AM Gold Inc. (TSX-V: AMG; Frankfurt: AMX) (“AM Gold” or the “Company”) is pleased to announce that the third tranche of assay results received to date in 2011 continues to expand the extent of wide, higher grade intervals surrounded by a halo of widespread, continuous mineralization at Red Mountain, Yukon Territory, Canada. The results now demonstrate the area of gold mineralization, including the previous inferred resource estimate extends at least 500m in width, and at least 900m in length. The zone is open at depth as well as laterally in all directions. For details on the inferred resource estimate see the Company’s news release dated December 2, 2010, a copy of which is available at www.sedar.com
“We have more than tripled the area of the mineralized footprint previously identified in 2010. We recently contracted Geotech and completed a VTEM geophysics to further assist us in defining the potential scope and size of the Red Mountain Project. We are in the process of data interpretation to further assist us in understanding potential higher grade zones, potential control structures and the scope and size of the Red Mountain project. Based on current assays from AM Gold's 2011 drill season we have extended the higher grade Jethro zone to the West and demonstrated greater than a 300% increase from the 2010 mineralized area footprint. Red Mountain has some control structures that are yielding higher grade zones but ICE Hole 11056 has demonstrated there is a very broad mineralized area not limited to the intrusive as the metasediments are also carrying broad intercepts of gold mineralization. To date our focus has been on resource expansion, the next step will be to identify higher grade zones as we continue to focus on resource growth,” stated Mr Neil Downey, VP of Exploration for AM Gold.
Assay results for six drill holes located at the western end of the mineralized zone are summarized in the table below, and include Drill Holes ICE11048 (partially reported earlier), ICE11049, ICE11053, ICE11055, ICE11056, and ICE11058:
The 2011 drill program consists of a total of 23 core holes totaling 7,850 m, drilled east, west, and north of the 2010 inferred resource area. Of this total, an additional nine holes await assays and will be reported when results are received.
Assay results of the first eight holes and partial results for the ninth were previously reported in Press Releases dated September 12 and October 3, 2011. Assay results are presented here for the remainder of ICE11048 plus five additional holes: ICE11049, ICE11053, ICE11055, ICE11056, and ICE11058. These six holes are all located at the western end of the mineralized zone.
Hole ICE11048 is the northern-most hole at the western end of the inferred resource area. Assays reported for the remaining 250m of the hole now broaden the width of gold mineralization from the previous reported 450m to over 500m.
Hole ICE11056 is a 100m step-out at the western end of the inferred resource area. Unlike the majority of the other holes in the area, this hole was composed almost exclusively of metasedimentary rock, rather than felsic intrusive or a mix of the two. The hole returned a mineralized intersection of 245m, re-affirming that mineralization is not constrained solely to the intrusive lithologies.
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 rerun. Those samples assaying in excess of 3g/t Au are rerun 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.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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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