Oct 21 2010
American Consolidated Minerals Corporation (TSX VENTURE:AJC) has provided the following exploration update for its Toiyabe Project, located 12 miles south of the Pipeline Mine in northeastern Nevada.
In the last few days, the Company has initiated a reverse circulation drill program designed to test two northeast trending structures that are viewed as potential feeder faults. These structures were identified by a geophysical survey conducted over the area.
The first of the new drill holes, T-1003, is testing a fault that offsets the "805" and West Graben faults. This is located 500 feet (150 m) northwest of the Company's recently completed deep holes T-1001 and 1002. This hole will also test a north-south fault interpreted in the same area. Drill hole T-1004 will test a second northeast trending fault approximately 1,000 feet (300 m) further to the northwest. T-1004 will also test beneath an undrilled gold-in-soil anomaly. Weather permitting, two holes will be drilled in each target.
"The knowledge gained from this summer's exploration program is extremely important to unlocking Toiyabe's potential," commented Company President, Al Fabbro. "The hanging wall target at depth is of particular interest to us."
Deep drilling conducted over the summer indicated that there is at least an 800 foot horizon of favorable host rock from 1,200' to 2,000' which makes the hanging wall side of the fault a very favorable target at these depths. Hole 1002, which was collared in the hanging wall, crossed the fault at 1000 feet and was well into the footwall when it reached the favorable stratigraphy.
Planning for next year's drill program is already underway. Testing of the hanging wall of the "805" fault within favorable host rocks identified below 1000 feet in recent drilling will be the primary focus.
The program will also involve near-vertical drilling of host rocks adjacent to the "805" fault with each hole penetrating the fault. This fault is gold-bearing, as shown by hole T-0902 which averages 0.106 oz/ton gold (3.62 g/t) over 49 feet (14.9 m) (29.4 ft or 9.0 m true width) from 875 to 924 feet (267 to 282 m). Included within this interval is 5 feet (3.0 ft or 0.9 m true width) of 0.473 oz/ton gold (16.19 g/t). Reverse circulation drilling, effective to 700-800 feet (213-244 m), will be the primary tool to test the targets with core drilling used for deeper holes.
If the northeast or north-south structures currently being tested are found to be mineralized, there will be more emphasis next year on drilling fault intersections as well as testing along these potential feeder faults.
"Our upcoming program will be twofold in nature," continued Company President Al Fabbro. "First of all, the Company's primary target remains a deep bulk minable Pipeline or Cortez Hills style deposit. Additionally, a shallow reverse circulation program is being designed to increase and build on the Company's Indicated Mineral Resource of 174,291 ounces of gold."
Interpretation of results from a recently completed geophysical survey over the southeastern extension of the mineralization trend will be completed shortly. New drill targets are expected from this work. Finally, the Company anticipates having a complete drill plan for 2011 in place by the end of next month.
Richard Kern (P.Geo), a director of American Consolidated Minerals Corp., is the Company's Qualified Person on the Toiyabe Project. Richard Kern has prepared the technical information contained in this press release.
Source: American Consolidated Minerals Corp.