SOURCE: Gold American Mining Corp.

Gold American Mining Corp.

November 10, 2010 09:11 ET

Gold American Mining Corp. Guadalupe Drilling Update

RENO, NV--(Marketwire - November 10, 2010) - Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to provide an update on its drilling campaign at its Guadalupe Property located in Zacatecas State, Mexico.

As of November 8, 2010, five drill holes had been completed and a total of 1,767.1 meters had been drilled. The rig was mobilized to the location for drill hole No. 6 on November 9, 2010 and drilling is expected to resume this morning. The planned target depth for drill hole No. 6 is 350 meters and we expect to reach it within the next 10 days. The company is still waiting for the first set of assay results to come back from Steward Labs in Canada.

"I am very satisfied with the progress of the drilling campaign to date. We have successfully drilled the first five drill holes at an average drilling rate of approximately 55 meters per day and without any incidents," commented Mr. Johannes Petersen, Gold American's CEO. "I look forward with anticipation to the assay results, which I understand have been delayed because of the industry's higher level of drilling activity and higher laboratory services' demand," added Mr. Petersen.

As previously announced, 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. We will continue to provide regular updates on our drilling operations as new information becomes available. Please refer to Projects Section on our website at www.gold-american.com for further information on our drilling program and for recent photographs of the operations.

THE GUADALUPE PROPERTY
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

ABOUT GOLD AMERICAN MINING CORP.
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 www.gold-american.com.

ON BEHALF OF THE BOARD OF DIRECTORS,

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

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    Gold American Mining Corp.
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