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Acero-Martin Exploration Inc. (TSX-V: AMG)

       Acero-Martin Exploration Inc. is a Canadian-based mineral exploration mining company listed on the TSX Venture Exchange (ticker symbol AMG) (US Listing: ACERF.PK). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders within Acero-Martin's Pinaya gold-copper deposit in Peru and Red Mountain gold project within the Tintina Gold Belt, Yukon. Acero-Martin's Pinaya gold project is particularly appealing from an investor standpoint as the Pinaya deposit contains a NI 43-101 compliant 666,000 ounces of gold and 385 million pounds of copper resource and also possesses near term open pit mine potential at the past producing Pinaya open pit mine where ~200,000 ounces gold of the 666,000 ounce gold resource is readily available for the taking from the pit area. The risk-reward characteristics are highly advantageous for investors establishing a long position in AMG.V as the current in-situ gold equivalent resource valuation is one of the most undervalued in the industry and Acero-Martin will be executing a plan to take Pinaya to the next level.

1) Pinaya Gold-Copper Project, Peru - 100% owned

The 3D geological model, seen to the left, portrays the deposit at Acero-Martin's Pinaya gold-copper project. This model and the 2006 NI 43-101 report that defined the 666,000 ounces of gold and 385 million pounds of copper resource was based on the first 70 holes drilled. Since then 93 additional holes have been drilled totaling 163 holes (representing well over 40,000m of drilling) and thus the resource estimate if done now would likely be significantly larger; many of the holes were infill and results of the last 93 holes indicate greater potential. A couple of the last holes that were drilled to greater depth (~800+m) than earlier holes and these were still in mineralization as they went down at depth. One satellite drill hole was drilled in the last round of drilling and intercepted values to depth, a great number of satellite IP targets and geochemistry targets are yet to be tested. Since acquiring the project Acero-Martin has invested ~US$12M in exploration to derive the results to date. Pinaya is a large property consisting of 28 contiguous mineral concessions totalling an area of ~14,300 hectares ripe with untested potential.

The Potential

The Pinaya property was acquired by Acero-Martin in 2004 after completing a search for a very large bulk tonnage gold-copper situation in the porphyry belts of Peru. The Pinaya property was identified, acquired (purchased from the town for US$3M over 3 years), and expanded based on an old gold pit area that was being mined by a few dozen hand miners that were making a living off the gold outcropping on the surface. Acero-Martin drilled out to expand the gold operation around the old pit and it soon became apparent that the gold portion was not the entire picture and Pinaya was turning into a large copper and gold situation. Drilling continued and it was realized Pinaya had the potential for being a couple billion tonnes.

The potential at Pinaya is immense. When asked to describe the potential by Mining MarketWatch Journal Acero-Martin's President and CEO, Dr. Stewart Jackson, P.Geo., said "Pinaya is a Collahuasi lookalike in its early days. The Collahuasi property is in Chili and was drilled out by Falconbridge (now Xstrata) and one of our senior advisors for Acero-Martin was involved at the time when it was being developed. It started off looking very similar to the Pinaya in its current status and eventually and ultimately ended up being over 2 billion tonnes of over 1% copper plus gold." Dr. Jackson explained how the upside potential on Pinaya is a very large bulk tonnage target. The intermediate size potential is for somewhere in the order of 200-500M tonnes which he called ‘moderate size’ somewhere in the order of .3 to .5% copper and 1-2 grams gold.

Taking Pinaya to the next level

Much of the drilling after the 2006 resource estimate NI 43-101 report focused on infill drilling however now the impetuous for Acero-Martin would be to step out from the resource and try to scope the whole potential of the large land holding to see if the two billion tonne type target is contained within the property. Acero-Martin will nurture along the exploration and obtain a new incoming partner to put in major joint venture funding so that Pinaya can reach its multi-billion potential, however Dr. Jackson painted the scene for how Acero-Martin could employ on its own (or with a partner) one of two smaller scale versions of Pinaya's potential by putting the property into small scale mining operation now on its defined resource.

