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All American Gold Corp. Encouraged by Silver Findings from Goldfield West


All American Gold Corp. Encouraged by Silver Findings from Goldfield West

INDIANAPOLIS, January 12, 2012 /FSC/ - All American Gold Corp. (AAGC - OTCBB),is pleased to announce it has received results for five reverse circulation holes (GWF1101, 1102, 1103, 1104 and 1105) of a total permitted 21 hole program.


Summary

Drilling was initiated on September 24th at Goldfield West (GFW) using a reverse circulation (RC) drill rig. A total of five angled RC holes totaling 3,510 feet were drilled. Two east-west fences of two holes each were drilled in the South target (See Figure 1 on the website) attempting to identify major feeder faults interpreted from geophysical surveys conducted over the area. The two fences are 300 feet apart. A fifth hole was drilled 4,500 feet north near a historic hole containing a significant thickness of anomalous gold.

Four near-vertical feeder faults were identified in the three sections drilled (See Figures 2-4 on the website). Faults were identified by intervals containing much higher silver values than those within the volcaniclastic hosted gold/silver zones. Volcaniclastic hosted mineralization spread from these feeders. It is hypothesized that densely welded tuffaceous rocks at depth are brittle enough to form openings in which high-grade veins might form. The targets identified can easily be tested with angle RC holes which will need to be approximately 1,500 feet in depth.


The Program

Drill holes GFW1101 and 1102 were drilled on Section 83300N (Feet North) on the same section as GFW1002C, a steeply dipping core hole drilled in 2010 which defined the stratigraphy of the area and contained numerous +0.01 g/t gold intercepts with some quartz/sulfide veining. GFW1101 intersected 10 feet of 0.17 g/t gold and 18.6 g/t silver at 140-150 feet. The hole has an additional 160 feet total thickness of +0.10 g/t gold, but no other high silver grades. This intercept appears to be a north-south trending steeply west dipping feeder fault. The association of high silver with or without gold in feeder faults was discovered while drilling the Nevada Eagle vein extension several years ago. Brittle rocks occur roughly 900 to 1,100 feet below the surface on Section 83300N and where the interpreted fault crosses these rocks is a high-grade vein target.

Drill holes GFW1103 and 1104 were drilled on Section 83500N. GWF1103 contained two high silver intervals, postulated to be two feeder faults. From 215 to 225 feet the hole assays 13.3 g/t silver and from 320 t0 330 feet assays 25.1 g/t Ag. GFW1004 contains 36.7 g/t silver from 215-220 feet. These three interpreted faults were given the same orientation as those on Section 83300N. Again, brittle rocks occur roughly 900 to 1,100 feet below the surface and where the interpreted faults cross these rocks are high-grade vein targets. Geochemical results for all five holes using a 0.10 g/t gold equivalent (AuEq) cut off are shown in the table below.



