Gold American Mining Corp. (OTC.BB:SILA) has signed an option agreement to acquire a 100% interest in the high-grade silver-gold La Escondida Project located in Sonora State, Mexico.
The La Escondida property is comprised of two mineral concessions that cover 439.8 acres approximately 124 miles northeast of the city of Hermosillo in Sonora State, Mexico. The surrounding region has seen significant recent activity by foreign mining companies. Nineteen miles to the northeast of the property is NYSE-listed Yamana Gold Inc.’s Mercedes project, a development stage gold-silver project expected to start production at a rate of approximately 120,000 gold equivalent ounces per year from 2012. Eighteen miles to the north of Gold American’s La Escondida project is the Oroco Resources Corp.’s Cerro Prieto project, which recently reported 383,833 ounces gold and over 6 million ounces of silver reserves.
The La Escondida property is host to two distinct mineralized targets associated with a fault: a bulk tonnage-style gold-silver-lead disseminated area and a high-grade epithermal vein-hosted silver and gold area.
he high-grade vein-hosted silver and gold target consists of two veins. One vein is exposed over an area at least 800 meters long and is reported to be 3-5 meters wide. The second vein is exposed over an area at least 500 meters long and is reported to be 1-2 meters wide. The disseminated zone is found between these two veins, approximately 100 meters wide. These zones are open both along strike and at depth.
“The La Escondida project is a valuable addition to our growing project portfolio,” commented Johannes Petersen, President of Gold American. “It has an exciting potential to host a gold-silver deposit and the property’s infrastructure is excellent. A sampling program carried out at the end of 2009 showed that the property contains multiple targets with high-grade silver grades and good values of gold and lead. Several of the target zones remain open in at least one direction, and it has been determined that historic workings reached only the 30 meters depth level. These findings are significant in that there is the potential, with additional exploratory work, to show mineralization over much greater strike lengths and depths,” added Mr. Petersen.
Gold American Mining Corp. is a publicly traded 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.