American Consolidated Minerals Corporation
TSX VENTURE : AJC

American Consolidated Minerals Corporation

December 06, 2010 09:00 ET

American Consolidated Minerals Corporation: Review of 2010 Exploration Programs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - American Consolidated Minerals Corporation (TSX VENTURE:AJC) -

Toiyabe Highlights

  • 800 meters of strike length added to the 805 Fault Target

  • 805 Fault Target identified as a major feeder structure that extends the related mineralization to depth

  • North and south extensions of the 805 Fault related gold zone are primary drilling targets

  • Hanging wall of the 805 Fault identified as primary target for future drilling

  • 250 meters of prospective host rock identified at depth

Lone Ranch Highlights

  • Eight of 12 drill holes confirm the existence of gold mineralization within two of the three zones tested

  • Gold values from 0.3 g/t to 2.15 g/t were intersected in all three holes located in the Middle Ranch Zone

  • The gold values in drilling occur over an interval of 20 to 40 feet (6 to 12 m)

American Consolidated Minerals Corporation (the "Company") is pleased to provide a review of its 2010 Exploration Program at the Toiyabe and the Lone Ranch properties located in Nevada and Washington respectively. 

The drilling program at Toiyabe identified the 805 Fault as the principal feeder structure in the area tested and extended 805 related mineralization to depth with the intercept of 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) in hole T-1002BC.

Toiyabe - Detailed Project Review

Deep drilling by the Company targeted favorable host rocks in the hanging wall and footwall of the 805 Fault, previously thought to be a high-angle feeder structure. Drilling indicates the 805 Fault has a shallower dip (60° versus 75°). This makes the hanging wall of the 805 Fault and the fault itself a primary target for future drilling. The revised cross section is shown on the Company's website, http://www.americanconsolidatedminerals.com.

The 805 Fault is now thought to be the equivalent of the Courtney A Fault near the surface. This revelation creates a west dipping 805 Fault and hanging wall target extending from the surface to a depth of around 1,000 feet ( 330 m) to 1,300 (400 m) to the west. West of this, deep drilling would be needed to further test the target. The north and south extensions of the 805 Fault related gold zone defined to date will be a primary drilling target at Toiyabe for 2011.

In the fall of 2010 four angled reverse circulation (RC) holes were drilled to determine if several northeast trending faults that offset the northwest trending 805 Fault are mineralized. The first hole drilled was T-1004, located 1,500 feet (450 m) to the NW of the T-1001/1002 holes. The hole is all in upper plate Valmy, but intersects a dike that could be the northeast fault targeted. No significant mineralization was encountered. The drill hole appears to be well above the Horse Canyon favorable stratigraphy.

Holes T-1003, 1005 and 1006 were fanned to the NW from a site 500 feet (150 m) north of 1002 and are all in the Horse Canyon formation. All three holes hit voids believed to be indicative of a major northeast trending fault. Although one hole contained anomalous gold (0.3-0.7 g/t), it does not appear related to the northeast trending fault. The conclusion is that the northeast faults are major offsetting features, but they are post-mineral and therefore unmineralized.

In the fall of 2010 the Company conducted an additional geophysical survey to the southeast of this year's deep drilling. The results of this survey are being combined with previous surveys and a new interpretation is being processed. Management can now conclude that 2600 feet (800 m) of strike length has been added to the 805 target.

The Company is currently formulating its 2011 Toiyabe exploration plan. This program will test the north and south extensions of the 805 fault and untested geophysical anomalies in the northeastern part of the Courtney area. Extensive RC drilling of the shallower targets, as well as core drilling of deeper targets, is also planned.

Lone Ranch - Detailed Project Review

Over several years, the company identified an alteration zone traceable on surface for over 24,000 feet (7,300 m) along strike at Lone Ranch. Several geophysical anomalies were identified as a result of an EM survey conducted by the company in 2006. One of these anomalies is coincident with gold mineralization intersected by Cyprus Minerals and Kennecott in the late 1980's and early 1990's. This anomaly was named the Adit Zone for an adit near the center of the anomaly that contains 0.1 opt gold over 100 feet of length. Drilling of ten core holes around the adit in past years encountered 0.66 to 1.47 g/t gold over 20 to 51 feet. 

The geophysical anomalies are extensive ranging from 1000 feet wide by 4,500 feet long (300 by 1370 m) for the Adit Zone to 3,100 feet wide by 8,200 feet long (945 by 2,500 m) at the North Forty Zone. According to the geophysicist's report, the cause of the anomalies is within the first 330 feet (100 m) of the surface. 

The Company's drill program targeted three anomalies. Twelve wide spaced holes were drilled for a total of 4670 feet (1423 m) and an average of 389 feet (118.6 m) per hole. Six holes were spaced roughly 800 feet by 2,500 feet (244 by 762 m) within the North Forty target. Two holes were spaced about 400 feet (122 m) apart in the Middle Ranch target while one hole was fanned at a 45 degree angle from the southernmost hole. Two holes were spaced 2,700 feet (823 m) distant from each other at the Adit target with the third hole fanned at a 45 degree angle from the southernmost hole. 

Partial results for eight of 12 drill holes confirm the existence of gold mineralization within two of the three zones tested. Gold values from 0.3 g/t to 2.15 g/t were intersected in all three holes located in the Middle Ranch zone. Gold mineralization to 4.5 g/t has also been obtained from select samples of dump material collected from pits 1000 feet (305 m) to the south of the southern hole in this area. The gold values in drilling occur over an interval of 20 to 40 feet (6 to 12 m) thick and appear to be close to true thickness based on the bedding attitude in core. 

In the Adit Zone one of two holes that have been assayed encountered a thicker zone of anomalous gold within several sulfide rich layers from 50 to 85 thick. No gold values greater than 0.11 g/t were found within this hole. The second hole had no gold while the third of three holes drilled in this area has not been assayed yet. 

The North Forty Target has only two of six holes completely assayed to date. No significant gold values were intersected in either of holes LR 10-4 or 10-6. Although drilling encountered thick intercepts of alteration, none of the alteration and mineralization noted in the southern target areas were visible in the northern core holes. However, trace elements are elevated and will be evaluated for potential proximity to a mineralizing source.

The Company will fully evaluate the assays results when all data has been returned in order to determine the next phase of exploration.

"The 2010 exploration program at Toiyabe has both increased our understanding of the property and confidence in our targets," said Company President, Al Fabbro. "The drill targets have become much larger in size with the 850 Fault extending almost 4000 feet in length and the new geophysical interpretations defining bona fide world class drill targets. The work completed so far allows us to concentrate our efforts moving forward with a greater degree of confidence and a more focused plan. This year's exploration program has brought us much closer to unlocking the true potential of Toiyabe. We look forward to 2011 with great expectations."

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

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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