Feb 7 2011
AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) has announced the commencement of the Company's 2011 exploration program at its 100% owned Pinaya Gold-Copper Project in southern Peru.
On January 28, 2011 the Company received approval of its application for an exploration permit for the La Porfia and Don Pedro 2000 concessions located in the Santa Lucia District, Lampa Province, Puno Department, Peru.
An aggressive exploration program has been planned for 2011 at Pinaya which will focus on resumption of drilling operations within the resource area as well as the exploration of encouraging porphyry-related targets at the south end of the property. These new targets were recently identified during a three-week field reconnaissance program undertaken in December, 2010.
AM Gold geologists will initiate a heavy mineral stream sediment sampling program mid-February at 60 drainage points covering approximately 6,000 hectares at the southern end of the Pinaya property. The results of the initial sampling program are anticipated to generate a second phase of 50 to 60 stream sediment samples to further narrow the scope of area for subsequent priority testing by soil sampling (2,500 to 3,000 samples). A portable XRF unit will be utilized to rapidly assess collected samples. Priority target areas will also be simultaneously covered by magnetic survey. The combination of soil sampling and magnetics have historically been very effective tools for defining drill targets at Pinaya.
Diamond drilling is scheduled to commence at the resource area by April 2011. Additional target drilling based on results of the soils sampling and geophysical programs south of the resource area could begin as early as May 2011. A total of up to 10,000 meters of drilling is planned for the year pending results of preliminary target evaluation programs at the southern end of the property.
Brian L. Cole, P.Geo., has reviewed the technical disclosure contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Source: AM Gold Inc.