American Consolidated Minerals (AJC:CA)

American Consolidated Mineral's strategy is:

• To acquire quality assets at various stages of development with exploration potential for gold and copper
• Prioritize projects that add value and will lead the company to success
• Joint venture high risk/reward properties
• Bring fresh ideas, new technologies and expertise to historical deposits
• Success through drilling

Projects

Location

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The Toiyabe Project is located approximately 78 miles south-southwest of Elko, Nevada and is located only six miles south of Barrick's Cortez Hills gold discovery. Other recent nearby discoveries include the ET Blue project 6 miles east and Red Hill about 10 miles east. Each of these discoveries are currently under development by Barrick, and are similar in genesis and host rocks to Toiyabe. Golden Oasis Exploration, Corp. (now American Consolidated Minerals Incorporated or ACM) has conducted a drilling program over the past 3 years to test near-surface gold anomalies and determine the location of favorable stratigraphy for bulk minable mineralization.



American Consolidated holds 165 claims totalling 3,330 acres.



Resource



The indicated mineral resource at Toiyabe for a 0.01 opt (ounce per ton) gold cutoff is 173,562 contained ounces of gold. This equates to 4,975,000 tons at an average grade of 0.0349 ounces per ton (opt). This resource estimation utilized drill results from ACM drilling as well as historic drilling. Historic drill results were used where assays and logs appeared intact and reasonably verified. The majority of this resource is shallow.



Nevada ranks as one of the world's premier gold mining regions, with over 7 million ounces produced annually. Recently, the vast majority of gold reserves and production has come from Northern Nevada, along three major gold trends, (Carlin, Battle Mountain and Getchell). The Battle Mountain -- Eureka Trend has identified more than 32 million ounces of gold over the past thirty years, making it the second most productive gold belt in Nevada. Much of the recent production is from Barrick's 10 million oz Pipeline- Pediment deposits. New discoveries in the past five years have boosted interest in the trend.
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Location



The Lone Ranch Property consists of 54 unpatented mineral claims located in Ferry County, Washington, approximately 3 miles south of the Canadian border. The property is accessible by paved and gravel roads from Grand Forks, British Columbia (approximately 12 miles) or Curlew, Washington (approximately 15 miles). The property is bisected by a number of unimproved logging roads. We believe the property has the potential to host significant mineralization.



Geological Setting and Mineralization



Regionally the Lone Ranch Property is found within the Republic mining district. The Lone Ranch Property is underlain by ancient metamorphosed sediments. Regionally, the host rocks appear to be the youngest and least metamorphosed of the various metamorphic units which comprise the area. The Property lies along the NW flank of a dome and rocks uniformly dip 30°-60° to the west. Just west of the Lone Ranch Property the east margin of the gold rich Republic graben is found striking NNE. The Republic graben is a 6-mile by 52-mile down-dropped feature which has been filled with Tertiary lavas and intrusives.



The host rocks within the sulfide zone are metamorphosed banded siliceous sediments. Within the principal mineralized zone and its northerly extension, the host rocks are strongly banded due to metamorphic differentiation.



Structure in the area appears to be simple. Rock units strike generally North-South and dip relatively uniformly at moderate angles to the West. Dominant fracturing strikes northwest and dips 60°-65° southwest.



The major lithologic units in the area of the Lone Ranch Property occur as metamorphic rocks trending north to northeast with shallow to moderate dips to the west. These units, presumably of Upper Paleozoic age, become younger to the west.



The oldest mapped unit in the project area consists of a package of metasedimentary rocks containing white to reddish brown micaceous quartzite and white to gray marble along with lesser amounts of dark gray biotite schist. These rocks are overlain by a metavolcanic unit containing metasedimentary interbeds. Several intrusives are exposed on the property.



Geophysical Results



View July 2007 Geophysical Results in PDF Format

Location



The property is located in Esmeralda County, Nevada approximately 26 miles south of Goldfield in the Tokop mining district. Access is via 10 miles of gravel roads from the small hamlet of Gold Point.



History



Although there is little information on the early history of the area, the property was likely first discovered in the 1860's when Silver Peak, located 30 miles to the northwest, was developed. Below the seven adits that make up the Empress Mine are the remnants of a mill and several stone foundations from that era. Little production is reported for the district, although the Gold Point district, immediately to the north, produced approximately $1,000,000 (1900 dollars) in gold and silver. The Wonder Mine, located 2,000 feet southwest of Empress, was worked in the 1930's as judged by artifacts, and probably direct shipped its ore to a mill elsewhere. The only known drilling of the property consists of three RC holes above the Wonder adit, drilled in the 1980's by Homestake Mining. The owner never received the drilling data and Barrick, who took over Homestake, say they have no file on the property.



Geology, Structure and Mineralization



The property lies within the southern portion of the Walker Lane structural corridor. Major mines within the lower portion of the Walker Lane include Tonopah, Goldfield and Silver Peak. Mineralization in the Tokop district occurs in quartz veins hosted by granitic rocks of the Sylvania pluton. At least three separate east-west trending, steeply dipping quartz veins are exposed on the property. Over the years, the property owner has had several geologists sample the veins. Most of this sampling is underground as the veins are poorly exposed on the surface. Results show several +1 oz/ton gold and silver assays and include an 11.7 oz/ton gold assay taken by Homestake.



With a couple exceptions, the adits of the Empress Mine are caved allowing only partial inspection. The Wonder Mine, however, has excellent access and was sketch-mapped and sampled by the author. In the Wonder adit the vein is a typical pinch and swell quartz vein with widths from under 6 inches to 10 feet within a steeply south dipping fault zone. Although difficult to sample because the wider portions of the vein were mined out above the level, several samples were taken along the 500 feet of exposed vein. The results are encouraging in that most assayed above the 0.3 oz/ton gold needed for underground mining. Two of 11 samples taken assayed +1 oz/ton with the high being 1.848 oz/ton over 2.0 feet. The highest silver value in the Wonder sampling is 3.18 oz/ton.



Targets



Enough sampling has been done to indicate two high-grade gold/silver vein targets at the Empress project. Accurate mapping and sampling of the Wonder and Empress working that are accessible should be completed to refine drill targets. Work should start at the more accessible Wonder Mine with core drilling of the vein as soon as surveying is completed. Drilling of the various ore shoots should quickly establish the size potential of the deposits.