Alto Group Holdings (OTC:ALTO) announced that it has concluded the negotiations to acquire a 50 ton per hour rock crushing plant and entered into negations with Bonanza Goldfields (OTC:BONZ) to develop a new gold mining project. Volume for both companies has skyrocketed today with Bonanza trading nearly 3 million shares and Alto Group topping the 40 million share mark. Each company also garnered some nice percentage gains today.This equipment would allow the processing of hard rock, free milling, gold baring material at a commercial rate of 50 tons per hour and this equipment has now become part of management production plans in the 1st quarter of 2011. The company's gold exploitation efforts have taken a new direction due to management's recent visit to an undisclosed hard rock gold project (see below for project information) showing gold grades that are potentially averaging above 30 grams per ton consistently throughout the deposit. This along with other strong production targets assembled are part of a larger consolidation plan that has prompted the company to obtain this equipment.
Assuming production can be established maintaining an average of 30 grams per ton, running 10 hours per day the daily output would total 500 tons or 15,000 grams of gold per day. With gold at approximately $1,400 per ounce, or 43 dollars per gram, the company could have substantial production of as much as $600,000 per day in gross gold recovery output. This amount translates to potentially over $18,000,000 dollars per month or over $216,000,000 gross per year at maximum output maintaining the production grades mentioned above.
Management feels that if even 10% of this potential is realized the long term price per share of the company is undervalued considering this example represents only one of the many projects that are in the company's pipeline in 2011.
Bonanza Goldfields, which engages in the acquisition, exploration and development of natural resource properties, headquartered in Phoenix, Arizona, announces its has entered into negotiations with Alto Group Holdings (www.altomines.com) to participate in the development of the Zuna Mining Project.
The Zuna Exploration permit granted for 750 Ha for mineral exploration. The Permit is located approximately 10 kilometers south of the town of Huejuquilla el Alto and encompasses the Butte "Salitre". The asphalt road enters the Zuna Exploration permit on the east side of the property, located in Jalisco state. The Zuna Concession lays on top of the same geological phenomenon (Ring Fracture) as Los Tres Machos which is a project also owned by Alto Group Holdings.
Testing was done at Zuna during staking in 2006. Thirty six samples were submitted for fire assay. The average results of all samples yield 2.13 grams per ton of Au and 126 grams per ton of Ag. At the moment, Bonanza Goldfields has estimated a 5,000,000 ton deposit (non NI 43-101 compliant) and with extensive drilling the amount may increase significantly. Over the years, third party geologists and engineers hired to evaluate the area have all expressed great interest in this project and are waiting to see how both companies can explore this giant potential world-class deposit.
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