October 11, 2010 10:48 ET

Gold American Mining Corp. Begins Drilling at Guadalupe Property

RENO, NV--(Marketwire - October 11, 2010) -  Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to announce that drilling operations at its Guadalupe Property (Zacatecas, Mexico) are now underway.

Operations commenced late on Thursday, October 7, 2010. The first drill hole is targeting the down dip extension of the San Antonio vein and is currently at a depth of 230 meters. The planned target depth for the first hole is 500 meters and is expected to reach final depth in two weeks. The first set of assay results of the drilling is expected in 4 to 6 weeks.

As announced in our September 20th news release, the primary goal of this 2,500-meters drill program is to test the down dip extensions of the at least 6 veins that have been identified to date on the property. The secondary goal is to test the strong geophysical targets generated from the recently completed geophysics program that was successful in identifying several significant chargeability and magnetic susceptibility anomalies occurring at depth. Please refer to Projects Section on our website at for further information on our drilling program.

"We have begun drilling the first of six planned drill holes and its progress has so far been excellent, with an average drilling rate greater than 60 meters per day," commented Mr. Johannes Petersen, Gold American's CEO. "We are very pleased to see the drilling program commence on time and look forward with anticipation to the assay results which will begin to reveal what the Guadalupe Property contains as a silver-gold resource," added Mr. Petersen.

Drilling is being performed by Tecmin S.A. de C.V. -- a drilling contractor located in the Fresnillo area who has unparalleled experience in the region as they have done a majority of the drilling for Fresnillo, plc and have also worked for Fresnillo, plc and Mag Silver at the Juanacipio Joint Venture, located only 6.8 miles from the Guadalupe Property, where they drilled holes to a depth greater than 900 meters. Samples from the Guadalupe property will be prepared and analyzed by Stewart Labs in their facilities in Zacatecas, Mexico and Kamloops, Canada, respectively.

The Guadalupe property contains two historically significant mines and is located in one of Mexico's oldest mining districts, roughly 5 miles north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc. Roughly 6.8 miles to the southwest of Silver America's Guadalupe Property is the Juanicipio Joint Venture (JV) between MAG Silver Corp. (MAG) and Fresnillo plc, which is known as one of the world's highest grade undeveloped silver resources.

The Property contains greater than 20 known workings as well as two historic mines -- Santa Rita and San Antonio. Historic records containing references to the Santa Rita and San Antonio mines suggest that both mines were important and reached their height of production between 1910 and 1920 but were last in production in the 1980s. The property is completely surrounded by land controlled by Peñoles (either through Fresnillo or other subsidiaries and partners).

Highlight results from previous results include:

  • 1.00 g/t Au and 946.9 g/t Ag over 1.1m (including 1.83 g/t Au and 1,800.0 g/t Ag over 0.5 m)
  • 0.30 g/t Au and 622.0 g/t Ag from a mineralized dump
  • 0.59 g/t Au and 330.0 g/t Ag over 0.7 m
  • 5.35 g/t Au and 1,189.0 g/t Ag from a mineralized dump

Gold American Mining Corp. is a publicly traded (OTCBB: SILA) precious metals exploration company focused on the aggressive, ongoing acquisition and exploration of holdings with rich gold and silver production potential. Based in Reno, Nevada, Gold American has developed a promising portfolio of international properties in regions marked by stable politics, sound economies and friendly business relations. For more information the Company and its projects, visit Gold American's website at


Johannes Petersen, President

Forward-Looking Statements
The statements by our officers, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Contact Information

  • Investor Relations Information:
    Gold American Mining Corp.
    Toll Free: 1-800-274-3710
    E-mail: Email Contact