Gold American Mining Corp. (OTC.BB:SILA) announced in their recent press release it 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. Small gambusino-style workings occur at different points on these targets, where historical sampling returned the following selected results:
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Sample No.Gold (g/t)Silver (g/t) Observations
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22309 1.85 278.73 Quartz Vein in old UG low angle
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22310 0.78 501.31 Mineralized dump, fragments of vein
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22311 0.45 541.58 Exposure in the inner area of old UG
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22301 0.20 851.17 Mineralized dump, fragments of vein
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23722 0.42 728.52 Veins N65E 30SW
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23691 0.27 774.10 Veins N65E 28SW
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23725 0.22 908.69 Veins N65E 25SW
The 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.
