Alto Ventures Ltd. Enters into Option Agreement on the Destiny Gold Property, Quebec
Vancouver, May 15, 2018 - Alto Ventures Ltd. (TSXV: ATV) is pleased to announce that it has executed an Earn-in Agreement (the "Agreement") with Hinterland Metals Inc. (TSXV: HMI) ("Hinterland"), whereby Hinterland may earn an interest in Alto's 101-claim (4,010-hectare) Destiny property (the "Property") located approximately 75 kilometres ("km") north of Val-d'Or in the Abitibi Region of Quebec. An all-season paved road provides direct access to the Property. Excellent mining infrastructure and support facilities are locally available. Richard Mazur, CEO commented, "We are pleased that a Quebec-based exploration company recognizes the multi-million ounce gold potential of this well located and underexplored region of the Abitibi. With this transaction, Hinterland has an opportunity to advance our Destiny project through to production."
The most important feature of the Property is the "DAC" deposit that is made up of higher grade gold-bearing quartz veins occurring within five parallel, altered shear zones that also carry gold at lower grades. In January 2011, a "Resource Estimate" report (1) calculated the gold content of the five parallel, altered shear zones in compliance with NI43-101 standards. The estimate used data from 68 of the total 167 holes drilled on the Property to date. At a cut-off grade of 1.0 grams per tonne gold ("gpt Au") from approximately 15 metres below surface to a depth of 400 metres, the DAC deposit was estimated to include:
- 3,858,800 tonnes at an average grade of 1.71 gpt Au Indicated (212,310 contained ounces gold); and
- 2,521,400 tonnes at an average grade of 1.53 gpt Au Inferred (124,390 contained ounces gold).
Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. The Resource Estimate used a number of variable parameters including stripping ratio, operating costs, long term gold price, currency conversion, gold recovery etc. The Resource Estimate report is available for viewing on Alto's SEDAR profile.
The DAC Deposit is one of several significant gold occurrences on the Property along the Despinassy Shear Zone: a gold bearing structure that has been traced by drilling and geophysics for 6.0 km of strike length on the Property. Some of the better defined zones include the "Darla", located approximately 1.0 km east of the DAC Deposit, and the "20" and "21" zones, located 3.5 km east of DAC Deposit. Gold mineralization was also found in a drill hole located 1.0 km west of the DAC deposit but has not been followed up.
Pursuant to the Agreement, Hinterland may earn a 50% interest in the Property by paying $150,000 cash ($10,000 on closing), issuing up to 4,000,000 shares (100,000 on closing) and completing $8,000,000 of exploration expenditures in stages over a three-year period (the "First Option"). Upon completion and exercise of the First Option, Hinterland may elect to earn an additional 25% interest (the "Additional 25% Interest") by paying $200,000 cash, issuing up to 4,000,000 shares and completing $8,000,000 of exploration expenditures in stages over a two-year period (the "Second Option").
Upon earning the Additional 25% Interest and exercising the Second Option, Hinterland and Alto will form a joint venture with initial respective participating interests to be 75% and 25%. If Hinterland elects not to earn the Additional 25% Interest or if Hinterland fails to complete the Second Option, then Hinterland and Alto will form a joint venture with initial respective participating interests to be 50% and 50%. In either case, the joint venture will be funded by each partner according to their respective interests subject to the terms and conditions of a joint venture agreement.
The transaction is subject to completion of due diligence, regulatory approvals, and a private placement financing of at least $750,000 by Hinterland on or before June 30, 2018.
Hinterland intends to start the first phase of exploration work immediately upon completion of the financing. To begin with, detailed geological modelling will be done on the DAC deposit and other gold-bearing zones on the Property. This will be followed by an initial 5,000 metre drill program. Hinterland is well-positioned to manage the Destiny exploration efficiently with an exploration office, personnel, vehicles and equipment located in Val-d'Or.
Alto's President, Mike Koziol, P. Geo. is a qualified person under the provisions of National Instrument 43-101 and approves the technical data and conclusions in this news release. The Resource Estimate referred to above is referenced as follows:
(1)McCracken, T., 2011: NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property, Quebec
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 the Abitibi greenstone belt in Quebec on the Destiny gold property and is exploring in the Beardmore-Geraldton gold belt in Ontario. In Manitoba, the Company is focused on the gold and base metals potential of the highly prospective but relatively under-explored Oxford Lake property. 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.
For further information contact:
Mike Koziol,
President and Director
Alto Ventures Ltd.
Unit 7 – 1351C Kelly Lake Rd
Sudbury, ON., P3E 5P5
Tel: 705-522-6372
Email: koziol@altoventures.com
Rick Mazur,
CEO and Director
Alto Ventures Ltd.
Suite 615-800 W. Pender Street
Vancouver, BC, V6C 2V6
Tel: 604-689-2599
Email: mazur@altoventures.com