GOLD FIELD WEST DRILLING SUMMARY             Dec., 2011

-***-
-------------------------------------------------------------------
Target      Hole    From      To  Interval  Gold  Silver  Au Equiv.
          Number   (feet)   (feet) (feet)   (g/t)   (g/t)   (g/t)*
-------------------------------------------------------------------
South     GFW1101    140     150      10   0.167    18.6      0.476
                     155     165      10   0.158     2.6      0.201
                     190     210      20   0.331     2.5      0.372
                     220     240      20   0.321     2.1      0.357
                     250     255       5   0.232     2.3      0.270
                     260     290      30   0.221     2.4      0.261
                     310     330      20   0.622     3.7      0.683
                     335     350      15   0.111     1.9      0.142
                     365     375      10   0.406     2.4      0.446
                     550     575      25   0.324     2.3      0.363
                     640     645       5   0.129     1.7      0.157
-------------------------------------------------------------------
South     GFW1102    300     310      10   0.353     2.9      0.401
                     320     400      80   0.350     2.2      0.387
                     405     420      15   0.243     1.3      0.264
                     555     560       5   0.171     1.6      0.198
                     585     590       5   0.445     5.0      0.528
-------------------------------------------------------------------
South     GFW1103    210     230      20   0.261     7.6      0.388
        Including    215     225      10   0.331    13.3      0.553
                     320     330      10   0.286    25.1      0.704
                     685     700      15   0.574     3.6      0.634
-------------------------------------------------------------------
South     GFW1104    210     330     120   0.409     4.3      0.481
                     215     220       5   0.401    36.7      1.013
                     345     490     145   0.538     3.2      0.591
                     520     560      40   0.262     1.6      0.289
                     565     570       5   0.128     1.7      0.156
                     575     580       5   0.208     1.5      0.233
                     605     620      15   0.132     1.4      0.154
-------------------------------------------------------------------
South     GFW1105    170     180      10   0.647    28.7      1.124
                     250     255       5   0.202     1.7      0.230
                     265     280      15   0.222     3.1      0.274
                     320     340      20   0.384     2.7      0.429
                     360     395      35   0.316     2.4      0.357
                     405     410       5   0.114     1.5      0.139
                     485     500      15   0.140     1.9      0.172
                     540     555      15   0.330     2.0      0.363
-------------------------------------------------------------------
-****-

*Gold to Silver Ratio of 60/1 used for Gold Equivalent Calculations


GFW1105 was drilled on Section 87900N in an area where a historic vertical drill hole (MZ4) had intersected a thick section of anomalous gold.  This hole intersected 0.65 g/t gold and 28.7 g/t silver from 170 to 180 feet. This indicated feeder fault was interpreted as parallel to the feeder faults further south and the target depth is interpreted as the same.

The results show thick sections of nearly flat-lying volcaniclastic hosted gold/silver mineralization with values averaging 0.3 to 0.5 g/t AuEq with infrequent near vertical feeder faults as shown by high silver values. While the flat-lying mineralization is not currently economic the extensive volume of mineralization indicates major feeder faults were active in the
area.

For the first time feeder faults have been identified at the South Target. The projection of these feeder faults into brittle rocks at depth defines several high-grade vein targets. Four such targets have been defined by this latest drilling program. The company will continue to assess the latest data to define targets for a third phase of drilling which is expected to commence in early spring of 2012.

See website for figures under Projects/Goldfields West/Maps and Figures.

Richard Kern, M.S., (P.Geo and SME member) of Reno, Nevada, is the Company's qualified person on the project and has reviewed the technical information contained in this press release.

All American Gold Corp. holds a 35% interest in the Goldfields West property.


About All American Gold:

All American Gold Corporation is a precious mineral exploration company focused on the acquisition and ongoing exploration of mineral property holdings in the United States. The company has spread its holdings across the state of Nevada, diversifying its investment while using the latest technology and geological resources to select properties in the most promising mineral zones. All American Gold Corp. intends to continue to seek out new opportunities through its experienced and proven geological team. Additional information concerning All American Gold Corp's projects can be found on the company's website at www.allamericangoldcorp.com


For further information, please contact Investor Relations:

Parkside Communications Inc.
Phone: 1-877-798-4165
Direct: 212-419-4925
Investors@AllAmericanGoldCorp.com
www.ParksideCommunications.com



Safe Harbor Statement

THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.

EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE",""ANTICIPATE", "BELIEVE", "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE INCLUDE STATEMENTS RELATING TO THE COMPANY'S PLANS TO COMMENCE A THIRD PHASE OF DRILLING IN SPRING 2012. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH MINERAL EXPLORATION AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL AND QUARTERLY REPORTS ON FORM 10-K AND FORM 10-Q, RESPECTIVELY, AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S EXPLORATION EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

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To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/allamerican01122012.htm  ;



Source: All American Gold Corp. (OTC - AAGC) www.allamericangoldcorp.com
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