Altair Ventures Incorporated (“Altair” or “the Company”; TSX-V: AVX) and Consolidated Spire Ventures Ltd (“Spire”; TSX-V: CZS) are pleased to report that results from the 2010 Phase I drilling program within the South Discovery Zone (SDZ) of the Prospect Valley property in southern BC have continued to extend the strike length and width of gold mineralization.
Prospect Valley Project Update
Assays have now been received from the last three holes of the eleven-hole program. Hole PV-10-09 was drilled up-dip from, and on section with, holes PV-10-07 and 08 and further extended the width of the gold mineralization to the southeast with an intersection of 27.95 metres grading 0.41g/t gold. Hole PV- 10-08 (previously reported on May 19, 2010) intersected 68.69 metres grading 0.89g/t gold, including 32.64 metres of 1.32g/t gold that, in turn, included a higher grade section assaying 2.93g/t gold over 7.53 metres. The 68.69 metre interval also included a deeper section of 7.96 metres grading 1.44g/t gold.
Holes PV-10-10 and 11 were drilled 450 and 550 metres, respectively, along strike to the northeast and filled-in and extended the strike length of gold mineralization in that direction. The zone is still open along strike to the northeast. The SDZ is now known to have a strike length of more than 600 metres, although the central 100-150 metres may be offset to the northwest and further work is needed to test this hypothesis. It is locally more than 90 metres in vertical thickness, and more than 200 metres wide in the middle.
“The success of the Phase I drill program is significant, not only because the continuity of gold mineralization should allow us to prepare a preliminary resource estimation, but because the intensity and extent of the mineralization and alteration in the SDZ is indicative of a strong mineralizing system. We have gold anomalies spread over 40 square kilometres at Prospect Valley, some of which are bonanza grade, and we look forward to advancing these targets over the coming summer field season” said Fayyaz Alimohamed, President of Altair.
The Phase I program consisted of 1,127 metres in 11 drill holes and was successful in proving the continuity of gold mineralization intersected in the SDZ in 2006 and 2007. Highlights from holes PV-10- 09 to 11 are listed below and all results from the Phase I program and a map showing drill collar locations can be found on the Company website at http://www.altairventuresinc.com/projects/prospectvalley/workprogram.aspx.
The SDZ occurs in the hanging wall of (above) a moderately dipping fault, with the gold grade typically increasing downward toward the fault. Lower grade rocks near surface are generally oxidized and hematized, while higher gold grades appear to be associated with increased silicification and disseminated pyrite. Rocks on the footwall side of (below) the fault are chloritized and barren of gold mineralization.
2010 Phase 1 Drilling Highlights:
|Hole Number||From (m)||To (m)||Length (m)||Au (g/t)|
Internal higher grade portions can be up to 20 metres thick, often close to the aforementioned fault. On some sections, the gold grade appears to be increasing in a down-dip direction (i.e. to the northwest, down the fault) and this theory will be tested in future drilling. This is particularly significant in that the zone is entirely open in this direction.
Drilling to date has only tested the SDZ to an average vertical depth of 60 metres. The most recently drilled portions of the SDZ have now been defined at approximately 50 metre centres, which may be sufficient for the estimation of a preliminary resource.
The SDZ is part of a geochemical and geophysical anomaly extending nearly two kilometres in total strike length and up to 400 metres wide. While it has the potential to host a significant low grade, bulk tonnage epithermal gold system, many other untested targets exist on the property, including bonanza grade gold-quartz veins. A summer field program is currently being designed to follow up on these other areas in order to bring them to the drill stage as quickly as possible.
The Prospect Valley Gold Project is only 30 kilometres south of the world class Highland Valley Copper Mine, and sits within a complex tectonic zone that are interpreted to have provided channel ways for the introduction of widespread gold mineralization. Altair has an option to earn up to a 90% interest in the 107.9 sq km Prospect Valley Property, situated within the Spences Bridge Gold Belt, approximately 3 hours driving time from Vancouver and one hour west of Merritt, BC.
The Qualified Person for the Prospect Valley Project is Mr. Warner Gruenwald, P.Geo. and VP Exploration for Altair Ventures Inc. Mr. Gruenwald has reviewed and approved of this news release.
Altair will be at the World Resource Investment Conference at the Vancouver Convention Center West on June 6-7, 2010. Altair will be at booth 509.
Unit Private Placement
Altair also wishes to announce that it will undertake a non-brokered private placement of up to 5,000,000 Units at a price of $0.10 per Unit for gross proceeds of up to $500,000 (the “Offering”). Each unit will consist of one common share in the Company and one half of a non-transferable share purchase warrant.
Each whole share purchase warrant will entitle the holder to acquire one additional common share of the Company for C$0.15 per share, expiring one year after closing. Finder’s fees may be payable on all, or part, of the financing.
The net proceeds of the Offering will be used by Altair to fund expenditures on the Prospect Valley Gold Property, located in southern British Columbia under Altair’s option agreement with Consolidated Spire Ventures Ltd. (TSX-V: CZS) and for general working capital purposes.
The Offering is subject to acceptance by the TSX Venture Exchange.
For further information please contact Fayyaz Alimohamed at (604) 641-1305, fax at (604) 688-8309 or e-mail [email protected]
ON BEHALF OF THE BOARD
Fayyaz Alimohamed, President & CEO
This news release contains certain “forward-looking statements”, within the meaning of Canadian securities legislation, relating to a proposed private placement financing and the proposed use of proceeds, future exploration plans, and plans to prepare a preliminary resource estimate. Although Altair believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of Altair’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Altair disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable law and stock exchange policies. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: Altair’s inability to secure subscriptions from subscribers to complete the proposed Offering in whole or in part, a management decision to change the use of proceeds based on changing circumstances, Altair might encounter problems such as the significant depreciation of metals prices, accidents and other risks associated with mining exploration, the risk that Altair will encounter unanticipated geological factors, the possibility that Altair may not be able to secure permitting and other governmental clearances necessary to carry out Altair’s exploration plans, and the other risk factors discussed in greater detail in Altair’s various filings on SEDAR (www.sedar.com) with Canadian securities regulators.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.