Noranda Exploration discovered Alto Ventures‘ (ATV-V) East Coldstream 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.
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 C-10-22 in the Sanders Zone intersected a 27.46-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 per tonne over 16.85 metres within a 34.8 metre wide zone averaging 1.84 grams gold per tonne in hole C-10-32 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 C-10-26 in the Main Zone, and 2.44 grams gold over 5.25 metres within a 16.2 metre-wide zone averaging 1.02 grams gold in hole C-10-29, also in the Main zone. Holes C-10-28 in the Main Zone returned 2.02 grams gold over 8.45 metres, while C-10-27, also in the Main Zone, cut 0.55 gram gold over 9.1 metres in the Main Zone.
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 0.52 million 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 5,394 hectares of staked and patented mining claims along the Trans Canada Highway, an area of good infrastructure with a major power line. The CN Rail line also passes just north of the property.
In May 2009, the junior exploration and development company signed a purchase 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.
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