AM Gold Inc:
Announces Red Mountain Exploration Program
AM Gold Inc. (TSX-V: AMG; Frankfurt:
AMX) (�AM Gold� or the �Company�) is pleased
to announce its 2011 Spring - Summer exploration
program at Red Mountain.
AM Gold has contracted with Kluane Drilling of Whitehorse, Yukon Territory to conduct a
6000m diamond drill core program at Red Mountain. Through an agreement reached
at the conclusion of the 2010 season, two of Kluane's
KD1000 skid-mounted, all-hydraulic drill rigs were winterized and left on the
property to facilitate an early start for the 2011 campaign. Mobilization of
the camp is planned for early-May with the resumption of drilling operations
anticipated between May 15 and June 1, depending on weather conditions.
The drill program has been planned with
primary focus on expanding the inferred 1.32 million ounce gold resource (79.3
million tonnes grading 0.52 g/t gold) that was
previously announced on December 2, 2010. The updated NI 43-101 report was
prepared utilizing the results from twenty-four inclined drill holes with a
cumulative total of 6,609m in the resource estimation. To date, drilling in and
around the inferred resource area has not closed gold mineralization in any
direction laterally or at depth, with the strongest mineralization open to
extension at the east and west ends of the inferred resource along strike of
the Jethro Structure and at depth.
In addition to resource extension, the
Company intends to drill other areas of interest on the property identified by
previous programs. At the conclusion of the 2011 drill program, Hole ICE10037
(previously announced November 30, 2010) was drilled well north and away from
the resource area situated along Jethro Trend.
Mineralization in the order of 233m grading 0.36g/t Au in porphyry intrusive
rock was intersected, with 0.83 g/t gold over 5.48m intersected at the bottom
of the hole. ICE10037 was not included in the resource estimate as the hole
could not be incorporated within the current geological model due to the
distance between the collar of the hole and the current resource area. ICE10037
is located in an area of the property previously untested by drilling and will
be a high priority for the 2011 campaign.
A detailed and comprehensive reconnaissance mapping and rock sampling program
will also be launched this season to investigate the remainder of the property
for additional drill targets. These activities will be supplemented by high
definition Satellite imagery and DEM which will aid in the interpretations.
About
AM Gold Inc.
AM Gold Inc. is a publicly held resource
company based in Vancouver, Canada. The Company is listed on the TSX Venture
Exchange under the symbol �AMG� and is quoted on the Frankfurt Exchange under
the symbol �AMX�. The Company is focused on creating shareholder value through
the development of the Company's flagship gold and gold-copper projects in the
Yukon and Peru while building a portfolio of quality pipeline projects in North
and South America. The Company's Red Mountain gold property is located in
central Yukon Territory approximately 55 kilometres
northwest of the community of Mayo in the Tintina
Gold Belt. AM Gold holds an 80% interest in Red Mountain with an option to
acquire 100% ownership of the 52 contiguous claims that constitute the property
and cover approximately 1,168 hectares. AM Gold's Pinaya
gold-copper project is located approximately 775 kilometres
southeast of the city of Lima, Peru in the Tintaya
Gold Belt. The Company maintains 100% ownership of 35 mining concessions
covering the 19,200 hectare Pinaya land position. AM
Gold�s corporate offices are located Suite 305 � 369 Terminal Avenue, Vancouver,
British Columbia, V6A 4C4 (phone: 604-646-0067).
On behalf of the Board:
"John Fiorino"
___________________
John Fiorino
CEO
AM GOLD INC.
For More Information
For further information on AM Gold,
please contact Murray Caruth at 1-604-646-0067 or by
email at mcaruth@amgold.ca, or visit AM Gold�s website at: http://www.amgold.ca.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.