AM Gold Inc.
TSX VENTURE : AMG
FRANKFURT : AMX

AM Gold Inc.

November 16, 2010 09:31 ET

AM Gold Extends Mineralization 250 Meters to the Southeast of Red Mountain Resource Area

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2010) - AM Gold Inc. (TSX VENTURE:AMG)(FRANKFURT:AMX) ("AM Gold" or the "Company") is pleased to announce additional results from its wholly owned Red Mountain Property in central Yukon Territory, Canada. Assay results have been returned for diamond drill holes ICE10034, ICE10035 and ICE10036, which were all drilled to test the extension of the mineralization to the east of the resource area, generally along the Jethro Trend. 

Hole ICE10034 was collared approximately 250 m east-southeast of Hole ICE10028 (previously announced September 28 and October 5, 2010) and drilled on a southwest azimuth at minus 60 degrees to a depth of approximately 412 m to test the extension of the mineralization along the trend southeast of the resource area.

Hole ICE10035 was also started from the collar location of Hole ICE10034 and drilled to the north-northeast at minus 55 degrees to a depth of approximately 305 m to test the extension of mineralization into meta-sediments north and away from the Jethro Trend.

Hole ICE10036 was collared approximately150 m east-southeast of ICE10028 and was drilled on a north-northeast azimuth at minus 55 degrees. The hole was designed to drill to a depth of 450 m to extend the mineralization to the east of the resource area along the Jethro Trend and to test for the extension of mineralization in the intrusive to the northeast of the resource area. The hole was lost in a fault at a depth of 216 m, just short of the intrusive target.

Detailed assay results for ICE10034, ICE10035 and ICE10036 are summarized in the table below:

Hole Number From (m) To (m) Width (m) Gold (g/t)
ICE10034 19.5 293 273.5 .37
Including 75.4 135.9 60.5 .57
And 365.5 384.7 19.2 .50
ICE10035 10.5 219.5 209 .21
Including 98.5 147 48.5 .34
ICE10036 118 215.6 97.6 .39
Including 165.2 199 33.8 .51
Note: Reported Widths Are Drilled Thicknesses. True Widths Are Not Known

All sample preparation and fire assaying work has been performed by Eco Tech Laboratory Limited in Kamloops, British Columbia. Eco Tech is an ISO 9001:2008 accredited laboratory and subsidiary of the Stewart Group of worldwide laboratories.

The results from holes ICE10034, ICE10035 and ICE10036 appear to extend the mineralization along the Jethro Trend a distance of approximately 175 m to the southeast of the previously disclosed Inferred Resource of 542,000 troy ounces (23.6 million tonnes grading 0.7 g/t gold) announced on June 16, 2010. Two additional diamond drill holes, Hole 05-24 and Hole 05-25, were drilled during the 2005 summer campaign and are located approximately 75 m further to the southeast of ICE10034, or approximately 250 m southeast of the resource area.

The higher grade intercepts from Hole 05-24 and Hole 05-25 were previously announced August 16, 2005 and are restated in terms of the broader intercepts in the following table: 

Hole Number From (m) To (m) Width (m) Gold (g/t)
*05-24 5.2 167.9 162.8 .48
*Including 147.0 167.9 20.9 .60
*05-25 3.6 145.3 141.6 .49
*Including 65 145.3 80.2 .64
*Including 124.3 145.3 21 1.04
* Previously Reported August 16, 2005
Note: Reported Widths Are Drilled Thicknesses. True Widths Are Not Known

The geology in the holes drilled at the east end of the resource area indicate the transition from a primarily massive porphyry intrusive stock to predominantly meta-sedimentary rock intercalated with porphyry diking. Within the bounds of the Jethro Structure, lithology does not appear to influence the distribution of the gold mineralization. The character of the mineralization remains similar to that in the west in monzonite porphyry intrusive rock, that being disseminations of sulphide minerals are predominant (0.5% to 1%,up to 5% locally), with accompanying zones of sulphide-bearing, multi-generational quartz veining being common. Arsenopyrite is the dominant sulphide mineral, followed by lesser amounts of pyrrhotite and chalcopyrite.

Assay results from the remaining three holes of the 2010 program are expected within the next two weeks. 

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.

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.

This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbor.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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