AM Gold has announced plans for the 2011 Spring-Summer exploration program at Red Mountain gold property. Kluane Drilling of Whitehorse, Yukon Territory signs a contract to perform the 6000m diamond drilling at AM Gold’s Red Mountain.
After the agreement completion, Kluane's two KD1000 skid-mounted, all-hydraulic drill rigs were equipped to operate in winter and left on the property to aid 2011 exploration to begin early. Depending on the weather, the company plans to continue mobilization of drilling in May.
The key focus of drilling is to expand the previously announced inferred 1.32m ounce of gold. The results from the 24 inclined drill holes along with cumulative total of 6,609m in resource estimation has been used to prepare updated NI 43-101 report. So far, gold mineralization has not been stopped in any lateral direction or depth of the inferred resource area. The strongest mineralization occurs along the extension at the east and west ends of inferred resource that strikes Jethro Structure.
The company plans to drill previously identified areas on the property, besides resource extension. The ICE10037 hole has been drilled well north and away from the resource area located along Jethro Trend, at the end of 2011 drilling. The company cuts 0.36 g/t gold over 233m in porphyry intrusive rock, 0.83 g/t gold over 5.48m at the bottom. ICE10037 is present between the current resource area and collar of the hole, so it was not incorporated in the resource estimate.
The company will release full, comprehensive survey mapping and rock sampling program to study the remaining of the property for additional targets. High definition Satellite imagery and DEM will enhance these activities and help in interpretations.