VANCOUVER, May 14, 2012 /CNW/ - Next Gen Metals Inc. ("Next Gen") TSX.V: N and Alto Ventures Ltd. ("Alto") TSX.V: ATV (together "the Companies") are pleased to announce the assay results from the remaining holes of the 2012 drill program on the Destiny Gold project located near Val-d'Or, Quebec.
Drill holes DES12-150 to DES12-155 are six of the 12 drill holes that tested for the presence of gold mineralization at shallower depth along strike between the DAC Deposit to the west and the Darla Zone to the east (Figure 1), thereby expanding the mineralized zone down-dip and along the strike. The results from these six drill holes together with the results from the six holes announced previously (Please see April 10, 2012 Press Release) confirm the presence of higher-grade gold values between the DAC Deposit and the Darla Zone (Figure 1). These higher grade values occur within broad lower-grade mineralization envelopes with strong alteration and shearing.
Drill hole DES12-154 was drilled on Section 317960E and intersected 22.7 g/t gold over 1.05 m from 328.2 m to 329.25 m. Higher-grade intercepts in DES12-153 include 6.6 g/t gold over 1.0 m from 116.25 m to 117.25 m on Section 317860E, located 100 m west of DES12-154. Drill hole DES12-155 intersected 3.39 g/t gold over 1.0 m from 37.65 m to 38.65 m. This hole is located on Section 318460E and lies 200 m east of hole DES12-147 which intersected 78 g/t gold over 1.0 m.
In addition to the results highlighted above, each of the holes intersected sheared and altered rocks with anomalous gold values in several zones (Table1). The holes were drilled at nominal 100 m spacing to test the approximately one kilometre distance between the DAC Deposit and the Darla Zone. Each of the holes was drilled on an azimuth of 180°.
The results from the 12 widely spaced holes are very positive and confirm the presence of gold mineralization between the DAC Deposit and the Darla Zone and indicate that some of the gold zones could be linked for a total mineralization length of 2 km.
The 2012 drilling has established that there is significant gold mineralization associated with the Despinassy Shear Zone between the DAC Deposit and the Darla Zone. An in-fill program of closer spaced holes will now be required to determine if the gold zones delineated with the current drilling have potential to add significant tonnes and ounces to the DAC Deposit.
In total, 3,472 m were drilled in 15 holes during the 2011-2012 program. Twelve of the fifteen holes focused on testing the under-explored area between the DAC Deposit and the Darla Zone at shallow depths (Figure 1). Three holes (DES11-141 to 143) were completed to test the Despinassy Shear Zone to the west of the DAC Deposit. The holes were drilled on Sections 316025E, 316125E and 316200E, between 700 m and 900 m to the west of the DAC Deposit. Each of the three holes intersected sheared and altered rocks and hole DES11-141 intersected anomalous gold values including 0.865 g/t gold over 1.4 m.
Table-1- Significant Gold Assays from Holes DES12-150 to 155
|Hole Number||From (m)||To (m)||Width (m) *downhole||Au (g/t)|
*Based on core angles and previous drilling on the property, true widths are estimated at approximately 80 to 90% of the down-hole 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.
About the 2012 drill program:
The 2012 drill program was designed to test the under-explored area between the DAC Deposit and the Darla Zone at shallow depths (Figure 1) and consisted of 3,472 m in eighteen holes. The objective of the drilling program is to increase the contained ounces on the Destiny Property at shallow depths. This program tested the one kilometre gap in drilling between the DAC Deposit and the Darla Zone at shallow depths to determine if the gold mineralization continues between these two areas. If results from these widely spaced holes are positive, an in-fill program will be proposed to generate sufficient data to prepare an updated NI43-101 compliant Resource Estimate Report incorporating results from the Darla Zone as well as the area between the Darla Zone and the DAC Deposit.
The DAC Deposit is one of several significant gold zones along a four kilometre segment of the Despinassy Shear Zone.
