NEWS OUTAM Gold Inc.: Clarification of Previously Issued Technical Disclosure
VANCOUVER, BRITISH COLUMBIA, Oct 19, 2010 (MARKETWIRE via COMTEX News Network) --
AMGOLD INC. (TSX VENTURE: AMG)(FRANKFURT: AMX) ("AM Gold" or the"Company") announces that, as a result of a review by the BritishColumbia Securities Commission, the Company is issuing this news releaseto revise and clarify certain of its previous technical disclosurecontained in previously issued news releases or posted on its website atwww.amgold.ca. In those instances where the Company has clarified orrevised previous disclosure, the Company advises readers not to rely onsuch statements as they may continue to be found in the public domain.
Inits news release of June 23, 2010 and in investor materials the Companyreported the mineral resource at its Red Mountain Property solely ascontained gold ounces. National Instrument 43-101 requires that resourceclassification, tonnage and grade always be reported. The Companyclarifies that the mineral resource at Red Mountain is all inferredclass, at 23.6 million tonnes grading 0.7g/t gold, containingapproximately 542,000 gross troy ounces of gold.
In response toBCSC comments, the Company is currently amending its "Red MountainTechnical Report" entitled "Independent Review of the Red Mountain GoldProperty, Mayo Mining District, Yukon Territory, Canada" prepared byBrian Cole, P. Geo and dated June 15, 2010, and expects to file itsamended report on SEDAR shortly. The Company does not expect anymaterial changes to the inferred resource due to the amendments, butwill make a further announcement if changes occur.
Similarly, theCompany's "Corporate Presentation", previously available on theCompany's website, was not compliant with NI 43-101 as the Companydisclosed gross metal quantities for nearby properties without citingthe resource or reserve classification, tonnage and grade. The Companyhas revised the same to comply with NI 43-101.
In investormaterials, the Company occasionally added inferred mineral resources toother classes of resource for its Pinaya Gold-Copper Project, and forRed Mountain and Pinaya combined. NI 43-101 requires that resource classalways be disclosed, classes reported separately, and inferredquantities not be added to other classes. The Company restates itsPinaya resource as first disclosed via the Company's news release datedSeptember 20, 2006. The Inferred Resource at Pinaya is estimated at12.72 million tonnes grading 0.41 g/t gold and 0.41% copper,approximately 168,000 ounces gold and 115,000,000 lbs. copper contained.The Indicated Resource at Pinaya is estimated at 29.13 million tonnesgrading 0.53 g/t gold and 0.42% copper, approximately 498,000 ouncesgold and 269,000,000 lbs of copper contained.
The Companycombined indicated and inferred Resources in disclosure made pursuant to(i) a Stockwatch eBlast of September 10, 2010 (the "September 2010Communication"), (ii) in its Corporate Presentation, previouslyavailable on the Company's website and (iii) in the Company's "InvestorFact Sheet" which was previously available on the Company's website.Such disclosure was not supported by NI 43-101 for the reason citedabove. The Company has revised its Corporate Presentation, Investor FactSheet and website to correct this.
In the Corporate Presentationand the Investor Fact Sheet the Company used a graphical NI 43-101branding logo with the words "RESOURCE ESTIMATE / 43-101 COMPLIANT". Theuse of such branding logo cannot confer compliance to the estimate, andno authority approves technical disclosure to be compliant withapplicable law. The company retracts such disclosure and has removed thesame from its website.
Stewart Jackson, P. Geol., is a QualifiedPerson under NI 43-101 and has reviewed and approved the technicaldisclosure contained in this news release.
ON BEHALF OF AM GOLD INC.
Gerald Aberle, President and COO
Thisdocument contains certain forward looking statements which involveknown and unknown risks, delays, and uncertainties not under theCompany's control which may cause actual results, performance orachievements of the Company to be materially different from the results,performance or achievements implied by these forward lookingstatements. We seek safe harbor.
Neither the TSX Venture Exchangenor its Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
Contacts: Progressive IR Consultants Corporation David Yeager 604-689-2881 david@amgold.ca www.amgold.ca
SOURCE: AM Gold Inc.
mailto:david@amgold.ca https://www.amgold.ca
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