1) AMG.V could mine a zone that is over 1% copper with good gold that is 100+m in thickness; there is a portion of the property there that would allow AMG.V to potentially mine 20,000,000+ tonnes of higher grade copper with gold.

or

2) a smaller version still would see AMG.V going after the gold pit itself; start mining the gold in the old pit area -- if a circle is drawn around the pit about 200,000 ounces of the 666,0000 ounce gold resource is right in the immediate vicinity of that pit area, AMG.V could put in a small operation there. AMG.V could put it in a very tiny mill for tests and then expand it up to 200+TPD. Mining MarketWatch Journal calculates such a gold operation would cost a nominal amount to initiate and then upgraded for maybe US$10M - $12M and maybe return US$20,000,000 in net (after repaying costs). The time frame would be short and the net would come back in a two to three year time period.

Salient project insight

Figure 7. AMG.V main core shed, kitchen, living, health complex at Pinaya

Infrastructure

Acero-Martin possesses quality infrastructure at Pinaya including a core shed facility, a camp, and kitchen facility for operation of the project. Access is extremely good, water is on the property, power is a very short distance to the west ~7km and may be connected at nominal cost.

Community Relations and Surface Rights

Acero-Martin has acquired surface rights on key concessions. Surface access is encouraged as the land Pinaya occupies is uninhabited upland grass terrain at high altitude where all of the surface area is owned by the local grazers and people that work in the local villages. Acero-Martin purchased the mineral rights in 2004 from the township and the entire community owned all of the surface rights. Acero-Martin has acquired key surface rights around the gold pit area. The area is essentially a grazing economy and jobs in a mine would be very welcome so the communities are all positively inclined towards a mine. There is no relocation of houses as most of the people live in the villages and the grazing is done out all over the land which is open and unfenced and the shepherds go along with the animals, so its not a matter of relocating somebody’s homestead, it’s a matter of relocating grazing or penning off the work area to keep the free range llamas and alpacas out. Acero-Martin has good community relations; assisting in the building a new school, purchasing new breeding animals for local farmers, and providing employment to locals.

2) Red Mountain Gold Project, Yukon

 
A review of the past drill results reveals several holes that were exceptional, including 125m grading 1.14g/t gold and 105m grading 1.07g/t gold -- clearly massive mineralization on the property.

Dr. Jackson is an accomplished mining professional with 49 years of experience in the exploration and development of mineral deposits and in the management of public companies. He has been involved in multiple mineral discoveries and evaluations.
 
Most recently Dr. Jackson has been involved in the acquisition and delineation of one of the most significant discoveries of modern mining history; a major uranium, molybdenum, nickel and vanadium resource in Sweden on properties held by Continental Precious Minerals Inc. These properties contain a significant uranium resource exceeding 1.1 billion pounds of uranium oxide (U3O8), 17 billion pounds of vanadium (V2O5), 1.5 billion pounds of molybdenum (Mo) and 2.3 billion pounds of nickel (Ni), with drilling continuing to expand the resource.
 
Prior to that he was instrumental in the advancement of the Turnagain nickel sulphide deposit of northern British Columbia, Canada, held by Hard Creek Nickel Corporation, from a prospect to the billion tonne resource category.
 
While involved with his initial public company, Crown Resource Corporation in the 1980’s, multiple discoveries of gold were made in Washington State, USA; totalling to date in the order of 4.5 million ounces; continuing to be produced by Kinross Gold Corporation.
 
In the 1970’s he recognized the potential of the enormous Red Dog zinc-lead deposits in western Alaska, and was instrumental in their exploration and development by Cominco American Incorporated (now Teck-Cominco). Red Dog today produces over 10% of the world production of zinc from this long-lived zinc resource field.
 
Subsequently, he was Exploration Manager for Houston Oil and Minerals Corporation during the discovery and development of the Manhattan, South McCoy and Borealis gold deposits of Nevada, USA.
 
Dr. Jackson has authored and co-authored a number of scientific publications, is a member of several scientific and professional organizations, and holds a Professional Geologist (P. Geol.) Registration in the Province of Alberta, Canada. He holds a Bachelor of Science degree in Geology from the University of Western Ontario, a Master of Science degree in Stratigraphy and Mineral Deposits from the University of Toronto, and a Ph.D in Stratigraphy and Economic Geology from the University of Alberta.
 

Mr. Ralph Stricklen, B.Sc. (Met. Eng.), Chief Operating Officer
Mr. Stricklen has more than 30 years of mine development and project management experience, 12 of which were spent in Peru. Most recently, he was the project manager for a smelter rationalization program at Inco Limited’s Thompson Smelter in Manitoba, Canada. He has held similar project management and mine development positions at other major mining companies including HudBay Minerals Inc. and Southern Peru Copper. Mr. Stricklen brings extensive development, process engineering and operation expertise to the Acero-Martin.

