Alto Group Holdings, Inc. (ALTO.OB) Goes for the Gold

 @ibtimes
on January 21 2010 9:41 AM

Alto Group Holdings has managed to acquire 70% of the rights to the Nkwanta mining concession in the Ashanti Belt of Ghana, under an agreement with Castle Peak Mining. Castle Peak owns the mineral rights to the Nkwanta concession, and Alto is conducting exploration and mineral assays.

Ghana is located on the Gulf of Guinea, on the west coast of Africa, and the Ashanti Belt, in the southwest corner of the country, has a long history of successful gold production. In fact, it’s one of the most productive gold mining regions in the world. A number of mining companies already have major operations in the area, and initial assay results from one gold vein in the Nkwanta concession are very favorable. Several of the initial assays point to a gold ratio of 1 ounce per ton up to over 47 ounces per ton, and four additional gold veins have already been identified. The company also has an option to gain a 50% interest in an adjoining mining concession, which Alto is expected to exercise within a few months.

Alto plans to continue exploration of the mining concessions over the next one to two years, and is expected to identify additional gold deposits due to the very strong gold production history of the Ashanti Belt. Although it will take several million dollars over the next three years to support the necessary exploration, a conservative estimate of the take runs to something over $1/2 billion, which will significantly affect the share price for Alto. In addition, if gold prices increase, which many feel is a certainty over the next year or two, these estimates will be pushed upward.

It is likely that Alto will end up selling its mining rights to a major mining company in a few years, once deposits are fully assessed.

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