AM increases estimate toooooooAM Gold's Red Mountain at 79.3Mt of 0.5 g/t Au inferred
Ticker Symbol: C:AMG
AM Gold's Red Mountain at 79.3Mt of 0.5 g/t Au inferred
AM Gold Inc (C:AMG)
Shares Issued 54,020,193
Last Close 12/1/2010
.65
Thursday December 02 2010 - News Release
Mr. John Fiorino reports
AM GOLD ANNOUNCES UPDATED 1.32 MILLION TROY OUNCE GOLD INFERRED RESOURCE ESTIMATE FOR RED MOUNTAIN PROPERTY
AM Gold Inc.'s updated National Instrument 43-101 report has been prepared for the Company by Brian Leslie Cole, P. Geo., who is a Qualified Person under National Instrument 43-101. The Report includes an updated inferred resource estimate of 79.3 million tonnes grading 0.5 g/t gold, approximately 1.32 million contained troy ounces of gold for the Red Mountain Property, Yukon Territory, Canada.
The updated inferred resource estimate for the Red Mountain Property has increased the previous resource estimate of approximately 542,000 contained troy ounces gold (23.6 million tons grading 0.7 g/t gold) previously announced June 16, 2010 in the same category.
Twenty-four inclined drill holes with a cumulative total of 6,609m were utilized in the resource estimation. They have an average depth of 275m, with the deepest being 527m. Dips ranged between -50 degrees and -80 degrees. The holes ranged in size from HTW to NQ and are spread across 22 section lines spaced at 25m or 50m intervals.
Gold mineralization is related to a porphyry intrusive body and where it is cut by a northwest trending fault zone, the Jethro Structure. The gold resource zone has a projected strike length of 700m, strikes 120 degrees, and dips steeply southwest. True width averages 165m (range 130m - 190m). Gold mineralization is associated with broad zones of disseminated sulphide with higher grade mineralization being associated with areas with steeply dipping sheeted sulphide-bearing quartz vein zones as well as multi-generational quartz veining, sometimes stockworked. The gold mineralization is hosted in quartz monzonite porphyry intrusive rock and also in the encasing meta-sedimentary sandstone and quartzite rocks as well, within the bounds of the Jethro Structure.
Mineralization has been verified to a depth of 980m elevation, or just a little shy of 500m below surface. The floor of the grade model was projected to an elevation of 1,200m under the original resource area and 1,300m elevation under the newer drilling to the southeast. The floor was lowered accordingly where deeper holes penetrated into mineralization at deeper depths.
The estimation method utilized was the constrained block model type. Resource was projected no more than 50m from the terminal section lines. In situations where drill holes collared and/or ended in mineralization above cut-off, the area of influence of a resource polygon was not extrapolated beyond 20m, except where supported by adjacent sections. The resource estimate was performed commensurate with CIM definitions (2005). The specific gravity utilized in the estimate was 2.55g/cm3 and the cut-off grade employed was 0.2g/t Au. A sensitivity analysis was performed on the resource estimate at various cut-off grades with the resulting tonnages and grades summarized in the following table: