American Consolidated Enters into Agreement to Acquire 50% Interest in Sierra Rosario Property, Mexico
11 Mai 2011 - 2:00PM
Marketwired
American Consolidated Minerals Corporation ("ACM" or the "Company")
(TSX VENTURE: AJC) is pleased to announce it has entered into an
agreement with Sparton Resources Inc. ("Sparton") (TSX VENTURE:
SRI) for the acquisition of Sparton's 50% interest in the
500-hectare Sierra Rosario Property ("Sierra Rosario"), located in
the state of Sinaloa, Mexico (the "Acquisition"). Sparton currently
holds a 51% interest in Sierra Rosario in a Joint Venture with
International Northair Mines Ltd. ("INM") (TSX VENTURE: INM) which
owns the remaining 49%. Sparton will transfer a 1% interest in
Sierra Rosario to INM concurrently with the closing of the first
payment and share issuance from ACM to Sparton, as outlined below.
Under the terms of the agreement, the Company will have a 45-day
period to conduct a due diligence study on Sierra Rosario, and upon
giving Sparton notice to proceed with the Acquisition, American
Consolidated will acquire the 50% right, title and interest in and
to Sierra Rosario by:
1. Paying to Sparton $250,000 ($10,000 upon signing and non-refundable)
and, subject to acceptance of the agreement by the TSX Venture Exchange
(the "Exchange"), issuing to Sparton 250,000 common shares of the
Company; and
2. Paying to Sparton an additional $250,000 and issuing to Sparton a
further 250,000 shares of the Company on the first anniversary date of
Exchange acceptance.
Sparton will receive Net Smelter Return Production Royalties
payable from ACM's share of production of:
i. 3% of ACM's share of Base Metal Production
ii. 2% of ACM's share of Gold Production
iii.1.5% of ACM's share of Silver Production
ACM will assume the responsibilities of a 50% partner in the
joint venture with INM and be subject to the existing joint venture
terms. INM will become operator of the joint venture upon closing
of the Acquisition.
The Sierra Rosario Property was explored by Sparton and INM over
a four year period from 2004-2008. It lies within the Sierra Madre
Occidental Mineral Belt of Sinaloa Province in Northern Mexico,
approximately 25 kilometres northwest of the town of Choix and 40
kilometres east of the town of Alamos. Both areas have a strong
history of precious metals mining.
Included in the multiple precious metals targets at Sierra
Rosario are epithermal gold veins hosted by Tertiary volcanic
rocks, disseminated silver and gold in an altered rhyolite porphyry
intrusive, in addition to base and precious metals hosted
replacement bodies (mantos) within Cretaceous limestone.
This underexplored area includes a minimum of 175 placer
workings in various drainages throughout the project area. At the
present time, the source of the gold in many of the drainages is
unknown, leading to the potential of multiple discoveries on the
property.
Previous drilling of the Josca vein system in the south end of
the property suggested limited potential. However, road building
for the proposed drilling program in 2011 has been extended and
opened up access to the northern section of Sierra Rosario which
hosts the potentially bulk mineable zones of precious metals.
Exploration of the San Rafael zone in the north part of Sierra
Rosario has defined a 70-by-200 meter area of silicified and
stockwork quartz veined rhyolite porphyry. This mineralized body
has been sampled both underground and within road cuts. The initial
sampling of underground workings and outcrops included 23 samples
with average weights of 2.5 kg and ranged from three to seven
metres in width, averaging five metres in width. An arithmetic
average for the 23 samples worked out to 181 g/t silver and 0.32
g/t gold. In 2008, channel sampling along road cuts totaled 321
samples with continuous sampling along three meter intervals. Two
continuous channel samples included 34.8 metres of 192 g/t silver
and 27 metres of 91.8 g/t silver.
As well, several small underground mines, including La
Descubriadora and Dulces Nombres, were discovered east of San
Rafael during the work program. Both host manto-skarn base and
precious metal mineralization. At Dulces Nombres, 35 chip samples
from 1.5 to 3.0 metres in length averaged 0.71g/t gold, 263 g/t
silver and 0.35% copper. At La Descubriadora, 19 chip samples of
similar size taken underground averaged 0.40g/t gold and 83.7 g/t
silver.
There has been no drilling documented for any of these
mineralized occurrences in the northern part of Sierra Rosario.
ACM and INM will meet to design a joint exploration program for
the 2011 exploration season after the notice to proceed is given to
Sparton, the details of which will be publicly announced once the
planning is completed and approved.
"The Sierra Rosario Property in Mexico is drill-ready and may
host a bulk-tonnage mineable silver-gold deposit," said American
Consolidated Minerals President, Al Fabbro. "In addition, there are
several attractive polymetallic targets within the property that
warrant further investigation. Furthermore, we are excited to be
working with International Northair Mines as operator of the
project that has proven and successful exploration experience in
Mexico."
A. Lee Barker, P.Eng., P. Geo., President and CEO of Sparton
Resources Inc., is the Qualified Person under National Instrument
43-101 for the Sierra Rosario project. Mr. Barker 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 details on the Company and its properties, visit the
Company's website at www.americanconsolidatedminerals.com.
ON BEHALF OF THE BOARD
Al Fabbro, President
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.
Contacts: American Consolidated Minerals Corporation Al Fabbro
President 1-604-602-4935 or Toll Free: 1-866-602-4935
1-604-602-4936 (FAX) www.americanconsolidatedminerals.com
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