AM Gold drills 487 m of 0.72 g/t Au at Red Mountain
Ticker Symbol: C:AMG
AM Gold drills 487 m of 0.72 g/t Au at Red Mountain
AM Gold Inc (C:AMG)
Shares Issued 41,273,351
Last Close 9/27/2010
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Tuesday September 28 2010 - News Release
Mr. John Fiorino reports
AM GOLD INC. INTERSECTS 487.4 METRES AT 0.72 G/T AU AT RED MOUNTAIN PROJECT-YUKON
AM Gold Inc. is providing results for the first drill hole of the 2010 program, ICE10028, which intersected 487.40 metres of gold mineralization averaging a grade of 0.72 gram per tonne gold (g/t Au) starting at surface to a depth of 487.40 metres on its 100-per-cent-owned Red Mountain gold property located in the Tintina gold belt, Yukon Territory, Canada. Hole ICE10028 was drilled to the west-southwest at minus eighty degrees to a depth of 526.57 metres with assay results pending for the last 39.17 metres of the hole.
The entire 12-hole 2010 diamond drill program has been focused on expanding the previously disclosed Inferred Resource of 542,000 troy ounces (23.6 million tonnes grading 0.7 g/t gold) announced on July 16, 2010.
The first two holes of the program, ICE10028 and ICE10029, were planned to test the vertical and longitudinal continuity of the mineralized zone to a target depth 500+ metres below surface, approximately 265 metres below the deepest previous drilling in the resource area. Assay results for the first 487.4 metres of hole ICE10028 are summarized in the table below:
Hole Number From (m) To (m) Width (m) Gold (g/t) Final Depth (m)
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ICE10028 0 487.40 487.40 0.72 526.57
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Including 48.50 149.90 101.40 1.41
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Including 87.50 102.00 14.50 4.23
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Including 446.00 475.05 29.05 1.25
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ICE10028 487.40 526.57 39.17 Pending 526.57
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Note: Reported Widths Are Drilled Thicknesses. True Widths Are Not Known
------------------------------------------------------------------------------------------------------------------------------------------------------Hole Number From (m) To (m) Width (m) Gold (g/t) Final Depth (m)---------------------------------------------------------------------------ICE10028 0 487.40 487.40 0.72 526.57---------------------------------------------------------------------------Including 48.50 149.90 101.40 1.41---------------------------------------------------------------------------Including 87.50 102.00 14.50 4.23---------------------------------------------------------------------------Including 446.00 475.05 29.05 1.25---------------------------------------------------------------------------ICE10028 487.40 526.57 39.17 Pending 526.57---------------------------------------------------------------------------Note: Reported Widths Are Drilled Thicknesses. True Widths Are Not Known---------------------------------------------------------------------------
All sample preparation and fire assaying work has been performed by Eco Tech Laboratory Limited in Kamloops, British Columbia. Eco Tech is an ISO 9001:2008 accredited laboratory and subsidiary of the Stewart Group of worldwide laboratories.
Upon completion of the deep drilling phase of the program, core drills began testing the lateral extension of the resource area along the Jethro Structure. Ten additional new holes were collared this season at no less than 50 m section step-outs with hole depths ranging between 170 m and 527 m.
Mineralization has been encountered in all holes drilled. Disseminations of sulphide minerals are predominant (0.5% to 1%,up to 5% locally), with accompanying zones of sulphide-bearing, multi-generational quartz veining being common. Arsenopyrite is the dominant sulphide mineral, followed by lesser amounts of pyrrhotite and chalcopyrite. Mineralization is predominantly hosted in quartz monzonite porphyry intrusive rock, but also in the encasing meta-sedimentary sandstone and quartzite rocks as well.
Assay results for the remainder of hole ICE10028 and all other drill holes (ICE10029 through ICE10039) remain pending. The turnaround on assay results has been slower than was expected for the program, due to the extraordinary amount of exploration activity in the Yukon and surrounding region this season.
Drilling operations were concluded and the camp demobilized during the third week of September with just over 4,000 m drilling completed. Two diamond drill rigs were winterized and left on the property to allow for the resumption of drilling operations approximately one month earlier for the 2011 campaign.
Brian L. Cole, P. Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.