AMERICAN CONSOLIDATED MINING COMPANY ANNOUNCES $4.6 MILLION AGREEMENT WITH GOLDSACK RESOURCES LTD.
AMERICAN CONSOLIDATED MINING COMPANY ANNOUNCES $4.6 MILLION AGREEMENT WITH GOLDSACK RESOURCES LTD. SALT LAKE CITY, Nov. 25 /PRNewswire/ -- American Consolidated Mining Company (ACMG) announced today it has signed a $4.6 million agreement with Goldstack Resources Ltd. (of Val d'Or Quebec, Canada), to explore, develop and mine three target areas on ACMG's property in the Clifton Mining District located on the Utah-Nevada border. Drilling will begin Tuesday, Nov. 26. Yellow Hammer The agreement calls for Goldstack to expend $1,000,000 to put the Yellow Hammer Vat Leach Project into production. The Yellow Hammer Claim Group currently has $4.4 million in ore reserves. Goldstack will expend another $600,000 in drilling, to expand reserves, for the continued succession of vat leaches on the Yellow Hammer Project. Clifton Shear Zones Goldstack will expend $2,000,000 over the next 24 months to develop ore reserves on ACMG's Clifton Shear Zones. The Mining House Inc. (of Toronto), reports that these shear zones have apparent strike lengths greater than 6,000 feet long, with individual zones up to 65 feet wide. Past drilling has shown mineralization to a vertical depth of at least 1,730 feet. Assays taken from shallow workings in the zones have varied, but are very positive; with fire assay samples running as high as .24 oz. per ton of gold and 22 oz. per ton of silver. Lucy-L Deposit Goldstack will expend $500,000 over the next 24 months to develop ore reserves on the Lucy-L Claim Group. These patented mining claims have historically shown very high values for gold and silver, with minor amounts of copper and tungsten. In 1981, a 3 1/2 ton sample from Lucy-L was sent to Metals Research Corp. for a cyanide leach test. The head grade was calculated to be 0.441 oz. per ton gold and 61.4 oz. per ton silver. Airborne Geophysical Goldstack will commission an airborne geophysical study of all ACMG's properties as per the agreement. This study will be used for detecting conductive mineralization which will indicate underlying mineral deposits as they run throughout the property. The data can also assist in estimating overburden thickness for drilling budgets and planning. Joint Venture Goldstack Resources Ltd., after having completed the above mentioned work along with other commitments, will have earned a 50 percent joint venture interest in the mineral rights of the three indicated areas. ACMG will retain all the property and the other 50 percent of the mineral rights on the three indicated areas. /NOTE: American Consolidated Mining Co. is listed on the OTC Bulletin Board under the code ACMG/ -0- 11/25/91 /CONTACT: Keith Moeller of American Consolidated Mining Co., 801-756-1414; or Larry Freedman of Merit Investment Corp., Toronto, 416-864-3591, or Jim Pascucci, Stockholder Communications, 818-716-1000, both for American Consolidated Mining/ CO: American Consolidated Mining Co. ST: Utah IN: MNG SU:
SE-DM -- SD001 -- 6665 11/25/91 08:01 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 25, 1991|
|Previous Article:||PITTSBURGH BREWING COMPANY INTRODUCES KEENE'S NON-ALCOHOLIC BEER|
|Next Article:||GOULDS PUMPS ANNOUNCES REDEMPTION OF CONVERTIBLE SUBORDINATED DEBENTURES|