AM Gold Inc. (TSX-V: AMG; Frankfurt: AMX) (“AM Gold” or the “Company”) is pleased to announce the first assay results of the 2011 exploration program at Red Mountain, Yukon Territory Canada. To date, a total of approximately 7,850 meters of core has been cut from 23 holes drilled east, west and north of the resource area. Assay results have been returned from the first 5 holes of the program, with partial results for Drill Hole ICE11045.
Drill Hole ICE11040 was collared approximately 100m south-southeast of ICE10039 (results previously announced November 22, 2010) and was drilled north-northeast at minus 50 degrees to test the extension of mineralization at the northern fringe of the Jethro Structure. Drill Hole ICE11041 was collared approximately 170m southeast of ICE10039 and was drilled north-northeast at minus 50 degrees, also at the northern fringe and away from the trend of mineralization along the Jethro Structure. Drill Hole ICE11042 was collared approximately 120m south of ICE10038 (results previously announced November 22, 2010) and was drilled to the north-northeast at minus 50 degrees to test mineralization south of the resource area. Drill Hole ICE11044 was collared approximately 170m east of ICE10039 and was drilled north-northeast at minus 55 degrees as an overshot to ICE11041 to test ground even further north of the Jethro structure. ICE11040, ICE11041 and ICE11042 indicate the extension of mineralization to a distance of approximately 200m beyond the east end of the resource area along the Jethro Trend and have quantified the extent and tenor of the dissemination of mineralization north and south of the trend. Hole ICE11044 was drilled to a distance several hundred meters north and off the strength of the trend with low grade mineralization over the entire length of the hole.
Drill Hole ICE11043 was collared approximately 250m northwest of ICE10028 (results previously announced September 28, 2010) and was drilled east at minus 50 degrees to test the new zone of mineralization discovered by ICE10037 (announced November 30, 2010) north of the Jethro Trend at the conclusion of the 2010 drill campaign. Hole ICE11045 was collard at the west end of the resource area approximately 90m west-northwest of ICE10028 and was drilled north-northeast at minus 50 degrees to extend the mineralization north and away from the Jethro Trend and to test the new zone of mineralization at depth. Assay results from the bottom 161m of ICE11045 are pending.
Assay results from the first 258m of ICE11045 have significantly extended gold mineralization to the north at the west end of the resource area. Assay results from Hole ICE11043 support last year's results from ICE10037 and the occurrence of a second zone of mineralization separate and distinct from the Jethro Zone. Several additional holes have subsequently been drilled north of the resource area with assay results expected over the coming weeks.
“We are very pleased to have extended mineralization at the east end of the resource with the first four holes of the program and look forward to later results on the eastward projection of the zone” said Vice President of Exploration, Neil Downey. “Confirmation of the discovery of a new zone north of the resource area has added great potential to the entire property position.”
All sample preparation and fire assaying work has been performed by Eco Tech Laboratory Limited (“Eco Tech”) in Kamloops, British Columbia. Eco Tech is an ISO 9001:2008 accredited laboratory and subsidiary of the Stewart Group of worldwide laboratories. Initial fire assay with atomic adsorption finish is completed for all samples. Those samples running greater than 1g/t Au are automatically reran. Those samples assaying in excess of 3g/t Au are reran using a gravimetric finish. In addition to the internal laboratory controls, the Company inserts two revolving standards in 3% of the samples, inserts blanks in 4% of the samples, and a duplicate sample is resplit every tenth sample. Results reported herein have been checked and have undergone quality control review.
About AM Gold Inc.
AM Gold Inc. is a publicly held resource company based in Vancouver, Canada. The Company is listed on the TSX Venture Exchange under the symbol “AMG” and is quoted on the Frankfurt Exchange under the symbol “AMX”. The Company is focused on creating shareholder value through the development of the Company’s gold and gold-copper projects in the Yukon and Peru while building a portfolio of quality pipeline projects in North and South America. The Company’s Red Mountain gold property is located in central Yukon Territory approximately 55 kilometres northwest of the community of Mayo in the Tintina Gold Belt. The Company’s Red Mountain gold property consists of approximately 3,600 hectares of contiguous quartz claims. 52 of such quartz claims (1,168 hectares) are held 80% by the Company with an option to acquire 100% ownership and are subject to a net smelter returns royalty and 131 quartz claims (2,430 hectares) are held 100% by the Company. AM Gold’s Pinaya gold-copper project is located approximately 775 kilometres southeast of the city of Lima, Peru in the Tintaya Gold Belt. The Company maintains 100% ownership of 35 mining concessions covering the 19,200 hectare Pinaya land position. AM Gold’s corporate offices are located Suite 605 – 369 Terminal Avenue, Vancouver, British Columbia, V6A 4C4 (phone: 604-646-0067).
Brian L. Cole, P. Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person and is independent of the Company within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
On behalf of AM Gold Inc.:
AM GOLD INC.
For further information on AM Gold, please contact Murray Caruth at 1-604-646-0067 or by email at , or visit AM Gold’s website at: http://amgold.ca.
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Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond AM Gold’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
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