SOURCE: Gold American Mining Corp.

Gold American Mining Corp.

October 05, 2010 09:00 ET

Gold American Mining Corp. Ready to Drill Guadalupe Property

RENO, NV--(Marketwire - October 5, 2010) - Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to announce that preparations for the upcoming 2010 drilling program at the Guadalupe Property (Zacatecas, Mexico) are complete.

The Company expects to commence drilling on its Guadalupe property on October 7, 2010. The Guadalupe property 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.

The Company has budgeted for 2,500-meters of core drilling on the property and expects the program to last approximately two months. Six surface drilling locations have been prepared and are now drill-ready. All EJIDO, SEMARNAT and NOM 120 (local, state and federal) permits have been obtained. A warehouse has been conditioned for core storage and all necessary equipment has been purchased. The company has been advised that the drill rig will arrive on location on October 7, 2010 and drilling operations would start shortly after. Drilling operations will be performed by Tecmin Servicios S.A. de C.V.

"We are very excited with the pace of progress at our Guadalupe property. We consider that the drilling program we are about to embark on represents an important milestone in the growth of our company. We believe that each of our planned drill holes has the potential to intersect significant mineralization and provide important geological information," commented Mr. Johannes Petersen, Gold American's CEO. "The fully-funded 2,500-meters of drilling will greatly assist Gold American to discover the full potential of the Guadalupe project," added Mr. Petersen.

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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