Alto Group Holdings (ALTO.OB) Acquires Mineral Rights to Historic Mine

By @ibtimes on

Gold is still hot. Perhaps not as hot is it was a couple months ago, but in the overall perspective of investments, analysts are still calling this a pullback and the trend should continue northward in the future. The good thing for mining companies is that operational expenses are not climbing near as fast as gold, leading to greater profits on each ounce pulled from the earth.

New York, NY-based Alto Group Holdings, Inc. is an innovative mining and commodities trade company that had a huge spike in price per share in December 2010, but has since slid back near “pre-spike” levels. However, yesterday, the stock spiked again after the announcement of a new acquisition.

Alto announced that it has completed the acquisition of mineral rights in the Horse Shoe Bar gold mine near Forest Hill, California. With a natural look of a horse shoe, the mine is over a mile and half around and a few hundred yards wide. The super-rich placer came to its final resting place because of its back eddies and deep crisscrossing cracks in the bed rock, as it acts as a natural massive “Gold Trap.”

A large, 30′ x 60′ feet tunnel was driven into the open end, river side of the “Horse shoe” bar to try and “de-water” it back in the late 1800s, but was unsuccessful, although the gold that was found so abundantly and in such large nuggets drove miners to continue to try and stake their claims. Chinese prospectors took their crack at it in the late 1800’s as well, but more cautiously, and only the head of the mine was worked to extract $12 million worth of gold, based on $17 per ounce gold prices; representing over 700,000 ounces of gold. Alto contends that this was just the tip of the iceberg as most of the time gold does not accumulate at the head of the mine.

Miners were emphatic about the Horse Shoe bar as some of the largest nuggets ever recorded in California have come from this location. Many nuggets were in the 40 to 60 ounce size with some examples reaching the size of a loaf of bread; or several hundred ounces. Gold nuggets of this gigantic size bring premium prices realizing 5 to 10 times spot bullion value.

Even though this is a Gold extraction project, it is also being viewed as an “Environmental reclamation project” in that Alto will be restoring natural native habitat and cleaning up old mine tailings where there was gravel extracted for a dam project up river in the early 1950s. There are a number of exemptions regarding remedial restoration and clean ups for old mine tailings, mine dumps, mine pits and flood damage that will help expedite permitting.

From historical records, documents and recent testing, Alto estimates conservatively that there is approximately $25 to 35 million in gold (at $800.00 per ounce) within the Horse Shoe Bar and will be looking to use modern technologies to succeed in extracting the gold where others have failed over a century ago.

More information on Alto Group Holdings, including information on the Horse Shoe Mine, can be found on the Company’s website at www.altomines.com

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