As of January 2011, the DAC Deposit has an Indicated Resources of 10.8 Mt grading 1.05 g/t Au (at 0.5 g/t Au cutoff) for 364,000 ounces of gold and Inferred Resources of 8.3 Mt grading 0.92 g/t Au (at 0.5 g/t Au cutoff) for 247,000 ounces of gold. The DAC Deposit and the Darla Zone are two of several significant gold occurrences along a four kilometre segment of the Despinassy Shear Zone.
About the Destiny Project:
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.
On September 26, 2011, Pacific North West Capital Corp. (PFN) assigned its interest in the initial Option Agreement with the property owner, Alto Ventures Ltd., to Next Gen Metals Inc. Under the terms of the Option Agreement, Next Gen is responsible for all remaining cash payments and exploration expenditures due to be paid or incurred, as the case may be under the initial option with Alto Ventures Ltd.
PFN has fulfilled its obligations for the first two years of the Option Agreement and will continue to be responsible for issuances of common shares to Alto.
Figure 1- Location map of 2012 diamond drill holes DES12-144 to 155 in the under-explored area between DAC Deposit and Darla Zone
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 was prepared in 2011.
The Mineral Resource Estimate Report was prepared for the DAC Deposit by Wardrop, a Tetra Tech Company (Wardrop) and filed on Sedar on March 7, 2011. Using a cut-off grade of 0.5 g/t gold and 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. For details regarding the resource estimate methods and calculation parameters used in preparation of the Report please see the news releases issued by Alto and PFN on March 7, 2011. The Report can be view on each of the Company's websites at www.nextgenmetalsinc.com and www.altoventures.com .
Mineral Resources are not Mineral Reserves and by definition do not demonstrate economic viability.
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 Darla Zone, which lies one km east of the DAC Zone, was discovered in 2006. At this location, drilling intersected 19.5 g/t gold across 2.1 m and 20.6 g/t over 0.8 m . The occurrence of high grade gold mineralization in the Darla, DAC and 20 and 21 zones clearly indicates that the mineralizing system occurs across a significant portion of the property. The gold mineralization at these occurrences starts near surface, and with additional drilling these targets could add significant contained ounces to the already defined resources at the DAC Deposit.
Qualified Person Statement
This news release has been reviewed and approved for technical content by Mike Koziol, P. Geo, a qualified person under the provisions of national instrument 43-101.
About Alto Ventures Ltd
Alto Ventures Ltd. is an exploration and development company with a portfolio of highly prospective Canadian gold and base metals 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. 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.
About Next Gen Metals Inc
Next Gen is a mineral exploration company whose current focus is on silver, gold and base metals projects in North America. The Company has acquired a 60% option interest (TSX.V: N) on the Destiny Gold Project (Indicated Resource of 364,000 ounces plus an Inferred Resource of 247,000 ounces of gold) In addition, Next Gen is presently advancing the Silver Chalice Project, located in Alaska, and the Fate Gold Project adjacent to the Destiny Gold Project, both of which are located in the Abitibi Greenstone Belt of Northwest Québec, one of the most famous gold and base metals regions in the world. Next Gen continues to aggressively negotiate for additional advanced-stage silver, gold and base metal projects on an international scale.
Next Gen http://www.nextgenmetalsinc.com is the newest company to join the International Metals Group ("IMG") (www.internationalmetalsgroup.com). The Board of Directors is comprised in part with directors from other companies within the IMG group who, along with management, have a combined 150 years or more of experience in all aspects of managing public companies related to the resource industry.
On behalf of the Board of Directors
Chairman and 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. Note: this release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as "continue", "efforts", "expect", "believe", "anticipate", "confident", "intend", "strategy", "plan", "will", "estimate", "project", "goal", "target", "prospects", "optimistic" or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company's ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.
For further information:
Ali H.Alizadeh, Vice President Exploration
Next Gen Metals Inc.