AM Gold now only has 38M shares outstanding yet have 2.31M ounces gold eq. on two projects, See full article at http://miningmarketwatch.net/amg.htm

       

       News this week from AM Gold Inc. (TSX-V: AMG) (US Listing: ACERF) of the first resource estimate on their Red Mountain gold project, Yukon dramatically increases the intrinsic value of AMG.V and documents the Company’s presence and potential in the Tintina Gold Belt. The Red Mountain gold project appears to possess strikingly similar characteristics to other success stories and has the potential to rival Kinross’s Fort Knox deposit. Exploration is now aimed at stepping out and building on what is now understood to be the tip of a very large intrusive which peeks through the top of Red Mountain.
  

 This first resource estimate of ~542,000 ounces gold (23.6 million tonnes grading 0.7g/t gold) thus appears to represent just the very tip of the iceberg at Red Mountain as the interpretation of the geophysics indicates the target size is very large and extends to depth.

  

 Size of this first resource estimate & plans for 2010 targeting a multiple of the current resource
 AM Gold drilled a series of holes into the top of the intrusive which is exposed at the top of Red Mountain. Mining MarketWatch Journal contacted AM Gold's President and CEO, Dr. Stewart Jackson, P.Geol. to help us understand the size perspective. “
The geophysical interpretation is that there is a very large intrusive which is just peeking through the top of Red Mountain and comprises the centre of the mountain. So we have a very large intrusive, with a little bit of over burden on the sides. We drilled a series of holes into the top of area where it is exposed . The potential here, from my perspective, is that the whole mountain is prospective and we’re just starting to drill into it. Consequently I think that we have enormous potential and from an explorationist’s viewpoint our objective is to scope that entire target . We are starting to do that this year with some deeper holes and step out holes. We are going to drill the lateral extent, extending out from the current zone, and to greater depth.
  

 “
The current zone is contained within an area of modest size; 150m x 125m wide. The deepest hole in it is 331m deep. If one is to compute that volume at a rate of 3 cubic meters per tonne, one comes up in the order of ~20M tonnes. Within that generalized volume of rock our resource is estimated at 23.6M tonnes with a contained 542,000 troy ounces of gold. Now if we expand on that basis and step it out to a couple thousand metres, with similar width and depth, it becomes a zone in the order of 10 times that large. This is the way one expands a mineral resource, particularly if it is not closed off in any direction. The drill program this year will evaluate this potential to expand; go out a multiple of the current length, and also expand the width and depth. When it is demonstrated to go all of those directions then a subsequent drill program would get more expansive and more expansive until we have an ultimate measure of the deposit.
  

 Near and Long Term Target Objectives
 The biggest area reference is a Fort Knox (Kinross - currently producing open pit at average grade of 0.45g/t with only a modest cost of production) type target, so AM Gold’s target objective from an exploration viewpoint is 10M oz plus. Within this season AM Gold is looking at a modest multiple of what has been established already. This season’s program will basically enable AM Gold to design an aggressive program for the subsequent season. The objective is to have the maximum-sized resource scoped within three seasons – ideally within two.

  

 Dr Jackson offered the following synopsis “
The interpretation of the geophysics indicates the target size is very large. It comprises much of the mountain and is modeled quite effectively with the magnetic program – the magnetic low encompasses much of the mountain top and goes down into the mountain. That is our target – that coincides with the geological model. The drilling to date has been in the heart of that and only a portion of our drilling was included in the resource. We actually had a few holes on our previous drilling pattern that didn’t have close enough spacing to be included in the resource calculation. … The current program will focus on expansion of the already established zone. We are extremely optimistic that the total package will expand by a multiple this summer.“