AM Gold Inc.: Announces Progress on Red Mountain Exploration Program
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/18/11 -- AM Gold Inc. (TSX VENTURE: AMG)(FRANKFURT: AMX) ('AM Gold' or the 'Company') is pleased to announce an update of the progress on the Company's exploration program at Red Mountain, Yukon Territory Canada.
Drill Program
AM Gold has contracted with Kluane Drilling of Whitehorse, Yukon Territory to provide two diamond drill core rigs for the Company's 2011 drill program at Red Mountain. The first drill commenced drilling operations on drill hole ICE11040 at the east end of the resource area on June 10, 2011. The second drill collared drill hole ICE11041 on June 15, 2011, also at the east end of the resource area. To date, approximately 6,000 meters of core has been cut from 17 drill holes this season. Based on current drill productivity, the company expects to complete a total of 7,500 to 8,000 meters by the conclusion of the program in September.
Core from the program has been logged and split on site as the drilling has progressed. Samples have been sent to Eco Tech Laboratory Limited at Kamloops, British Columbia for fire assay. Due to the extraordinary amount of exploration activity in the Yukon and surrounding region, the turn around on assay results has been slower than was expected for the program. The Company is currently anticipating the announcement of the first assay results by the end of August.
Geophysical Surveys
AM Gold is also pleased to announce that it has entered into an agreement with Geotech Ltd. of Aurora, Ontario to conduct a helicopter-borne VTEM geophysical survey of the entire Red Mountain property. The Time Domain EM system is excellent for locating discrete conductive anomalies as well as mapping lateral and vertical variations in resistivity. The system also has a high-sensitivity cesium magnetometer for mapping geologic structure and lithology and a cesium magnetometer base station for diurnal correction. A total of 679 line kiolometres are planned to be flown in the late-August early-September time frame.
In addition, the Company has contracted with PhotoSat Information Ltd. of Vancouver, Canada to obtain a high resolution, satellite-derived digital terrain model for the entire property position. High-resolution topography has been demonstrated as a useful tool in outlining subtle structural trends important to the control of gold mineralization and will aid in developing better surface/attitude controls for the mineralization.
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.:
Gerald Aberle, President & COO
AM GOLD INC.
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.
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.
Contacts:
AM Gold Inc.
Murray Caruth
1-604-646-0067
1-604-692-0117 (FAX)
mcaruth@amgold.ca
www.amgold.ca