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ORBMINCO LIMITED — Capital/Financing Update 2011
Oct 3, 2011
65473_rns_2011-10-03_c7a14577-6bba-4afa-92b5-ecb3a207c214.pdf
Capital/Financing Update
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4[th] October 2011
ASX Release By e-lodgement
Drilling recommences at San Marcos Gold project-encouraging results to date
The Directors of Australian-American Mining Corporation (“AusAmerican” or ‘the company”) announce that drilling has re-commenced at the San Marcos Project in La Paz County Arizona. This drilling will complete the Phase I Reverse Circulation Drilling Project that is intended to determine the lateral extent of gold mineralization away from the San Marcos Open Cut mine.
The balance of Phase I drilling will consist of sixteen holes to lengths of up to 122 meters. All holes will be drilled at minus 45 degrees to optimize the intersection of both flat and high-angle mineralized structures. An additional 1,950 meters will be drilled with the reverse circulation rig.
At the same time, a core rig has been moved onto the San Marcos Property to drill two of three planned core holes. One of these holes will twin previously drilled hole SM-11A, which intersected gold-bearing sulphides near the end of the hole. The intent of this drilling is to further test the sulphide mineralization at greater depth and to obtain core samples for geologic and mineralogical investigations.
The second core hole will twin Westmont Mining Inc. Hole 89-08, which penetrated several zones of good grade mineralization. Core from this hole will be tested to confirm historic assay results and to make geologic and mineralogical observations pertinent to understanding the mineralizing system at San Marcos.
A third core hole will be drilled when the Phase I Reverse Circulation Drilling has been concluded at a site yet to be determined. Total core drilling at this phase of the project is estimated to consist of 900-950 meters.
Table 1, below gives a listing of important intercepts both by Westmont Mining Incorporated drilling in 1989-1990 and the first 16 holes by Uranium Company of Arizona through August 2011. The Figure following the table shows all outcrop samples, previously completed drill holes and the balance of planned Phase I drill hole locations. Also shown are the first 16 Phase II drill hole locations, which drilling will commence in the fourth quarter of this year.
Regards, Jim Malone Executive Chairman
Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000 Telephone: (08) 9325 5568, Facsimile (08) 93255574
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Table 1:
TABULATION OF HISTORIC AND PHASE I DRILLING RESULTS SAN MARCOS PROJECT LA PAZ COUNTY, ARIZONA
| SAN MARCOS PROJECT LA PAZ COUNTY, ARIZONA |
SAN MARCOS PROJECT LA PAZ COUNTY, ARIZONA |
SAN MARCOS PROJECT LA PAZ COUNTY, ARIZONA |
|
|---|---|---|---|
| WESTMONT MINING INC. 1989-1990 | |||
| DRILL HOLE ID | INTERVAL | LENGTH | GRADE |
| 89-01 | 13.7-16.8 M 18.3-19.8 M 35.1-36.6 M |
3.1 M 1.5 M 1.5 M |
1.9 G/T 0.34 G/T 1.03 G/T |
| 89-02 | 16.8-21.3 M 29.2-35.1 M 39.6-41.1 M |
4.5 M 5.9 M 1.5M |
0.43 G/T 0.65 G/T 0.34G/T |
| 89-03 | 51.8-53.3 M | 1.5 M | 0.48 G/T |
| 89-04 | 45.7-48.8 M 62.5-64.0 M |
3.1 M 1.5 M |
0.45 G/T 0.48 G/T |
| 89-05 | 48.8-56.4 M | 7.6M | 0.24G/T |
| 89-06 | 32.0-33.5 M 33.5-38.1 M 53.3-54.8M |
1.5 M 4.6 M 1.5M |
1.87 G/T 0.25 G/T 0.27G/T |
| 89-07 | 65.6-68.6 M 71.6-80.8 M 80.8-88.4 M |
3.0 M 9.2 M 7.6 M |
0.31 G/T 2.62 G/T 0.22 G/T |
| 89-08 | 3.1-10.7 M 33.5-36.6 M 42.7-45.7 M 47.2-48.7 M |
7.6 M 3.1 M 5.0 M 1.5 M |
1.87 G/T 0.61 G/T 11.9 G/T 0.41 G/T |
| 89-09 | 6.1-10.7 M 27.4-28.9 M 33.5-38.1 M 56.4-57.9 M |
3.6 M 1.5 M 4.6 M 1.5 M |
2.71 G/T 0.48 G/T 1.94 G/T 0.34 G/T |
| 89-10 | 6.1-13.7 M 16.8-18.3 M 19.8-21.3 M 24.4-30.5 M 35.1-39.6M |
6.6 M 1.5 M 1.5 M 6.1 M 4.5M |
0.56 G/T 0.2 G/T 0.2 G/T 1.41 G/T 0.65 G/T |
| 89-11 | BARREN |
Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000 Telephone: (08) 9325 5568, Facsimile (08) 93255574
