SOURCE: Gold American Mining Corp.

Gold American Mining Corp.

October 19, 2010 08:45 ET

Gold American Mining Corp. Guadalupe Drilling Update

RENO, NV--(Marketwire - October 19, 2010) - Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to provide an update on the drilling operations at its Guadalupe Property located in the heart of the Fresnillo district in Zacatecas, Mexico.

The first drill hole was completed ahead of schedule on Friday, October 15th and it reached a total depth of 507.35 meters. From core observation, we believe that the drill was successful in intersecting the down dip extension of the San Antonio vein at a depth of 347 meters. The intersected interval was 1.5 meters wide (from 347.0m to 348.5m). In addition, another 1.4m zone of interest was intersected from 420.0m to 421.4m. Samples will be prepared and shipped to Canada for analysis in order to determine the mineralization grades of these zones. The first set of assay results of the drilling is expected in 3 to 5 weeks.

The drill also intersected a greater than 90-meters zone of siltstone with pervasive very fine-grained pyrite, which could be the source of the strong IP chargeability anomaly uncovered by our geophysics program earlier this year. Further analysis is required to determine the true extent of the mineralization contained on this zone.

Operations on drill hole No. 2 started on October 16th and as of last night, 207 meters had been drilled. This second drill hole is targeting the down dip extensions of the parallel San Marcos and Santa Rosa veins.

"I am very excited that operations are well ahead of schedule and that we seem to have intersected our main target for the first drill hole, as well as two new zones of interest," commented Mr. Johannes Petersen, Gold American's CEO. "We will have to wait for the assay results and incorporate them into our geological model to achieve a greater understanding of silver-gold resource potential of the property. We expect to accomplish this by the end of this year," added Mr. Petersen.

Please note that at this stage of the exploration, the measurements provided on this press release don't represent true thickness measurements, which still need to be calculated and will be announced once the drilling program is completed and all data is analyzed. We encourage you to visit our website at for further information on our drilling program and for recent photographs of the operations.

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.

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.

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