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TORONTO, July 4, 2011 /CNW/ --
TORONTO, July 4, 2011 /CNW/ - Win-Eldrich Gold Inc. ("WEG"), a wholly
owned subsidiary of Win-Eldrich Mines Limited ("WEX") (TSXV:V), and
American Mining Corporation ("AMC"), a Nevada corporation (OTCQB:
AMCM), are pleased to announce that AMC has completed the initial cash
payment to WEG of US$500,000 with the support of its consultant
Versatech Capital For Mining. On March 24, 2011, the two companies
entered into a Letter of Intent ("LOI") in which they agreed to create
a new limited liability company ("LLC") for the purpose of doubling the
capacity of the 100 ton per day Ashdown milling facility in northern
Nevada to 200 tons per day, and then sharing equally in the proceeds
from contract milling for existing high grade gold resources in Nevada.
To complete its 50% buy-in to the new LLC, AMC will contribute an
additional US$1.5 million to WEX and purchase and move a 100 ton per
day mill circuit to Ashdown facility, which will be installed by the
new LLC.
Perry Muller, CEO of WEX noted the following: "We can now begin to
finalize ore contracts, amend existing permits and begin adding
capacity. Cash generated by our existing molybdenum operation combined
with contract processing of third party ores will increase WEX's
income, enabling WEX to expand development of its molybdenum reserves
and begin to develop the gold deposit at Ashdown. Since our
underground mine infrastructure is already in place, we anticipate
rapid capital pay-back of the cost to develop the gold deposit
identified by drilling in the 1980s and 1990s. Ashdown produced 16,000
ounces of gold (averaging 10g/t) between 1880 and 1942, using primitive
mining technology. Also, major mining companies such as BHP Billiton
and Inco spent roughly $8 million proving up molybdenum and gold
resources at Ashdown in the 1980s and early 1990s, only to abandon
their efforts because of extremely low gold and molybdenum prices at
the time. - (A recent report about WEX by its investor relations firm
Torrey Hills Capital appeared on June 2, 2011 at "www.stockhouse.com/Columnists/2011/Jun/2/Gold-lining-for-this-moly-junior"
Gary MacDonald, CEO of American Mining Corp stated that "We are pleased
to see progress in our mutual efforts and look forward to our
continuing growth with Win-Eldrich. We also wish to express our
appreciation to the management and operations team of Win-Eldrich." He
added that "the new Ashdown LLC, along with continued developments on
our 16 to 1 mill site at Silver Peak, Nevada, will bring us closer to
demonstrating our business model as a precious metals "production
based" company. We thank our shareholders, as well as our key vendors
for their support as we continue to advance operations of our two
milling facilities in Nevada."
Versatech Capital For Mining
www.versatechcapitalformining.com, a boutique mine financing firm, has been an advisor and source of
funding for this LOI. Versatech's contact is Cherise Petker at (415)
845-7845.
This news release includes certain forward-looking information and
forward-looking statements (collectively "forward looking statements")
concerning the future performance of our business, its operations and
its financial performance and condition, as well as management's
objectives, strategies, beliefs and intentions. Forward-looking
statements are frequently identified by such words as "may", "will",
"plan", "expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results, including in respect of the
increase in production levels at the Ashdown mine. Forward-looking
statements are based on the current opinions and expectations of
management. All forward-looking statements are inherently uncertain
and subject to a variety of risks and uncertainties, including the
speculative nature of mineral exploration and development generally and
specifically in respect of the interpretation of the geology,
continuity, grade and size of mineral deposits, unanticipated
operational or technical difficulties, fluctuating commodity prices,
competitive risks and the availability of financing, changes in laws or
regulations, changes in the financial markets and changes in general
economic conditions, as described in more detail in our recent
securities filings available at www.sedar.com. Such forward-looking
statements are based on a number of assumptions, including but not
limited to the level and volatility of the price of gold and
molybdenum, the availability of financing, the accuracy of reserve and
resource estimates and the assumptions on which those estimates are
based and the ability to achieve and maintain certain operational
efficiencies. Should one or more risks and uncertainties materialize or
should any assumptions prove incorrect, then actual events or results
may differ materially from those expressed or implied in the forward
looking-statements and we caution against placing undue reliance
thereon. We assume no obligation to revise or update these
forward-looking statements, except as required by applicable law.
NEITHER THE TSXV VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/04/c3200.html
p Perry Muller, President and Director of Win-Eldrich, at (402) 435-7206.br/ Website: a href="http://www.win-eldrich.com/"www.win-eldrich.com/a /p p Gary McDonald, CEO of American Mining, at (888) 505-5808.br/ Website: a href="http://www.americanminingcorp.com/"www.americanminingcorp.com/a /p