NEWSOct 05, 2010 09:30 ET
AM Gold Inc. Upgrades Mineralization of Hole ICE10028 to 526.57 Metres at 0.75 g/t Au at Red Mountain Project-Yukon
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2010) -
Mr. John Fiorino reports:
AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AMGold" or the "Company") ASSAY RESULTS FOR THE REMAINING 39.17m OF HOLEICE10028 ARE NOW AVAILABLE. THE ENTIRE HOLE IS MINERALIZED AND CARRIESAN OVERALL TENOR OF 0.75 g/t AU OVER ITS ENTIRE LENGTH OF 526.57m,INCLUSIVE OF 1.83 g/t AU OVER 20.25m FROM NEAR THE BOTTOM OF THE HOLE.
Inaddition, the Company is pleased to announce the results from thesecond hole, ICE10029. This hole carries 451m at 0.58 g/t Au, inclusiveof 1.02 g/t Au over 38m and 0.81 g/t Au over 61m.
Aspreviously reported, Hole ICE10028 was drilled to the west-southwest atminus eighty degrees to a depth of 526.57m. Hole ICE10029 was drilled75m west of ICE10028 at the same azimuth and dip to a depth of 479.76m.
Theentire 12-hole 2010 diamond drill program has been focused on expandingthe previously disclosed Inferred Resource of 542,000 troy ounces (23.6million tonnes grading 0.7 g/t gold) announced on July 16, 2010.
Thefirst two holes of the program, ICE10028 and ICE10029, were planned totest the vertical and longitudinal continuity of the mineralized zoneto a target depth 500m below surface, approximately 265m below thedeepest previous drilling in the resource area.
Assay results for Holes ICE10028 and ICE10029 are summarized in the table below:
Allsample preparation and fire assaying work has been performed by EcoTech Laboratory Limited in Kamloops, British Columbia. Eco Tech is anISO 9001:2008 accredited laboratory and subsidiary of the Stewart Groupof worldwide laboratories.
Upon completion of the deepdrilling phase of the program, core drills began testing the lateralextension of the resource area along the Jethro Structure. Tenadditional new holes were collared this season at no less than 50msection step-outs with hole depths ranging between 170m and 527m.
Mineralizationhas been encountered in all holes drilled. Disseminations of sulphideminerals are predominant (0.5% to 1%,up to 5% locally), withaccompanying zones of sulphide-bearing, multi-generational quartzveining being common. Arsenopyrite is the dominant sulphide mineral,followed by lesser amounts of pyrrhotite and chalcopyrite.Mineralization is predominantly hosted in quartz monzonite porphyryintrusive rock, but also in the encasing meta-sedimentary sandstone andquartzite rocks as well.
Assay results for all otherdrill holes (ICE10030 through ICE10039) remain pending. The turnaroundon assay results has been slower than was expected for the program, dueto the extraordinary amount of exploration activity in the Yukon andsurrounding region this season.
Drilling operationswere concluded and the camp demobilized during the third week ofSeptember with just over 4,000m drilling completed. Two diamond drillrigs were winterized and left on the property to allow for theresumption of drilling operations approximately one month earlier forthe 2011 campaign.
Brian L Cole, P.Geo., hasreviewed the technical disclosure contained in this news release and isa Qualified Person within the meaning of National Instrument 43-101 -Standards of Disclosure for Mineral Projects.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
John Fiorino, CEO
AM GOLD INC.