The company said this drilling program will complete the Phase I reverse circulation drilling project which is intended to determine the lateral extent of gold mineralization away from the San Marcos Open Cut mine.

The balance of phase I drilling will consist of 16 holes to lengths of up to 122m.

AusAmerican Mining will drill all holes at minus 45 degrees to optimize the intersection of both flat and high-angle mineralized structures.

An additional 1,950m will be drilled with the reverse circulation rig, the company said.