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| DRILL HOLE ID | INTERVAL | LENGTH | GRADE |
|---|---|---|---|
| 89-12 | 6.1-10.6 M 13.7-15.2 M 67.1-68.6 M 73.2-76.2 M 79.2-80.7 M |
4.5 M 1.5 M 1.5 M 3.0 M 1.5 M |
0.34 G/T 0.2 G/T 0.41 G/T 0.24 G/T 0.2 G/T |
| 89-13 | 12.2-13.7 M 70.1-85.3 M |
1.5 M 5.2 M |
0.24 G/T 0.24 G/T |
| 89-14 | 32.0-35.0M | 3.0M | 11.3 G/T |
| 89-15 | 39.6-42.6 M | 3.0 M | 1.04 G/T |
| 89-16 | 25.9-27.4 M | 1.5M | 0.34G/T |
| 89-17 | 15.2-16.7 M 19.8-27.4 M 67.1-68.6 M 103.6-105.1 M 105.1-108.2 M 109.7-115.8 M |
1.5 M 7.6 M 1.5 M 1.5 M 3.1 M 6.1 M |
0.41 G/T 0.71 G/T 0.61 G/T 0.2 G/T 0.75 G/T 0.35 G/T |
| 90-01 | 9.1-13.7 M | 4.6M | 2.11G/T |
| 90-02 | 67.1-68.6 M | 1.5 M | 0.24 G/T |
| 90-03 | 27.4-28.9 M 56.4-61.0 M |
1.5 M 5.6 M |
0.2 G/T 0.22 G/T |
| 90-04 | 64.0-67.0M | 3.0M | 0.22G/T |
| 90-05 | 47.2-48.7 M 53.3-56.3M |
1.5 M 3.0M |
0.27 G/T 0.41G/T |
| AUSAMERICAN DRILLING 2011 (JULY- AUGUST 2011) | |||
| DRILL HOLE ID | INTERVAL | LENGTH | GRADE |
| SM-01A | 9.1-10.4 M 21.3-22.8 M 117.3-120.3 M |
1.5 M 1.5 M 3.0 M |
0.21 G/T 0.38 G/T 0.37 G/T |
| SM-01B | 57.9-59.4 M 117.3-120.3 M |
1.5 M 3.0 M |
0.27 G/T 0.34 G/T |
| SM-09A | 3.0-7.6 M 12.2-16.8 M 25.9-27.4 M 80.8-82.3 M 85.3-88.3M |
4.6 M 4.6 M 1.5 M 1.5 M 3.0M |
0.44 G/T 0.23 G/T 0.58 G/T 0.22 G/T 0.60 G/T |
| SM-09B | 4.6-6.1 M 13.7-16.7 M 25.9-27.4 M 30.5-32.0 M 38.1-39.6 M 70.1-74.7 M |
1.5 M 3.0 M 1.5 M 1.5 M 1.5 M 4.6M |
0.48 G/T 0.32 G/T 0.97 G/T 0.40 G/T 6.83 G/T 0.60 G/T |
Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000 Telephone: (08) 9325 5568, Facsimile (08) 93255574
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| AUSAMERICAN DRILLING 2011 (JULY- AUGUST 2011) Continued | AUSAMERICAN DRILLING 2011 (JULY- AUGUST 2011) Continued | AUSAMERICAN DRILLING 2011 (JULY- AUGUST 2011) Continued | AUSAMERICAN DRILLING 2011 (JULY- AUGUST 2011) Continued |
|---|---|---|---|
| DRILL HOLE ID | INTERVAL | LENGTH | GRADE |
| SM-10A | 1.5-18.3 M | 16.8 M | 2.25 G/T |
| SM-10B | 0-1.5 M 3.0-15.2 M 24.4-29.0 M 30.5-32.0 M 33.5-35.0 M 39.6-41.1 M |
1.5 M 12.2 M 4.6 M 1.5 M 1.5 M 1.5M |
0.26 G/T 1.45 G/T 0.24 G/T 0.46 G/T 0.50 G/T 0.23 G/T |
| SM-11A | 7.6-15.2 M 16.8-18.2 M 19.8-21.3 M |
7.6 M 1.5 M 1.5 M |
2.67 G/T 0.24 G/T 0.26 G/T |
| SM-11B | 1.5-3.0 M 7.6-15.2 M 16.8-18.3 M 22.9-30.5 M 33.5-35.0M |
1.5 M 7.6 M 1.5 M 7.6 M 1.5M |
0.63 G/T 0.69 G/T 0.26 G/T 2.19 G/T 0.53 G/T |
| SM-12A | 0-4.6 M 6.1-7.6 M 10.7-18.3 M 19.8-21.3 M 48.8-50.3 M 54.9-56.4 M |
4.6 M 1.5 M 8.6 M 1.5 M 1.5 M 1.5M |
18.49 G/T 0.94 G/T 0.47 G/T 0.32 G/T 1.37 G/T 0.19 G/T |
| SM-12B | 0-3.0 M 6.1-7.6 M 9.1-15.2 M |
3.0 M 1.5 M 6.1 M |
1.13 G/T 0.19 G/T 0.47G/T |
| SM-13A | 0-4.6 M 13.7-15.2 M |
4.6 M 1.5M |
1.34 G/T 0.24G/T |
| SM-13B | 0-1.5 M 41.1-42.6 M 62.5-65.5 M 67.1-68.6 M 88.4-89.9 M |
1.5 M 1.5 M 3.0 M 1.5 M 1.5 M |
0.49 G/T 0.43 G/T 0.48 G/T 0.40 G/T 0.26 G/T |
| SM-14A | 3.0-6.1 M 7.6-10.7 M 22.9-24.4 M 97.5-100.5 M 118.9-120.4 M |
3.1 M 3.1 M 1.5 M 3.0 M 1.5M |
0.66 G/T 0.43 G/T 0.28 G/T 0.32 G/T 0.26 G/T |
| SM-14B | 0-3.0 M 4.6-10.7 M 12.1-13.6 M |
3.0 M 6.1 M 1.5 M |
0.29 G/T 0.29 G/T 0.24 G/T |
Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000 Telephone: (08) 9325 5568, Facsimile (08) 93255574
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| 29.0-30.5 M 71.6-73.1 M |
1.5 M 1.5M |
0.32 G/T 0.23 G/T |
|
|---|---|---|---|
| DRILL HOLE ID | INTERVAL | LENGTH | GRADE |
| SM-15A | 68.6-70.1 M 109.7-111.2 M |
1.5 M 1.5 M |
0.28 G/T 0.27 G/T |
| SM-15B | 50.3-51.8 M 53.3-54.8 M |
1.5 M 1.5 M |
0.74 G/T 0.86 G/T |
Table 2: drilling location map
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Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000 Telephone: (08) 9325 5568, Facsimile (08) 93255574
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Precautionary Notes
