American Consolidated Minerals Corporation
TSX VENTURE : AJC

American Consolidated Minerals Corporation

October 07, 2010 09:00 ET

American Consolidated Minerals Corp.: Deep Drilling Completed at Toiyabe Project, Nevada, New Drilling Targets Defined

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2010) - American Consolidated Minerals Corp. (TSX VENTURE:AJC) (the "Company") has received assay results for deep core drilling at its Toiyabe Project, located 12 miles south of the Pipeline Mine in northeastern Nevada.

The program was designed to target favorable host rocks in the hanging wall and footwall of the "805 Fault", a previously identified feeder structure. Drill hole T-1002BC intersected 60 feet (48.0 ft. or 14.6 m true width) averaging 0.059 oz/ton gold (2.03 g/t) from 973 to 1,033 feet (297 to 315 m). Included within this interval is 15 feet (12.0 ft. or 3.7 m true width) of 0.149 oz/ton gold (5.11 g/t). This intercept has been interpreted as the 805 Fault giving the feeder structure a shallower dip (60° versus 75°). This makes the hanging wall of the 805 Fault the primary target for future drilling along this structure. Drilling results and their combination with a new interpretation of the structural fabric of the area derived from geologic mapping and geophysics have produced a greatly expanded target area.

After a difficult and time-consuming effort which included three lost or abandoned holes, the Company was able to drill T-1001BC to 2,187 feet. Although detailed logging and whole rock geochemistry is ongoing, preliminary logging indicates a thick section of host rocks suitable to host "Pipeline style mineralization". Three low-grade sediment hosted intersections were made in the upper 610 feet (186 m) of the hole (see summary drilling results below). From 1,045 feet (318 m) to 1,100 feet (335 m) a fault zone was intersected containing anomalous gold values. It was not until T-1002BC was drilled and results received that it was determined that this fault is the 805 structure. Therefore, T-1001BC did not test the hanging wall of the 805 fault below 1,045 feet and drilled away from the structure into barren rock.

T-1002A, a Reverse Circulation pre-collar hole deviated from the planned vertical angle and was abandoned. This hole and T-1002BC are approximately 100 feet (30 m) apart at a depth of 600 feet (183 m). Above 650 feet (210 m), the two holes have similar intercepts of sediment hosted gold mineralization. Hole T-1002A intersected 40 feet (36 ft. or 11.0 m true width) averaging 0.054 oz/ton gold (1.85 g/t) between 610 and 650 feet (186 to 198 m), while in T-1002BC there was a 20 foot intersection, between 625 and 645 feet (190 to 196 m) of 0.046 oz/ton (1.57 g/t) This indicates significant potential to add open-pit ounces to the present resource (Indicated mineral resource of 173,562 ounces gold).

Drill hole T-1002BC, although designed to be drilled nearby but entirely within the footwall of the 805 Fault, crossed the fault between 973 and 1,033 feet (297 to 315 m). This was not recognized until later and the hole was continued to a total depth of 1,560 feet (475 m). The 805 Fault, previously thought to dip 75° to the southwest is now believed to dip no more than 60°. This moves the surface trace of the 805 Fault to the northeast and indicates the strong potential for mineralization in the hanging wall of this structure for several hundred feet to the southwest of the fault trace.

All results for intercepts of ≥ 5 feet @ ≥ 0.01 oz/ton gold (0.34 g/t) are listed below and a map of drill hole locations and new targets is posted on the company website.

Toiyabe Summary Drilling Results (≥ 5 feet @ ≥ 0.01 oz/ton Gold)
Hole No. From To Interval True Gold Silver True Gold Silver Target
  (feet) (feet) (feet) Width (oz/ton) (oz/ton) Width (m) (g/t) (g/t) Area
T-1001BC 185 205 20 18.0 0.013 0.02 5.5 0.43 0.57 805 Fault
  450 455 5 4.5 0.015 <0.01 1.4 0.52 <.50  
  595 610 15 13.5 0.011 0.05 4.1 0.38 1.57  
  1055 1065 10 8.0 0.014 0.03 2.4 0.49 0.90  
T-1002A 315 335 20 18.0 0.016 0.02 5.5 0.54 0.75 805 Fault
  365 370 5 4.5 0.013 0.04 1.4 0.44 1.30  
  545 585 40 36.0 0.023 0.01 11.0 0.78 0.31  
  610 650 40 36.0 0.054 0.02 11.0 1.85 0.58  
T-1002BC 335 365 30 27.0 0.034 <0.01 8.2 1.16 <.50 805 Fault
Including 335 340 5 4.5 0.129 0.02 1.4 4.42 0.70  
  380 390 10 9.0 0.012 <0.01 2.7 0.42 <.50  
  450 460 10 9.0 0.011 0.03 2.7 0.36 1.15  
  555 565 10 9.0 0.013 0.02 2.7 0.43 0.60  
  625 645 20 18.0 0.046 0.02 5.5 1.57 0.68  
  973 1033 60 48.0 0.059 0.05 14.6 2.03 1.83  
Including 1003 1018 15 12.0 0.149 0.06 3.7 5.11 2.03  
  1175 1190 15 12.0 0.016 0.01 3.7 0.54 0.23  

An interpretation of the structure of the Courtney area has been developed using geophysics, drilling and recent geological mapping. These studies indicate a series of northwest trending faults offset by at least four northeast trending structures. The recognition of these offsets has developed favorable portions of the northwest trending structures to be tested by drilling, particularly at the intersections with the northeast offsetting faults. A 3-4 hole reverse circulation drill program is being designed to test these intersections and to begin testing a strong geophysical anomaly to the northwest. This program is expected to be completed by year-end.

The current geophysical coverage has been extended to the southeast and results are expected shortly. Once all the data has been compiled an extensive exploration program will be designed for the 2011 work season.

Environmental permitting of a large drilling program will be initiated during the winter months. The Company plans to complete a Plan of Operation (POO) with the Bureau of Land Management (BLM) in Nevada that will allow exploration of a much larger portion of the property. 

"With the results of the drill program conducted at Toiyabe this season, we are poised to move aggressively to the next step of our exploration efforts," stated Al Fabbro, President of the Company. "We have made great strides in advancing our geological understanding of this gold property and fully expect that the next phase of exploration will demonstrate the full potential at Toiyabe."

Richard Kern (P.Geo), a director of American Consolidated Minerals Corp, is the Company's Qualified Person on the project. Mr. Kern has prepared the technical information contained in this news release.

American Consolidated is dedicated to the principles of environmentally sound mining practices and believes that environmental stewardship and mining can co-exist.

For more information on the Company and its properties please visit the Company's website at www.americanconsolidatedminerals.com.

ON BEHALF OF THE BOARD:

Al Fabbro, President & Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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