TORONTO--(BUSINESS WIRE)--American Paramount Gold Corp. (OTCBB: APGA) (americanparamountgold.com) (the “Company”) is pleased to announce receipt of the Capgold Project’s CSAMT (Controlled Source Audio Magneto-Telluric) Report from the Company’s Consulting Geophysicist, Mr. Jim Wright. The report entitled “Capgold Property CSAMT Survey GIS Compilation” has doubled the strike length and identified 9 additional drill targets at the Company’s high-grade gold and silver, volcanic rock hosted epithermal project in Nevada.
American Paramount Gold’s CEO Mr. Hugh Aird stated, “We are very encouraged with the results: we now have a much better understanding of the tremendous potential of our Capgold Project.” Mr. Aird continued, “We look forward with great anticipation to the commencement of drilling at Capgold, along what is now approximately 5 kilometers of strike length of geologically permissive structural corridor, which is double the strike length previously identified. American Paramount Gold’s technical group has been given the green light to commence preparations to escalate the $2.5 million heavy drilling exploration program at the 6 square mile Capgold Project.”
CSAMT is a ground-based geophysical technique which measures relative resistance to the flow of electrical current through rocks. It is particularly useful in pediment cover situations in basin and range terrain settings such as at the Capgold Project, where historic drilling has demonstrated a strong correlation between high-grade and lower grade gold and silver in drill holes and areas of intense alteration (also commonly known as intense “silicification”).
Three examples of this correlation taken from historic drilling include:
- 15.5 grams gold and 195 grams silver per tonne over 4 feet in core hole AC-02;
- 24.3 grams gold and 256 grams silver per tonne over 5 feet in RC hole C-6;
- 1.41 grams gold over 65 feet in RC hole T93-8.
A list of the significant historic drill-hole intersections from Capgold and other Project and Corporate information is available for viewing on American Paramount Gold’s website at http://americanparamountgold.com/files/gold-project.php.
Mr. Wright’s Report analyses the CSAMT (Controlled Source Audio Magneto-Telluric) survey data collected in December and makes specific recommendations including to examine, by drilling, the nine (9) targets generated from his interpretation of the new survey data and the related historic project data. These new drill targets are contained within two geologically permissive “corridors” of approximately equal length (the “Cap Corridor” and the parallel “South-East Corridor”). Together these geologically permissive corridors have an apparent combined strike length of approximately 5 kilometers.
The Report also shows the historic drilling, which intersected high-grade gold and silver mineralization in a vein system lying within and more or less at right-angles to the strike of the Cap Corridor, occupies a relatively small portion of the Cap Corridor. The South-East Corridor has seen no drilling targeting the high-grade vein targets. Capgold is located on the Toiyabe-Kawich Lineament of the Walker Lane Precious Metals Trend in Nye County, approximately 55 miles east-south-east of Tonopah and approximately 125 miles west-north-west of Las Vegas.
The $2.5 million Phase One drill program being readied for implementation will test the 9 new target areas identified in the CSAMT Survey by the Company’s Consulting Geophysicist in the Cap and the South-East Corridors, the drilling targets identified from the ongoing review of the historic Capgold data including the high-grade gold and silver in drill holes, the full integration of the project geology and the old and new data sets, and any new targets generated during the course of the drill program.
The Company is targeting a second quarter start-up for the on-site phase of the program. More information will follow as it becomes available.
On behalf of the Board
Forward-Looking Statements
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of gold prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.