American Consolidated Minerals Corp AMERF

RE: email from Mr. Fabbro

[rainhum]

Thanks Deet & Vanhope
I don't have any real info, but have my doubts that Lone Ranch is all that great. They stopped the drill program without finishing all the holes they were originally planning. Maybe I shouldn't read to much into that, but I don't feel it will be a big help to us short term.
I did speak to Al Fabbro a few weeks ago about Nevada and he was very pleased with what they were seeing and I could sense frustration in his voice at the market reaction to our activities. I definitely think we're oversold and are pushed far below where our results indicate.
I understand we will be drilling before the heavy snow and cold hits. That program should start in a couple of weeks. with the geophysical basically done. If we deserved to be beat up then it is for losing the two drill holes. That doesn't mean they were a bust just that the drill was to small to handle the hard type of rock mixed with fractured deposits. Also, that all the drill holes veered off from the targets due to rock conditions, meant we never got to the sweet spots we were aiming for. When they tried to "wedge" the drill to steer back on target they would lose the hole and that is why they allowed hole two to "drift" where it wanted to go rather than to the target.
We have a much heavier and bigger drill on site now which sould make the next two holes easier to zero in on. I understand we are also not going much below 700' as there appear to be very positive indications of shallow results.
What I didn't ask was whether this was an RC drill or a core. I will find out. Our Geo also was very excited with the progress and felt we were on the cusp of finding something very marketable. I will continue to accumulate at these levels as we are definitely in a gold bearing area and this next round of drilling should help to define our spring drill program. That spring program will need funding so I expect a new round of financing after the next set of results. They will be looking to prove to the market that the financing should be at levels much higher than this.
Let's watch the trading pattern over the next month and see how this behaves. If there is accumulation happening after the drill starts then this could become an opportunity.
jmo..................Rain