🕐13.12.11 - 04:27 Uhr

AUSAMERICAN MINING [ASX: AIW] - LA PAZ RARE EARTH ELEMENTS PROJECT





Fortbridge Media Release

AusAmerican Mining [ASX: AIW] - La Paz Rare Earth Elements Project

Australian-American Mining Corporation Limited (AXS: AIW) announces that significant milestones have been reached on the 100% owned La Paz Rare Earth Elements project located in La Paz county in the state of Arizona in the United States of America.

Highlights:

* Large maiden JORC resource calculated
* NI 43-101 report due to be completed prior to Christmas 2011
* Deposit is not fully delineated, leaving room for a significant increases in tonnage
* High percentage of HREE (�Heavy Rare Earth Elements�)
* Deposit is amenable to open-pit mining, surface to 100ft delineated to date
* Positive preliminary metallurgical test work completed by SRC (�Saskatchewan Research Council�) in Canada
* Insignificant Uranium and Thorium, < 10ppm
* Ownership 100% AusAmerican and land titles are flawless and unencumbered
* Excellent infrastructure available for development

A maiden indicated resource of 16.2 million tonnes at 373.4 ppm (using a 300 ppm cut off) for 12.1 million pounds (lbs) Rare Earth Elements (�REE�) and an inferred resource of 112 million tonnes at 371 .5 ppm (using a 300 ppm cut off) for 83.5 million pounds (lbs) REE.

The total resource currently stands at 128.2 million tonnes at 371.5 ppm for 95.6 million pounds (lbs) REE.

An NI 43-101 report is being prepared and will be completed prior to Christmas 2011.

Further, preliminary test work to date is most encouraging, with overall TREO (�Total Rare Earth Oxides�) recovery of 68.1% after concentration to an average grade of 1248 ppm.

AusAmerican Executive Chairman Mr Jim Malone said: �We are very excited about our La Paz REE project. The project has been advanced significantly in a very short time period since its discovery 15 months ago and this is a credit to the AusAmerican team. It is now an advanced project that can be compared very favorably with its peers given the significant positive characteristics it demonstrates such as size, location, a high percentage of HREE�s, great infrastructure, favourable mining characteristics and very low concentrations of deleterious elements such as thorium and uranium�.

Please find more in the attachment.

For further information, please contact:

Jim Malone
Executive Chairman
+1 520 907 3657

Denis Geldard
CEO
+61 89325 5568

Media/investor enquiries:

Investor and Media Enquiries:
Fortbridge +61 2 9003 0477
Luke Dean +61 414 535 433








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