American Goldfields Inc.
OTC Bulletin Board : AGFL

American Goldfields Inc.

October 24, 2005 16:00 ET

American Goldfields Announces Drill Program Underway on Hercules

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2005) - American Goldfields Inc. (OTCBB:AGFL) announced today its drill program is underway on the Hercules ("Hercules") project in Nevada.

The Hercules is located in southern Lyon County, approximately 40 km southwest of Reno, and 11 km outside of Dayton. The Hercules is 16 km from the Comstock Lode and 24 km from the Talapoosa Mine. The property consists of 40 mineral claims covering approximately 800 acres of land. Regionally, the Hercules is located within the Walker Lane, a structural belt extending more than 700 kilometers through western Nevada and into California, which hosts several important gold and precious metals deposits such as Comstock, Rawhide, Aurora, Paradise Peak, Bullfrog, Goldfield, and Tonopah.

Exploration conducted by others to date, including Pioneer Mining Corporation and Phelps Dodge Corporation, has led management of American Goldfields to conclude that the Hercules contains significant concentrations of mineralization. With more than $2 million USD in exploration expenditures and 176 drill holes totaling more than 33,000 feet, the majority of the drilling to date has been focused on shallow open-pit heap-leachable gold mineralization. Management believes there is potential for a thicker sequence of mineralized veins deeper within the epithermal envelope. No systematic exploration of the high-grade vein targets has been executed by previous drill programs.

Management considers the Hercules to be an epithermal gold-silver mineralized system with direct analogies to the historic Comstock Lode deposit. The historic Comstock Lode deposits of Virginia City consist of a series of fault controlled vein systems which, between the 1860's and 1880's, produced a significant quantity of rich gold-silver ore. Although some mining occurred near-surface, the bulk of the gold and silver mined at Comstock occurred below 1,200 feet. The Comstock bonanza-grade mineralization averaged 2.0 ounces per ton gold and 50 ounces per ton silver.

The company believes the Hercules property contains one of the most significant untested Comstock-type vein systems in the Western United States.

"The Hercules is an exciting mineral exploration property, in an area which we believe to be one of the highest-profile mineral regions in Nevada," said Donald Neal, President and CEO. "We believe that the Hercules, together with the Imperial Mine, the highly-prospective Gilman project, and the Cortez Trend projects, comprise a significant foothold in what has historically been one of the most valuable and concentrated gold districts in the world."

Results of the current drill program are expected to be available when laboratory testing is completed.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at
www.sec.gov.


Contact Information