Dec 8 2010
American Paramount Gold Corp. (OTCBB: APGA) Further to the press release dated November 9th 2010, the Company reports that initial due diligence has commenced on the Kisita Gold Mine on which we have signed a letter of intent to acquire.
Kisita is a producing gold property four hours northwest of the capital city of Kampala in Uganda.
For the site visit the Company has sent its own geologist and has also retained Watts, Griffis and McOuat Limited ("WGM"), Canada's longest running independent firm of geological and mining consultants. WGM is to confirm the earlier reported existence of in excess of 20 gold structures. Of these structures approximately 8 kilometers have been physically uncovered. The Vendor has also now informed the Company that the previously reported 8 kilometers of gold structures uncovered now extend to over 12 kilometers. We also expect to confirm the existence of commercially viable deposits of alluvial gold, which would be capable of being produced in parallel with the hard rock mining operation currently ongoing.
At present the mining operations are concentrated on a 200 meter trench (which is 50 meters wide), which has been mined to a depth of some 75 meters. Gold continues to be present at that depth. According to existing reports, the trench is situated on a gold vein that is approximately 1 kilometer in length. This vein has been sampled throughout its entire length and the presence of gold remains consistent with the open trench.
Source: American Paramount Gold Corp.