VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2012) - American Consolidated Minerals Corp. (TSX VENTURE:AJC) (the "Company") is pleased to report that recent field work has identified a significant geophysical and geochemical anomaly comprising a target measuring approximately 1,400 metres in length at its 50%-owned Sierra Rosario Silver/Gold Property ("Property"), located in Sinaloa State, Mexico.
In response to these positive results, a Phase I core drill program has been scheduled to test a 600 metre segment of the anomaly, with drilling expected to commence shortly. The program will be managed by International Northair Mines Ltd. (TSX VENTURE:INM) ("Northair"), the Project Operator, which is also the Company's 50% joint venture partner.
2012 Exploration Summary
During the first quarter of this year, the Company and Northair rehabilitated approximately 10 kilometres of access road and established 20 line kilometres of cut and flagged grid line, consisting of 10 lines spaced 200 meters apart over the northern two-thirds of the Property. Utilizing this grid, the Property was geologically mapped and soil sampled at 25-meter intervals. An IP survey (50 meter dipole spacing and n=6 separations) and a ground magnetic geophysical survey were also carried out over the grid. The work centred upon the San Raphael gossan zone where initial trenching and rock sampling by Northair returned an average value of 181 g/t silver and 0.32 g/t gold from 23 chip channel samples averaging five metres in length.
Results of the IP survey identified an open ended northwest-southeast trending chargeability anomaly measuring 1,400 metres in length, extending from line 4+00S (where it is 100 meters wide) to line 18+00S (where it is over 1,300 meters wide). The anomaly remains open to the south and southeast. Coincident with the eastern margin of the chargeability anomaly and a northwest-southeast trending ridge, Northair has outlined a silver-gold-arsenic-lead soil anomaly also measuring 1,400 metres in length, extending from line 4+00S to line 18+00S, where the anomaly remains open to the south and southeast. Individual soil sample values range up to 326.0 g/t silver; 0.712 g/t gold; 1320 ppm arsenic and 3470 ppm lead. The highest silver values occur on line 18+00S, the most southern grid line. Based on positive soil samples and coincident IP anomaly, the Company will expand its geochemical sampling grid to the east to establish the ultimate size of the potentially mineralized target.
Geology at Sierra Rosario
The Sierra Rosario Property is located approximately 25 kilometres of the town of Choix in Sinaloa State. It is underlain by Jurassic andesite and greywacke which in turn are overlain by gently north dipping ridge forming Cretaceous limestones and interbeded calcareous siltstones all intruded by Tertiary granodiorite and diorite. Overlying the northernmost portions of the property are Tertiary andesites capped by rhyolite.
Since January of 2012, work has concentrated on the San Raphael Zone where quartz veins and stockwork carrying significant values of silver and gold were initially noted in a small exposure of granodiorite intruding Cretaceous limestone and calcareous siltstones. The subsequent recent program has defined coincident anomalies that extend from this granodiorite plug at least 1400 meters to the southeast in an area mapped as Cretaceous limestone with calcareous siltstone. The geochemical anomalies extend in a northerly direction to the contact with the overlying Tertiary andesite suggesting these younger rocks post-date the silver mineralization.
This news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and approved by Fred Hewett, Northair's President and CEO, and a Qualified Person under NI 43-101.
Separately, the Company announces that it has agreed to settle $129,040 in outstanding debt to directors and officers of the Company through the issuance of 1,290,400 shares at a deemed value of $0.10 per share. The debt settlement is subject to approval by the TSX Venture Exchange. Shares issued in connection with the debt settlement will be subject to a four month hold period.
In addition, pursuant to Exchange policies and the Company's Stock Option Plan, an aggregate of 2,200,000 shares have been granted as incentive stock options at an exercise price of $0.10 per share. The options are exercisable for a period of five years, ending on May 24, 2017, and are subject to the requirements of the TSX Venture Exchange.
The Company also announces that Al Fabbro has been named President and Chief Executive Officer of the Company, expanding upon his prior role as President. Robert Eadie, who has stepped down as CEO, remains a director of the American Consolidated Board.
American Consolidated is dedicated to the principles of environmentally sound mining practices and believes that environmental stewardship and mining can co-exist.
For details on the Company and its properties, visit the Company's website at www.americanconsolidatedminerals.com.
ON BEHALF OF THE BOARD:
Al Fabbro, President, CEO & DirectorNeither 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.