Jun. 22, 2011 (Marketwire Canada) --
VANCOUVER, BRITISH COLUMBIA -- AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce that it has substantially increased the Company's Yukon land position through the staking of 131 quartz claims covering approximately 2,400 hectares at Red Mountain. The recently acquired claims are contiguous to the 52 claims (1,168 hectares) that previously constituted the Red Mountain Property and are situated to the south and east of the Company's 1.32 million troy ounce gold inferred resource (79.3 million tonnes grading 0.52g/t gold) (see the Company's news release of December 2, 2010, a copy of which is available under the Company's SEDAR profile at www.sedar.com). AM Gold holds an 80% interest, with an option to acquire 100% ownership of the 52 claims that had previously comprised the entire Red Mountain Property. With the addition of the new claim block, AM Gold has more than tripled the size of its land package at Red Mountain to approximately 3,600 hectares in total.
AM Gold's 6,000 meter summer diamond drill program at Red Mountain commenced during the last week of May with the mobilization of the camp from Dawson City. Through an agreement reached at the conclusion of the 2010 season, Kluane Drilling of Whitehorse winterized and left two drill rigs on the property to facilitate an earlier start for the 2011 drill campaign. Despite poor spring weather conditions, the first hole of the 2011 program, Hole ICE11040, was collared on June 6th at the southeast end of the resource area at a 100m step-out from Hole ICE10039, the last hole of the 2010 program. On June 15th, the second Kluane drill collared Hole ICE11041 at a 100 meter step-out southeast of Hole ICE11040.
In addition to the Company's focus on the potential expansion of the inferred resources, the 2011 drill program has also been planned to explore several areas of interest across the property previously untested by drilling.
Dr. Stewart Jackson, P. Geol. and a director of the Company, is a qualified person (as such term is defined in National Instrument 43-101) and has reviewed and approved the technical disclosure contained in this news release.
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. The Company's Red Mountain gold property consists of approximately 3,600 hectares of contiguous quartz claims. 52 of such quartz claims (1,168 hectares) are held 80% by the Company with an option to acquire 100% ownership and are subject to a net smelter returns royalty and 131 quartz claims (approximately 2,400 hectares) are held 100% by the Company. 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 605 – 369 Terminal Avenue, Vancouver, British Columbia, V6A 4C4 (phone: 604-646-0067).
ON BEHALF OF AM GOLD INC.:
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.