  
Mr. Wan Jung, CGA, Chief Financial Officer
Mr. Jung is a Certified General Accountant with over 30 years experience. He was the former Director of Finance with NIKE Canada Ltd., and presently serves as Chief Financial Officer and Director for Great Bear Uranium Corp. and Vice President Finance for Avigilon Corporation, a company that manufactures and markets high definition surveillance systems.

Mr. Michael Scholz, B.Com. LL.B., Chairman and Director
Mr. Scholz received both a Bachelor of Commerce and a Bachelor of Law from the University of British Columbia. From 1978 to 2001, Michael was Solicitor and Senior Partner of the law firm Alexander Holburn. He is currently Chief Financial Officer and Director for CMC Metals Ltd., a Director and Chairman of Avcorp Industries Inc., a Director of Uniserve Communications and, from 2001 to 2004, was President, Vice-Chair and Director of Great Canadian Gaming Corporation. Mr. Scholz provides a strong, independent voice focusing Management and the Board on key decisions and strategy.

Mr. Jack Bal, Director
Mr. Jack Bal is a business executive, with over 11 years of experience in the resource industry and public markets. His contacts in several international countries known for precious metal mining are invaluable in identifying potential property acquisitions for CMC. Mr. Bal was the founding member and Vice President of Apparo Software Inc., past Director of Saintstar Ventures Inc. and is currently a Director of Eaglestar Ventures Inc. and President of Journey Resources Corp.

Mr. Don Wedman., Director
Mr. Don Wedman received a Bachelor of Science, Mining Engineer, at the University of Alberta. He has over 25 years experience in mine feasibility assessments, development, and environmental permitting. His project management skills are an asset in moving exploration properties into the development/production stage. From 1981 to 1997 he was a Senior Engineer with Alberta Power Limited (ATCO Power) managing fuel contracts, contract negotiations, and conducting mine resource assessments. In 1998 he joined Geographic Dynamics Corp. as the General Manager, for project managing environmental and ecological resource assessment studies. From 2003 to 2005 he also was the Vice President of Coremetric Development Corp., assisting in the development of the first iron quarry in Alberta. He has served on a number of volunteer boards including APEGGA Career Committee (Chairman), and the Edmonton Branch of CIM.

Mr. Winston Wong, Director
Mr. Wong, a veteran banker has over 15 years experience in lending to small businesses. He was Manager, China Desk for Standard Chartered Bank, Hong Kong in 1981 and has been dealing with Chinese businesses since. After immigrated to Canada in 1986, he has been involved in many businesses in real estate development, retail, tourism and financial service industry. He has 15 years experience in serving as director of public companies and is well versed in the Chinese community as well as the local business community.

Mr. Peter MacLean, MBA, Director
Mr. MacLean has over 20 years of broad based global experience developing and managing public companies, international business units and public sector organizations. He has developed and implemented growth and profit strategies in the Technology, Manufacturing, Financial Services and Resource industries utilizing his expertise in business development, operations management, finance and strategic execution. Most recently, Mr. MacLean founded and developed Abode Mortgage Corporation into one of Canada’s leading new residential mortgage lenders. Prior to founding Abode, he co-founded and held senior executive positions in several knowledge-based companies that commercialized patented technologies in the industrial inspection and electronics payment markets. Following the Canada-US Free Trade Agreement, Mr. MacLean directed the BC Government’s US Trade Division and California Office in Orange County. Earlier in his career, he worked for the Japanese trading house, Mitsui & Co. in commodity brokerage and energy project development.

 
Mr. MacLean holds a B.A in Economics from the University of British Columbia and a Masters of Business Administration from Pepperdine University and Simon Fraser University.

 
As a former member of Canada’s National Rugby Team and the Vancouver Whitecaps and active member in his community, Mr. MacLean has personally experienced the power of teamwork to bridge cultures, build and sustain communities and empower individuals to work cooperatively in the pursuit of excellence. He is currently a partner of BTL Energy Corporation, a venture firm specializing in growth strategies for alternative energy companies, a Member of the Board of the Jack Bell Foundation (Rideshare) and he is active in a variety of local sports organizations.

For more information contact Acero Martin's head office at: Ph 1.877.646.0067
 

E-mail: info@acero-martin.com   Company's web site: www.aceromartinexp.com

SEDAR Filings: URL