American Consolidated Minerals Corp. (TSX-V: AJC and OTC: AMERF) announced today the signing of an Agreement with Sparton Resources Inc. (TSX-V: 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 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.
Subject to a 45-day due diligence period, announced consideration for the acquisition entails payment of $500,000 (1/2 at time of closing and half at the one year anniversary of exchange acceptance) and 500,000 shares of American Consolidated stock (also 1/2 at closing and 1/2 at the one year anniversary of exchange acceptance) and a net smelter royalty of 3% (base metal), 2% (gold production) and 1.5% (silver production).
Commenting in the release, American Consolidated Minerals President, Al Fabbro stated: “The Sierra Rosario Property in Mexico is drill-ready and may host a bulk-tonnage mineable silver-gold deposit. 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.”