Note (1) - These exploration targets are speculative in nature and are not yet classified a resource JORC or NI 43-101. There is insufficient data or work completed by the company to define a mineral resource other than that already reported under the JORC or NI 43-101 and it is uncertain if further exploration will result in the determination of a mineral resource.
Competent person
The review of exploration activities and results contained in this report is based on information compiled by Mr. Denis Geldard, Chief Executive Officer and Executive Director of Australian-American Mining Corporation Limited (“AusAmerican” or “Company”). Mr Geldard is a member of the Australasian Institute of Mining and Metallurgy. Mr Geldard is considered a competent person pursuant to paragraph 8 of the JORC Code and has significant experience relevant to the style of mineralisation and types of deposits under consideration. Mr Geldard consents to the inclusion of this information in the form and context of this announcement.
Further information Please contact Jim Malone +61 419 537 714 or [email protected]
North American Investor Relations Manager: Peter Barnes on +1 646 269 3073.
Cautionary note to U.S investors
The United States Securities and Exchange Commission limits disclosure for US reporting purposes to mineral deposits that a company can economically and legally extract or produce. We may use terms in the release such as “reserves”, “resources”, “geological”, “proven”, “probable”, “measured”, “indicated” or “inferred” which may not be consistent with the reserve definitions established by the SEC. US investors are urged to consider closely the disclosure in our annual reports. You can review and obtain copies of these filings from our website.
This announcement contains forward looking statements. These statements relate to future events, or our future financial performance. We have attempted to identify forward looking statements by terminology including “anticipates”, “believes”, “can”, “continue”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “should” or “will” or the negative of these terms or other comparable terminology. The statements are only predictions and involve known and unknown risks, uncertainties and other factors. The
Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000 Telephone: (08) 9325 5568, Facsimile (08) 93255574
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following factors, among others, could cause our actual results and performances to differ materially from the results and performance projected in, or implied by, the forward looking statements:
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Our history of losses and expectation of further losses.
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The effect of poor operating results on our company.
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Our ability to expand our operations in both new and existing prospects and our ability to develop or acquire new prospects.
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Or ability to develop new prospects and our performance in detecting and producing uranium for yellow cake.
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Our ability to raise capital.
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Our ability to fully utilize and retain new executives.
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Negative publicity surrounding our product.
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Trends in consumer tastes in energy.
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The impact of litigation.
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The impact of Federal, state, local or foreign government regulations.
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The effect of competition in our industry.
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Economic and political conditions generally.
Australian American Mining Corporation NL ABN 99 073 155 781 PO Box 1788, West Perth, WA, Australia, 6872 572 Hay Street, Perth, WA, Australia, 6000
Telephone: (08) 9325 5568, Facsimile (08) 93255574