Meridian takes option on property adjacent to Beartrack gold

American Gold Resources, a private Houston-based company, has signed a joint venture agreement with Meridian Gold which gives Meridian the right to earn an interest in American Gold’s Arnett Creek property in Idaho.

The 17,000-claim Arnett Creek is adjacent to and west of Meridian’s Beartrack gold deposit in Lemhi Cty. American Gold tested several targets on the property this year which returned encouraging results. Near the Haidee mine, drilling has delineated several million tons of oxidized material grading 0.03 oz gold per ton.

Drilling in the Little Chief mine area has also yielded positive results such as 95 ft grading 0.09 oz gold. A second stepout hole intersected 145 ft grading 0.14 oz gold.

American Gold has been active in the Lemhi Cty area since 1985. Since that time, the company has acquired more than 80,000 acres of ground. Asarco holds an option from American Gold on a 25,000- acre block immediately south of the Beartrack deposit.

In Colorado, American Gold is exploring a gold property in joint venture with Amax Gold (TSE). A 5,000-ft drill program completed by Amax this year upgraded several showings that were previously identified. The company is also involved with three exploration projects in Nevada that are 100% owned.