Gold American Mining (SILA) Shares Recover on Promising Guadeloupe Program Results

Posted by on Jul 20, 2010 | No comment

Gold American Mining Corp. (OTC BB: SILA) stock increased 69% from July 8 price of $0.45 to July 19 price of $0.76 as the Company announced the progress of second phase exploration program at Guadalupe Property in Zacatecas State, Mexico, reporting encouraging preliminary results that are likely to confirm the presence of high grade gold reserves.

SILA is a precious metal mineral acquisition, exploration and development company, formed in Nevada on July 2, 2007. On April 26, 2010, the Company agreed with Yale Resources Ltd. to acquire an exclusive option to purchase a 90% interest in two certain mining concessions in Zacatecas State, Mexico, covering approximately 700 acres (Guadeloupe Property). On April 28, 2010, SILA entered into similar agreement to acquire a 72% interest in 12 mining claims and a mill site claim containing approximately 245 acres, located in Clark County, Nevada (Keeno Property).

According to the Company, Keeno Property could potentially contain approximately 2.14 million ounces of gold equivalent resources accessible via open-pit bulk handling methods unavailable to the industry at the time these properties were initially developed. Moreover, a May 2008 report prepared by Mark See, Mining Engineer, mentioned that the gold equivalent resources combined with those of additional mineral deposits of lead (~130,000 tons), zinc (~115,000 tons) and copper (~13,000 tons) could represent an estimated equivalent gross in situ value in excess of $3 billion.

Gold American’s Guadalupe Property, which contains two historic mines, is currently processing 3 to 4 tonnes of ore per day, and is located in one of Mexico’s oldest mining districts roughly five miles north of the Fresnillo Mine, which produced more than 24,000 ounces of gold in 2009 under the operation of Fresnillo Plc. The nearby explorations reported high grade gold intercepts that that returned 4.95 grams per tonne (g/t) gold, which is characteristic of veins in Fresnillo district of Mexico.

In May 2010, the Company commenced the initial work program at Guadalupe Property that returned samples that included 1.00 g/t gold over 1.1m including 1.83 g/t gold over 0.5m, and 5.35 g/t gold from a mineralized dump. In addition, the Company recently acquired additional historical geological data for the Guadalupe property and surrounding area. Some highlights of the historical results include:

  • 920 g/t Ag, 6.0% Pb and 3.32% Zn over 0.5m
  • 680 g/t Ag and 7.3% Zn over 1.2m
  • 500 g/t Ag, 3.1% Pb and 3.6% Zn over 0.6m
  • 380 g/t Ag, 20% Pb and 7.0% Zn over 1.4m

The results of the initial and second phase of exploration program combined with available historical data and the known depth of the workings, suggest that the existent vein systems have the potential to continue to much greater depths at up to 900 meters, as is the case at the adjacent Fresnillo Mine.

The anticipations that the Company’s exploration program would be able to expand the property’s precious metals reserves estimates and grades and the consecutive establishment of a drilling program has contributed to the recovery of SILA stock price. Moreover, the price recovery was supported by the announcement that the Company secured $7.5 million equity financing from ZUG Financing Group S.A.

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This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors. BlueWave Advisors has been previously compensated ninety thousand dollars from Winning Media (a non-controlling third party) for SILA advertising and promotional services that have expired. Currently BlueWave Advisors has been compensated ninety thousand dollars from Winning Media (a non-controlling third party) for SILA advertising and promotion.  This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision.

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About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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