Jan. 4, 2011 (Filing Services Canada) -- All American Gold Corp. (OSPR - OTCBB),is pleased to announce the completed signing of three agreements on gold exploration projects in the state of Nevada and the appointment of Brent Welke as Chief Executive Officer.
All American actively pursued these three properties for their proximity to historically successful producing mines, for the properties' favorable geology in relation to neighboring exploration projects and through the guidance of the Company's technical advisor, Richard Kern. Mr. Kern has extensive experience and tremendous success in the gold-rich state of Nevada. He and his team have discovered a nine million ounce gold-equivalent deposit at Eureka, Nevada and have been integral to the new discovery at Klondex Minerals Fire Creek property in central Nevada.
Brent Welke, the new Chief Executive Officer of All American Gold, has been an entrepreneur and lawyer for 36 years. Mr. Welke started his law practice in east Kentucky, and a portion of his practice was in mining and labor matters related thereto. He later went to work for the United States Army Corps of Engineers where he acquired surface and mineral rights in several states. He later worked for North American Coal Corporation, America's sixth largest coal company, where he was responsible for exploration land activities, negotiating land purchases and leases and maintaining North American's lease portfolio of 8,000 leases. He was also responsible for all environmental and permitting functions concerning land in his division, which mined over 20,000,000 tons per year. He recently sold a business selling high tech soil supplements in California. He is currently engaged in the practice of law and is licensed in Indiana and in the Federal Courts of Indiana, Kentucky and North Dakota.
Mr. Welke stated, "I am very excited for the opportunity to serve All American Gold Corp. as its Chief Executive Officer. All American has reached agreement on three excellent properties. The Goldfield West project specifically has already begun its drilling program and we are excited to see how the results will shape the next phase of the permitted 21 hole program. I believe we have excellent prospects to benefit our stockholders, having the team to bring these properties to production and/or joint venture, dependent on drilling results. Our plan is to continue to source new high quality properties with similarly strong geology."
The properties which the company has reached agreement on are as follows:
The Goldfield West property is an advanced exploration property with defined targets and a defined resource and is comprised of 105 unpatented mining claims covering a total of 850 hectares or 2100 acres. It is approximately 3.5 hours Northwest of Las Vegas, Nevada by car and approximately 3 miles west of the town of Goldfield. It is adjacent to the south of International Minerals (IMZ) Gemfield property containing a reported resource of 2.5 million ounces of gold, and is easily accessed via well graded dirt roads. The Goldfield district has historic production figures totaling more than 4 million ounces of gold.
Geologically, the Goldfield West property encompasses an area of Tertiary volcanic and volcanoclastic rocks. The USGS (US Geological Survey) and several mineral exploration companies hypothesize that the western edge of a caldera rim runs through the property. Historic work conducted by Bear Creek, Placer Amex, U.S. Borax, North Mining and Bonaventure Enterprises has led to the completion of 138 drill holes. The data compiled from drilling results and a wealth of information gathered through geological mapping, geochemical sampling and geophysical surveys have identified three distinct targets over a strike length of 3.5 miles. Previous results have tended to confirm the existence of a gold-bearing hydrothermal system associated with the argillization and silification of host rocks proximal to feeder structures.
All American believes that the property has the potential to host a total resource in excess of 1 million ounces of gold in these Tertiary age volcanic and volcanoclastic rocks. Surface samples collected from old workings and outcrops have exceeded 15 g/t (0.48 oz/t.) Drilling has commenced on both the Nevada Eagle (northern) site and the South targets. These two holes of a permitted 21 hole program consist of RC drilling to a depth of approximately 700 feet and then core drilling to a depth of 1200 to 1500 feet'. Results from these first 2 deep core holes (1001 and 1002) displayed thick sections of highly anomalous gold with 1001 having 465' of +0.1 g/t (+0.003 oz/t) gold and 1002 having 385' of the same. The best 5 foot sample was 0.477 g/t (0.015 oz/t) gold in 1001 and 1.450 g/t (0.046 oz/t) gold in 1002. Gold is related to three separate horizons in 1001 which appear to be more permeable hosts. The basal section of the volcanics is one of these anomalous horizons and verifies the theory of a good host at the base of the volcanics. Geologist, Richard Kern, All American's technical advisor states, "These results are a verification of the Gemfield model. We have a large cloud of low-grade gold and we need to vector into the higher grade portion of the system. Drilling more deep holes, concentrating on the structures and dikes found with the geophysics is the next step at Nevada Eagle."
