May 16, 2011 (Marketwire Canada) --
VANCOUVER, BRITISH COLUMBIA -- AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce that an updated technical report ("the Report") titled "Progress Report on the Pinaya Gold/Copper Property Caylloma and Lampa Provinces, Peru" has been prepared for the Company by Brian Leslie Cole, P. Geo., who is a Qualified Person under National Instrument 43-101 and a copy of the report will be filed under the Company's profile on SEDAR (www.sedar.com). The Report was commissioned by the Company to summarize scientific and technical information from 2007 - 2008 exploration programs which post-date the last report filed for the Pinaya Project in 2006.
Between 2007 and 2008, the Company completed approximately 25,180 meters diamond drilling in 68 holes; cut an additional 73 trenches providing approximately 11.25 kilometers new exposure; and expanded the geochemical soil survey to parts of the project area that had not been previously covered. The independent review of the scientific and technical information gathered subsequent to 2006 has established that:
- the Pinaya Project is a moderately advanced stage exploration project;
- a range of opportunities exist, not least due to the number of known mineralized occurrences and zones that have to date not fully been assessed by means of exploration diamond drilling;
- the resource area is open to further expansion with additional step-out drilling;
- the discovery of additional mineralized occurrences across the Project Area (the Antaña Este, Los Vientos and Saitocco Zones were found in 2007 and early 2008 (during the Company's last formal exploration programs); and
- outside the scope of the immediate resource area the property is significantly underexplored.
The Company's 2011 programs at the Pinaya Project have been planned to attempt to expand resources at the Gold Oxide Skarn Zone (GOSZ), Western Porphyry Zone (WPZ) and Northwest Porphyry Zone (NWPZ), test the postulated presence of cross-trending structures within those zones and to comprehensively test other zones of mineralization identified by previous soils sampling and trenching programs. In addition, the Company's current exploration effort has been designed to assess Pinaya on a much broader, property-wide scale. An airborne ZTEM geophysical survey covering the entire 19,200 hectare land position is currently underway, as are heavy mineral stream sediment and soils sampling programs covering approximately 6,000 hectares at the southern end of the property. Diamond drilling is scheduled to commence at the resource area by the third quarter of 2011. A total of up to 9,000 meters of drilling is planned for the year pending results of the ongoing soils sampling and geophysical programs. A new mineral resource estimate is currently being prepared for the Company and is expected to be completed in June of 2011.
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 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).
Brian L. Cole, P. Geo., has reviewed and approved the technical disclosure contained in this news release and is a Qualified Person and is independent of the Company within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
John Fiorino, CEO
AM GOLD INC.
Cautionary Statement Regarding "Forward-Looking" Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond AM Gold's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
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.