Aloro Mining has a "pay attention to" gold target in Sonora Mexico's, Mulatos District. Aloro's strategic Los Venados property sits right in-between 2 producing open pit gold mines; La India owned by Agnico Eagle and Mulatos owned by Alamos Gold (see map).
Aloro controls 100% interest in the 2 mining concessions that covers 3199 hectares in the Mulatos District. The geology in the district is well understood. There are 10 known deposits within 10km of Aloro that are receiving extensive development/pre-production work. Known mineralization is gold-dominant, high sulphidation type, to which Aloro enjoys several occurrences of on their Los Venados property.
Aloro’s share structure is tightly held with 46M shares outstanding. Management owns close to 50%, Agnico Eagle owns 8.7%, and Almadex Minerals around 5%. MC is $6M CAD.
When Aloro secured the property, they were approached by several companies looking to do a JV - but management said no. That includes neighbouring Agnico Eagle. Agnico Eagle tried to do a JV once they reviewed Aloro's new IP survey and Field Examination Report and when they were also told no - Agnico funded Aloro's maiden drill program by investing in their PP for 8.7%, then offered Technical Advice and subsequently signed an Investor Rights Agreement to 9.9%. Needless to say, Agnico likes what they see.
In addition to their strategic land position, as well as Agnico's recent PP, I like Aloro isn't chasing gold veins, deep underground. The target is well understood, disseminated gold, near surface, controlled by a felsic dome/silica breccia complex. There is positive soil samples and an IP anomaly coinciding with an intensely altered silicified breccia. Aloro is looking for the silicified breccia, and proximal alteration of the silicified breccia to be mineralized. This is a high priority gold target that Agnico has it's eye on.
In drilling this high priority gold target Aloro is looking for a northwestern extension of mineralization as similarly found in it's other neighbour, Alamos Gold's Mulatos mine called, the Escondida deposit. Alamos Gold's best historic drill results were on the northwestern Escondida deposit extension. Best drill results;
05EI034 — 28.97 m of 70.96 g/t Au
05EI032 — 12.20 m of 36.92 g/t Au
05EI033 — 19.81 m of 11.86 g/t Au
It should be noted - Ken Balleweg was VP of Exploration for Alamos Gold at the time of those high grade results where he supervised and directed the successful drill program and many others. Ken spent 16 years developing several Mulatos deposits for Alamos and Placer Dome before Alamos took Mulatos over.
After 16 years Ken knows the geology very well - and is why Aloro wisely hired Ken to complete their Field Examination Report, the one Agnico liked so much, along with the IP results, they wanted to do a JV but settled for investing in their PP and funding Aloro's maiden drill program. Ken was also wisely brought on to oversee Aloro's maiden drill program.
In their maiden drilling, Aloro is looking for a similar high grade Mulatos Escondida deposit extension that possibly exists across the major normal Mulatos faults - offsetting the northwestern portion of the Alamos property and onto Aloro's southeastern portion of property. And there are several reasons for optimism the high grade Escondida deposit extends onto Aloro's strategic property.
Aloro's high grade gold target has 4 coincident factors supporting the extension;
- positive geochemistry results, soil samples over 1 g/t Au
- felsic dome complex; with multi-stage, intensely altered silicified breccia, on Mulatos fault
- similar economic mineralization with both neighbouring mines, and breccia contact relationships consistent with internal morphologies of higher grade economic mineralization of Escondida
- IP anomaly indicating a large intrusive body
Given the many positive coincident target factors for a possible deposit extension, and that 16 year district expert Ken Balleweg was the geologist that Aloro hired to complete their Field Examination Report, along with the fact Agnico demonstrated actionable interest by, wanting to do a JV, and after being told no, funded Aloro's maiden drill program by investing in their PP, then subsequently offering Technical Advice and signing an Investor Rights Agreement; I knew I wanted to own Aloro stock. The next question became, do I want to get in before assays, or wait?
Keeping in mind if Aloro discovers either high grade or lower grade bulk tonnage, both Alamos and Agnico will be looking to extend mine life and/or improve margins. If Aloro discovers lower grade both Alamos and Agnico will look to extend mine life with more bulk tonnage and if they discover higher grade they will look to improve margins by bolting onto current operations.
FD: I am long, already in, ahead of maiden assays. If Aloro makes a discovery - I will hold until, what I see as an eventual takeout by either Agnico Eagle or Alamos Gold. A good place to be.
I have no affiliation with Aloro Mining Corp management. I did not receive any compensation for writing this article. I bought my shares in the open market.
Aloro Maps and Models;
Field Examination Report (by Ken Balleweg) & IP Summary;
Historical Drill Results - For Alamos Gold Escondida Deposit;
Follow Up Historical Drill Results - For Alamos Gold Escondida Deposit;
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