The Belleville Project is approximately 175 miles south-southeast of Reno, Nevada and approximately 250 miles northwest of Las Vegas, Nevada. Nearby recent and historic mines include the Candelaria Silver Mine (ten miles to the east), and the Marietta Mine (six miles to the west). Both of these past producing mines lie within the Walker Lane structural and mineral belt, as does the Belleville project.
Exposed rocks at Belleville are meta-sediments and meta-volcanics of the Triassic Excelsior formation. Also exposed on the property is a granite intrusion of late Mesozoic age. Several old prospect pits and adits are developed along two semi-parallel shears in the Excelsior package. The shears contain quartz veins, stockworks and varying amounts of iron and copper minerals. Rock chip samples from these workings revealed as much as 53 parts per million (ppm) gold.
A Gradient IP-Resistivity and Ground Magnetic Survey were commissioned of the Belleville project in September 2009 by Fritz Geophysics. Three, reverse circulation-rotary (RCR) exploration drill holes from one drill site in the fall of 2009 were also commissioned to test the possible continuation of mineralized structures in the vicinity of the range front.
Three potential drilling targets have been identified at the Belleville project. One is the set of gold bearing shear zones described above. The second is a geophysical anomaly indicating the apparent extension of the mineralized shears under pediment. A third target occurs at the intersection of the mineralized structures with a major lithologic contact. Road building and a drill program has been set for 2011.
The property is located in Lander County, Nevada in Sections 25, 26, 35 and 36, Township 23 North, Range 44 East, and Sections 19, 30 and 31, Township 23 North, Range 45 East. The Iowa Canyon property consists of 165 unpatented mining claims covering about 5 square miles. This property sits on the Battle Mountain Eureka Trend that has historically produced more than 23 million ounces of gold. The property sits approximately 30 miles southeast of the Cortez Hills deposit (5.5 million ounce deposit in 2003) and 20 miles southwest of the Cove-McCoy mine (a subsidiary of Kinross Gold Corporation) at the south end of the Carico Lake Valley and is easily accessible via paved highways, gravel roads and dirt roads.
The Iowa Canyon project represents a high-quality exploration opportunity having untested potential within several gold and silver bearing targets. The area has documented historic production of fluorite, turquoise and placer gold. Exploration for barite, molybdenum and disseminated gold is relatively new, occurring within the past 20 years. Recent exploration efforts have discovered multiple episodes of precious metals mineralization over a district-wide scale (nine square miles). Gold is hosted in a variety of rock types including silicified Tertiary volcanic and volcanoclastic sediments, quartz veins, quartz stockwork zones, carbon-rich Paleozoic sediments, and as jasperoid replacements of lower plate calcareous sediments. The host rocks are structurally prepared, permeable and\or adjacent to dikes and sills that acted as conduits for mineralizing fluids. Late stage mineralization in the form of gold-silver-arsenic-antimony-mercury is zoned outward from a porphyritic quartz monzonite stock of late Cretaceous age. The stock is responsible for early stage molybdenum-tungsten-fluorite-gold mineralization. Gold and molybdenum are also disseminated within possible Eocene age felsic to mafic dikes and sills associated with northeast and northwest trending faults.
Previous work conducted in the 1980's and 90's by Echo Bay, Hemlo Gold, North Mining, Rio Algom and Carlin Mining indentified gold and silver bearing zones within upper and lower plate sediments and Tertiary tuffs and conglomerates. Sampling by the above groups produced up to 5.6 g/t (0.179 oz/t) gold from select samples of jasperoid developed within lower plate carbonates and 550 g/t (17.6 oz/t) silver from gossanous zones within upper plate siliciclastics. Lower plate rocks believed to be Hanson Creek Formation have been encountered in both outcrop and in drilling on the north, east and west portions of the project.
About All American Gold:
All American Gold Corporation is a precious mineral exploration company focused on the acquisition and ongoing exploration of mineral property holdings in the United States. All American has various existing holdings in the gold-rich state of Nevada and intends to seek out new opportunities through its experienced and proven geological team. Additional information concerning All American's projects can be found on the company's website at www.allamericangoldcorp.com
For more information, contact our investor relations:
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Source: All American Gold Corp. (OTC - OSPR.OB) www.allamericangoldcorp.com
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