Mar. 17, 2011 (Marketwire Canada) --
VANCOUVER, BRITISH COLUMBIA -- AM Gold Inc. (TSX VENTURE: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 0.36 g/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, CEO
AM GOLD INC.
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.
AM Gold Inc.