deposit, test the mineralization continuity between DAC, DARLA and Zone 20/21 and to better define shallow targets for a planned diamond drilling program to be completed later this year (Figure 1). The diamond drilling program will be designed to expand the NI43-101 Resource Estimate filed for the DAC Deposit with SEDAR on March 7, 2011 and includes 10.8 million tonnes averaging 1.05 g/t gold (364,000 ounces) as an Indicated Resource plus 8.3 million tonnes averaging 0.92 g/t gold (247,000 ounces) as Inferred Resource at a cut-off grade of 0.5 g/t gold.
The MMI survey consists of approximately 2,500 soil samples of which almost 60% will be along a four kilometre segment of the DSZ on strike from the DAC Deposit. The remaining samples will be collected over other high priority target areas generated from previous work on the property. Sample collection work has been contracted to Geos Sciences Inc of Rouyn-Noranda, Quebec and is currently in progress. Geos Sciences has more than 10 years of experience in MMI sampling and mineral exploration, including soil sampling, geophysical surveys and prospecting.
Mobile Metal Ion (MMI(TM)) Geochemistry is an advanced surface exploration technique for finding mineral deposits and is a cost effective surface exploration tool. This technology measures mobile metal ions in surface soils. These mobile metal ions are released from ore bodies and travel upward toward the surface.
Using sophisticated chemical processes and instrumentation, MMI(TM) is able to measure these ions, in surface soils, to determine accurately where buried mineralization is located. The MMI analyses will be performed by SGS Mineral Services. Results from the MMI analyses are expected in September.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/atv_Fig01.pdf.
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 ("the Report") was prepared in 2011.
The Report was prepared for the DAC Deposit by Wardrop, a Tetra Tech Company ("Wardrop") and filed with SEDAR on March 7, 2011. At a cut-off grade of 0.5 g/t gold and using 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.
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 gold mineralization at the other occurrences also starts near surface, and with additional drilling these other occurrences may add significantly to the contained ounces on the property either as satellite zones to the DAC or as new deposits.
Results reported to date from the Destiny Project are very positive. Previous drilling programs have confirmed anomalous gold values along the DSZ and give rise to the possibility that additional shallow mineralization may be added to the currently defined resource through continued exploration. The Companies believe that there is excellent potential to significantly increase the contained ounces on the property.
A four million dollar program including drilling was recommended in the report by Wardrop. The recommended drilling is intended to target additional gold mineralization at shallow depths to increase the viability of an open pit mining scenario for the project.
The Report can be view on each of the Companies' websites at http://www.altoventures.com and http://www.pfncapital.com.
Mineral Resources are not Mineral Reserves and by definition do not demonstrate economic viability.
Qualified Persons
Mike Koziol, P. Geo., P.Eng. is the Qualified Person who has reviewed and approved the technical content in this news release.
About the Destiny Property
The Destiny Project is under option from Alto Ventures Ltd to Pacific North West Capital. 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. 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.
Pacific North West Capital has fulfilled its obligations for the first two years of the option term as outlined in the agreement.
For more details regarding the Company's projects, please visit our website at http://www.altoventures.com.
About Pacific North West Capital Corp.
Pacific North West Capital Corp. is a mineral exploration company focused on Platinum Group Metals (PGM), precious and base metals. Management's corporate philosophy is to be a project generator, explorer and project operator with the objective of option/joint venturing projects with major and junior mining companies through to production. To that end, Pacific North West Capital's current option/joint ventures agreements are with Anglo Platinum, First Nickel, and Alto Ventures. In addition, Pacific North West Capital is a major shareholder of Fire River Gold Corp. (www.firerivergold.com).
Pacific North West Capital Corp. is a member of the International Metals Group of Companies. www.internationalmetalsgroup.com.
About Alto Ventures Ltd.
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold properties. The Company is active in Quebec in the Abitibi greenstone belt where it has a number of projects including the Alcudia and Destiny gold properties. In Ontario, the Company is exploring in the Beardmore-Geraldton gold belt and the Coldstream project in the Shebandowan gold district. In the Chilcoten Plateau of British Columbia, the Company is exploring the Chilko project near the Newton gold deposit.
ON BEHALF OF THE BOARD,
Richard J. Mazur, P. Geo., CEO
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.
Contact:
Mike Koziol, Alto Ventures Ltd.President and Director, 705-522-6372705-522-8856 (FAX)koziol@altoventures.com; Matt Terriss, Alto Ventures Ltd.Director of Corporate Affairs 604-638-3947604-689-3609 (FAX)terriss@altoventures.comwww.altoventures.com
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