Thursday, September 15, 2011

All American Gold Corp. (AAGC) Announces Definitive Agreement to Secure Interest in Iowa Canyon Property

Today before the opening bell, All American Gold Corp. announced that it has inked an option agreement to secure an initial 15% interest in the Iowa Canyon Property in Lander County, Nevada. The decision was made after careful consideration and review of geological information and data from previous works. In consideration for this 15% interest, the company is required to pay a total consideration of $100,000, half of this amount was paid upon signing. An additional option is available to the company to acquire another 25% interest in exchange for a $3,000,000 payment 60 days prior to the one year anniversary of the execution of the contract.

Easily accessible via paved highways, gravel roads and dirt roads, the Iowa Canyon Property is located approximately 30 miles southeast of the Cortez Hills deposit and 20 miles from the Cove-McCoy mine at the south end of the Carico Lake Valley. The property consists of 155 unpatented mining claims covering approximately 5 square miles. All American Gold has had the opportunity over the past year to evaluate the Iowa Canyon project through a right of first refusal agreement which recently expired.

“This project is in a burgeoning area of exploration of Nevada which our company has long had interest in and we are very pleased to have been able to secure this agreement. We feel that the Iowa Canyon project represents a high-quality exploration opportunity having, as of yet, untested potential within several gold and silver bearing targets. We look forward to formulating an aggressive exploration program through the expertise of our technical team. As the property advances, we also feel that it may be of great benefit to the company to have the additional option of aggregating up to a 40% interest in Iowa Canyon,“ stated Brent Welke, CEO.

The area has documented historic production of fluorite, turquoise and placer gold. Exploration for barite, molybdenum and disseminated gold is relatively new, occurring within the past two decades. Recent exploration efforts have discovered multiple episodes of precious metals mineralization over a district-wide scale (nine square miles). Gold is hosted in a variety of rock types including silicified Tertiary volcanic and volcanoclastic sediments, quartz veins, quartz stockwork zones, carbon-rich Paleozoic sediments, and as jasperoid replacements of lower plate calcareous sediments. The host rocks are structurally prepared, permeable and\or adjacent to dikes and sills that acted as conduits for mineralizing fluids. Late stage mineralization in the form of gold-silver-arsenic-antimony-mercury is zoned outward from a porphyritic quartz monzonite stock of late Cretaceous age. The stock is responsible for early stage molybdenum-tungsten-fluorite+gold mineralization. Gold and molybdenum are also disseminated within possible Eocene age felsic to mafic dikes and sills associated with northeast and northwest trending faults.

Previous work conducted in the 1980’s and 90’s by Echo Bay, Hemlo Gold, North Mining, Rio Algom and Carlin Mining identified gold and silver bearing zones within upper and lower plate sediments and Tertiary tuffs and conglomerates. Lower plate rocks believed to be Hanson Creek Formation have been encountered in both outcrop and in drilling on the north, east and west portions of the project.

About QualityStocks:

QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to learn more about investing in these companies as well as find and evaluate them.

Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net

The Quality Stocks Daily Blog http://blog.qualitystocks.net

The Quality Stocks Daily Videos http://videocharts.qualitystocks.net

The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net

Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net

No comments: