Historical resource estimates for the Coldstream and Oxford Lake projects combined with the recent study on the DAC deposit at Despinassy indicate that all three projects contain extensive gold mineralization.
Drilling Plans
Alto proposes that a 5,000 metre (m) drill program be conducted on the Despinassy project including 2,600 m on the DAC deposit to bring it into a defined resource category. Gold mineralization is widespread over the 6 kilometre (km) strike length of the Despinassy Shear Zone suggesting excellent potential for additional gold deposits. A further 2,400 m will be drilled approximately 1 km east of the DAC in Area 2, where previous drilling by Cameco Corporation intersected up to 34 grams per tonne (g/t) gold in a similar geological setting. In addition, the Company plans to embark upon a 1,000 m drill program on the East Coldstream gold deposit to test extensions of the gold mineralization and evaluate the bulk-mineable, open-pit potential.
Review of Advanced Gold Projects
The 100% owned East Coldstream gold deposit, in the Shebandowan greenstone belt, is located 100 km west of Thunder Bay, Ontario. This significant zone of gold mineralization was discovered in 1988 by Noranda Exploration and was the focus of 6,318 m of drilling from 1988 to 1991. In 1995, an evaluation by Newhawk Gold Mines Ltd. estimated a resource of 7.6 million tonnes grading 2.0 g/t gold, containing approximately 485,000 ounces of gold.* Excellent potential exists to extend the gold deposit along strike and at depth.
The Rusty Zone gold deposit is located within Alto's 100%-owned Oxford Lake property in northeastern Manitoba. A report by Noranda Exploration in the late 1980's concluded that the Rusty Zone gold deposit estimated a resource of 800,000 tonnes grading 6 g/t gold, containing approximately 154,000 ounces of gold.*
*Neither of the historical resource estimates for East Coldstream nor the Rusty Zone have been calculated or classified under the specifications outlined in National Instrument 43-101. The Company has not done the work necessary to verify the classification of these resources, nor should these estimates be relied upon. These estimates are considered to be relevant by the Company.
The DAC deposit on the Despinassy property is located 70 km north of Val d'Or within the Abitibi Greenstone belt of northern Quebec. As reported in Alto's news release dated November 28, 2005, a study by W.A. Hubachek Consultants Ltd. (HCG) concludes that a potential gold deposit ranging from 303,000 tonnes to 670,000 tonnes with grades from 6.8 to 7.8 g/t of gold has been outlined. These ranges equate to approximately 76,000 to 146,000 ounces of gold. The study only focused on drilling conducted along a 300 m strike length and to a depth of 360 m. The deposit remains open at depth and along strike for 6 km on the Despinassy Shear Zone. The classification of resources was not a mandate of the HCG study. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource on the property. It is uncertain if further exploration will result in the discovery of a mineral resource on the property.
Mr. Richard Mazur, P. Geo., President and CEO stated, "Alto's near-term exploration efforts will focus on the advancement of the Despinassy and East Coldstream gold projects. The Company believes that its high-quality gold exploration projects have the potential for well over 700,000 ounces of gold."
Quality Assurance/Quality Control
Mike Koziol, P.Geo. (Ontario), Alto's Vice President of Exploration is the Qualified Person on Alto's projects.
About Alto Ventures Ltd.
Alto Ventures Ltd. is a gold exploration and development company with a portfolio of nine properties in the Canadian Shield. The Company is focused on projects located within the Abitibi Greenstone Belt in Ontario and Quebec as well as in historic gold producing districts. Alto's strength is firmly founded upon the broad capabilities of its management team, which is highly accomplished in the realms of property acquisition, project financing, exploration and mine development. For further information visit our website at www.altoventures.com
ON BEHALF OF THE BOARD
Richard Mazur, P.Geo.
President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information contact:
Doug Fosbrooke
Investor Relations
604-681-2409
info@altoventures.com
