Drilling to start, project generator at work!Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to announce that preparations for the upcoming 2010 drilling program at the Guadalupe Property (Zacatecas, Mexico) are complete.
The Company expects to commence drilling on its Guadalupe property on October 7, 2010. The Guadalupe property is located in one of Mexico's oldest mining districts, roughly 5 miles north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc.
The Company has budgeted for 2,500-meters of core drilling on the property and expects the program to last approximately two months. Six surface drilling locations have been prepared and are now drill-ready. All EJIDO, SEMARNAT and NOM 120 (local, state and federal) permits have been obtained. A warehouse has been conditioned for core storage and all necessary equipment has been purchased. The company has been advised that the drill rig will arrive on location on October 7, 2010 and drilling operations would start shortly after. Drilling operations will be performed by Tecmin Servicios S.A. de C.V.
"We are very excited with the pace of progress at our Guadalupe property. We consider that the drilling program we are about to embark on represents an important milestone in the growth of our company. We believe that each of our planned drill holes has the potential to intersect significant mineralization and provide important geological information," commented Mr. Johannes Petersen, Gold American's CEO. "The fully-funded 2,500-meters of drilling will greatly assist Gold American to discover the full potential of the Guadalupe project," added Mr. Petersen.
THE GUADALUPE PROPERTY
The Guadalupe property contains two historically significant mines and is located in one of Mexico's oldest mining districts, roughly 5 miles north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc. Roughly 6.8 miles to the southwest of Silver America's Guadalupe Property is the Juanicipio Joint Venture (JV) between MAG Silver Corp. (MAG) and Fresnillo plc, which is known as one of the world's highest grade undeveloped silver resources.
The Property contains greater than 20 known workings as well as two historic mines -- Santa Rita and San Antonio. Historic records containing references to the Santa Rita and San Antonio mines suggest that both mines were important and reached their height of production between 1910 and 1920 but were last in production in the 1980s. The property is completely surrounded by land controlled by Peñoles (either through Fresnillo or other subsidiaries and partners).
Highlight results from previous results include:
- 1.00 g/t Au and 946.9 g/t Ag over 1.1m (including 1.83 g/t Au and 1,800.0 g/t Ag over 0.5 m)
- 0.30 g/t Au and 622.0 g/t Ag from a mineralized dump
- 0.59 g/t Au and 330.0 g/t Ag over 0.7 m
- 5.35 g/t Au and 1,189.0 g/t Ag from a mineralized dump