The Toronto Venture Exchange is going through a rough slide with the resource-heavy exchange dropping from a high of 1,696.14 on the final trading day of February to current levels around the 1,400 mark. While some investors trade under the axiom “Sell in May and walk away,” others will see the depressed prices and weakness of other investors as an opportune time to snatch-up low-priced plays that aren’t deserving of current low-dollar valuation.
A junior that is certainly worthy of due diligence is British Columbia-based Alto Ventures Ltd. (TSX-V: ATV). Alto has a portfolio of 13 highly prospective Canadian gold properties spanning Manitoba, Ontario and Quebec. Initial testing and historical data across all of the projects shows significant gold and other minerals appear to be hosted in the projects. In the last six months, the company has posted significant findings in Ontario at its Miner Lake and Iris Lake properties; its Destiny Gold Project in Val d’Or, Quebec; and its Oxford Lake project in Manitoba. A cut at Iris Lake was particularly impressive, showing 254.00 g/t gold across 0.50 meters.
The Destiny Gold property is undergoing extensive exploration through an agreement with Next Gen Metals Inc. (TSX-V: N) in which Next Gen is earning a 60% interest in the project. Located in one of the most prolific gold belts in Canada, the Destiny property had a NI 43-101 compliant Resource Estimate completed for its DAC Deposit in 2011 which has an Indicated Resource of approximately 10.8 million tonnes averaging 1.05 g/t gold (364,000 ounces) plus an Inferred Resource of approximately 8.3 million tonnes averaging 0.92 g/t gold (247,000 ounces). Current drilling is proving-up the property’s reserves with 78.7 g/t gold over 1.0 meter reported in April from a drill hole east of the DAC Deposit. Importantly, the 3,500 meter drill program is indicating that mineralization from the Darla Zone could be linked to the DAC deposit and which would increase the length of the strike to 2 kilometers.
With Next Gen footing the bill for the exploration at Destiny, Alto has cash to spend on other properties to continue to build value. In February, Alto sold its 40 percent interest in its Coldstream Gold Project in Ontario to Foundation Resources Inc. (TSX-V: FDN) for $2.5 million. Alto has collected $350,000 in cash with another $950,000 in cash due by August. The remaining balance has been paid through the issuance of 10 million common shares of Foundation to Alto. Coldstream has several large gold targets, including the Osmani Gold Deposit, which has a NI 43-101 resource estimate of 763,276 ounces gold (30.5 million tonnes at 0.78 g/t gold) in the Inferred and 96,400 ounces gold (3.5 million tonnes at 0.85 g/t gold) in the Indicated categories.
Between the cash from Coldstream and more than $600,000.00 being generated from a flow-through financing, the company can continue its efforts at Oxford Lake in Manitoba. A 5,000 meter drill program is building upon the iron-formation hosted Rusty Gold Zone with historical resources of 800,000 tonnes averaging 6.0 g/t gold.
With the corporate coffers lined and resources in the ground, Alto Ventures has also consolidated its shares to only have 22.4 million outstanding. At a share price of only 9.5 cents, the company is only carrying a market cap of a miniscule $2.13 million. Considering the long list of assets, those that exercise the aforementioned springtime credo may be missing the boat as Alto’s exploration efforts move forward.
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