AM Gold's Red Mountain at 542,000 oz Au inferred
2010-06-16 15:24 ET - News Release
Mr. Stewart Jackson reports
AM GOLD RELEASES INFERRED GOLD RESOURCE, RED MOUNTAIN PROJECT, YUKON TERRITORY, CANADA
An updated NI 43-101 report has been prepared for AM Gold Inc. by Brian Leslie Cole, P.Geo., who is a Qualified Person under National Instrument 43-101, which includes an estimated Inferred Resource of 23.6 million tonnes grading 0.7g/t gold , approximately 542,000 troy ounces contained gold, for the Red Mountain property, Yukon Territory, Canada.
Results from nine inclined drill holes with a cumulative total of 1,917m were utilized in the resource estimation. Several drill holes were collared and/or terminated in significant mineralization, indicating that the mineralized target is not closed off in any direction laterally, or to depth.
The holes average 200m in depth, with the deepest being 331m. They are spread across eight section-lines spaced at 25m intervals. Drill core size ranges from HQ to NQ. The gold resource zone has a strike length of 250m, strikes 120 degrees , and dips steeply southwest. True width is 125m (range 100m - 175m). Gold mineralization is associated with steeply dipping sheeted sulphide-bearing quartz veins primarily hosted in quartz monzonite porphyry, but mineralization of lower, but still significant, tenor bleeds out into the contact hornfelsed metasediments.
The Resource Estimate for Red Mountain was completed in May 2010. The calculation method utilized was the sectional polygon type. The resource estimate was conducted commensurate with CIM (2005) definitions. Cut-off employed was 0.2g/t Au and the specific gravity utilized was 2.55g/cm3.
The resource was projected 25m and 50m from the terminal section lines respectively. In situations where drill holes were collared and/or ended in mineralization above cut-off, the area of influence of a resource polygon was not extrapolated beyond 25m.
Deposits of this type tend to have more vertical continuity than lateral. Hence, on the basis of the deepest hole, resource polygons were extrapolated to an elevation depth of 1,200m asl, or alternatively 275m on average below surface across the section suite.
In order to maximize data from previous work, the Company plans to fire assay those portions of the previously drilled cores that were not assayed during the earlier programs. Fire assaying will additionally be carried out to refine gold values for all eight of the 2003 core holes which were largely evaluated using ICP geochemical gold analyses. This will be done in conjunction with the start-up of the drilling program scheduled for early July 2010.
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