Mineralization on Osisko Mining’s Lynx Corridor appears to be dipping to the southeast towards the property owned by Alto Ventures (CVE:ATV)
SmallCapPower | April 18, 2017: On April 18, 2017, Alto Ventures Ltd. (TSXV: ATV) provided an update on recent developments on its Windfall East (formerly Alcudia) and Destiny projects in the Abitibi greenstone belt in Quebec.
Osisko Mining Inc. (TSX: OSK) recently reported new high grade intersections on the northeastern extension of the Main Zone of the Windfall Lake Gold Deposit at the Lynx Zone Discovery, which included grades of 63.8 g/t gold over 4.4 metres, 34.1 g/t over 4.0 metres, and 19.4 g/t over 7.9 metres from expansion drilling to the northeast of the main Windfall deposit. Alto’s 299 hectare Windfall East Property is strategically located adjacent to this new discovery.
Current and proposed drilling reported by Osisko is following a northeast trending magnetic low along the Lynx Corridor with drill collars immediately adjacent to Alto’s western and northern property boundary.
Previous work by Alto on the property included a magnetometer survey, an induced polarization (“IP”) survey, and a 1,688 metre drill program in eleven short holes in 2011. At that time, Alto was targeting the magnetic highs and IP anomalies in the southern half of the property with negative results. Two magnetic low trends occur parallel to the Lynx Corridor on the northern half of Alto’s Windfall East property. In addition, mineralization on the Lynx Corridor appears to be dipping to the southeast towards Alto’s Windfall East property. Alto is evaluating its next steps in exploration of these newly identified drill targets.
Osisko reported, on April 12, 2017, that it has identified a site for the potential construction of a mill complex to process Windfall Lake mineralized material at a location eleven kilometres southeast of Lebel-sur-Quevillon. The Destiny gold project is located 70 kilometres southwest of this proposed new millsite location, which has important implications for its future development. The deposit occurs along a major crustal deformation corridor, the Chicobi Fault, which is under-explored and is only now being recognized for its gold potential.
The Destiny Gold project covers a four kilometer trend of gold mineralization that includes the DAC deposit, which has a 43-101 resource estimate, the Gap Zone, the Darla Zone and Zone 20 and 21. The DAC Deposit is made up of high grade gold-bearing quartz veins occurring within five parallel altered shear zones within a 200m wide deformation corridor. In addition to high grade gold in the quartz veins, the altered zones also carry gold at lower grades than the quartz veins but are significantly wider and contribute to the global gold resources of the DAC Deposit. The shear zones and high grade quartz veins were drilled from near surface to depths exceeding 600 m and remain open at depth.
The DAC Deposit hosts Indicated Mineral Resources of 10.8 million tonnes at an average grade of 1.05 g/t gold using 0.5 g/t gold cut-off grade. In addition, at the same gold cut-off grade, the Inferred Mineral Resources total approximately 8.3 million tonnes at an average grade of 0.92 g/t gold. The estimated contained ounces in the Indicated category are 364,000 plus 247,000 ounces in the Inferred classification. The gold mineralization is open to depth and along strike. The Resource Estimates Report was prepared by Todd McCracken, P.Geo, who is a Qualified Person (“QP”) for purposes of NI43-101 Report. He is responsible for preparing the Report and the Resource Estimate disclosed in the Report. Mr. McCracken was an employee of Tetra Tech (formerly Wardrop) at the time he prepared the report and independent from the Company as described in section 1.4 of NI 43-101.
The Company has commissioned the preparation of a new Resource Estimate Report to consider the underground potential of the high grade gold veins within the DAC Deposit on the Destiny Project. In 2011, a Resource Estimate Report was prepared to estimate the gold content and grades of the five parallel altered shear zones. Further drilling since the preparation of the report will be included in the new, higher grade underground resource estimate.
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