Australian-American Mining has approved a major drilling programme at the Rio Puerco uranium project located in New Mexico, US.

The firm has planned a 7,700m drill programme with 35 holes, making use of both RC and diamond drilling, which will start soon and be completed within six months.

The current JORC inferred resource of 11.4 million pounds has been calculated from about 800 drill holes, within section 18 of the project.

The firm will drill 20 out of the 35 drill holes within section 18 and will drill the remaining 15 drill holes outside section 18.

The exploration programme is expected to increase the current inferred resource by drilling historic high-grade areas outside of the current estimated resource and test uranium-bearing formations within section 18, but not included in the inferred resource.