American Pacific Mining Corp (CSE: USGD / FWB: 1QC / OTCPK: USGDF)
(“APM” or the “Company”) is pleased to announce the company has
signed a Letter of Intent with Broadway Gold Mining whereby it was
granted the exclusive right to negotiate a definitive agreement
with Broadway and certain of its subsidiaries to acquire Broadway’s
interest in the Madison Copper Gold Project in Montana, USA.
The project is currently subject to an Earn-In
with Option to Joint Venture Agreement (the “Earn-in Agreement”)
with Kennecott Exploration Company, part of the Rio Tinto Group
(ASX, LON: RIO), as announced by Broadway on April 30, 2019 (a link
to the press release can be found here http://tiny.cc/dz2siz).
Kennecott Exploration Company is not a party to the Letter of
Intent or the proposed transaction between APM and Broadway.
The CEO of American Pacific, Warwick Smith,
commented: “The opportunity to acquire the fully-permitted,
past-producing Madison Copper Gold Project will strengthen the
portfolio with a porphyry/skarn project that has already been
evaluated and transacted upon by a major.”
There is no guarantee that the parties will be
able to finalize a definitive agreement. It is expected that any
such definitive agreement would be subject to a number of
conditions, including the receipt of all required regulatory,
corporate and stock exchange approvals, the completion of the
Arrangement and any required shareholder approvals. The exclusivity
obligations described above automatically terminate if Broadway’s
previously announced plan of arrangement with Mind Medicine, Inc.
does not close. Even if a definitive agreement is executed there
can be no assurances that the parties will be able to complete such
a transaction.
About the Madison Copper Gold Project:
The Madison Copper Gold Project is located in
the heart of Montana’s prolific copper-gold belt only 38km
southeast of the world-renowned Butte Mining District. The project,
a high-grade Cadia-like skarn over porphyry system, encompasses
2,514 acres consisting of six patented lode claims and 108
unpatented mineral claims. Targets outlined in 2017 cover a
two-mile-long by one-mile-wide zone of geophysical, geological and
geochemical indicators. The project is permitted for mining,
surface and underground exploration, and it encompasses two
past-producing underground mines called the Broadway and Madison
mines.
The Broadway mine produced 144,000 ounces of
gold from 1880-1950. The Madison mine was developed between
2005-2011 and generated 7,570 ounces of gold and 3,020,000 pounds
of copper from bulk samples of 19,803 tons (average 0.52 ounce/ton
Au and 25% Cu). Broadway Gold Mining Ltd. refurbished parts of the
Madison Mine in 2017. Approximately 3,000 total feet of underground
workings go to a depth of 215 feet underground at Madison. Broadway
rehabilitated the underground workings in order to access certain
stopes and underground mineralization, allowing for a successful
exploration drill program to take place as well. Currently, known
skarn mineralization and massive sulphide gold mineralization is
proposed to be linked to a deeper porphyry system.
According to Broadway, approximately $20 million
has been invested in the exploration, development and bulk sampling
of the Madison mine since 2005. Link to view the Vulcan Model of
Madison: Vulcan 3-D Modelling Defines Significant Zones at Madison,
Underground Phase II & III Drilling Planned
Drill Highlights from Madison
A current drill program was recently completed
at the Project including 14 drill holes targeting an area
displaying multielement soil and rock chip geochemical anomalies,
historic prospects, strong induced polarization anomalies and
porphyry drill intercepts.
Previous drilling at Madison conducted by
Broadway has delivered extremely high-grade gold and copper
intersections. Underground drilling in 2017 at Madison intersected
bonanza gold grades. The underground drill program was designed to
test the down dip extension of the auriferous massive sulfide zone
below the 600 level. A small program of 307 meters tested the zone
with considerable success. Results included:
- U17-05: 0.9m intercepts ranging
from 0.074 to 178.5 g/t Au within a 30.2m interval averaging 24.5
g/t Au and 0.391% Cu (from 8.2m)
- U17-04: 1.098% Cu and 1.651 g/t Au
over 25.3m (from 9.1m)
- U17-06: 41.6 g/t Au over 11m (from
8.2m)
Surface drilling included 19 holes over 3,984
meters, resulting in the discovery of a larger jasper zone with
abundant native copper and gold. Results included:
- C17-16: 1.725% Cu and 0.097 g/t Au
over 49.4m (from 177.1m), including 2.571% Cu and 0.151 g/t Au over
30.2 meters (from 195.4m)
- C17-17: 1.020% Cu and 0.159 g/t Au
over 31.1 meters (from 187.1m)
- C17-20: 1.247% Cu and 1.843 g/t Au
over 23.8 meters (from 130.8m), drilled into a massive-sulfide zone
that remains open at depth.
The complete assay results for the intervals,
drilling plan and sections can be found at
http://www.broadwaymining.com/current-exploration/.
Broadway’s QAQC
Sample Preparation and Quality Control
Supervision, organization and splitting of
drilling core samples were undertaken by company personnel. Samples
were collected at three-foot intervals from half core samples.
Samples were catalogued by Broadway geologists and stored in a
secure location. Certified reference standards were placed in the
sample stream of each drill hole at random intervals. Blank
material was also inserted at random intervals. Samples were packed
into rice bags, zap strapped and securely stored until they were
turned over to the local trucking company for transport to the ALS
Minerals Laboratory in North Vancouver, B.C.
Laboratory Quality Assurance/Quality Control
Quality control samples from the lab include
numerous control blanks, duplicates and standards. Reference
standards used include OREAS-904, OREAS-45b, OGGeo08 and PGMS25. No
issues were noted with analytical accuracy or precision.
Assay Techniques
Three different assay procedures were designed
by ALS Minerals for the samples, based on the presence of copper
sulfides or oxides, and native copper. The standard assay procedure
of Au-ICP21 and Cu-ICP61 was applied to most of the samples.
Au-ICP21 is a 30 gram fire assay with an ICP-AES finish. ICP61 is a
4 acid digestion of a 1 gram sample with an ICP finish. Samples
with visible copper mineralization received a Cu-OG62 copper
analysis, a four acid digestion of a 0.5 grams sample with ICP-AES
finish. OG62 has a copper range from 0.001 to 40%, while the ICP61
analysis has a copper maximum range of 10,000 ppm. Samples with
visible native copper received a duplicate Cu-ICP61 analysis
followed by a duplicate Cu-OG62 analysis that included a WSH-22
procedure where the pulverizers are cleaned with barren material
after every sample. Over-limit copper values from the ICP61
analyses received an OG62 procedure to determine the final Cu
grade.
Qualified Person
Technical aspects of this press release have
been reviewed and approved by Eric Saderholm, P.Geo., the
designated Qualified Person (QP) under National Instrument
43-101.
About American Pacific Mining
Corp.
American Pacific Mining Corp. is a gold explorer
focused on precious metal opportunities in the Western United
States. The Gooseberry Gold/Silver Project and the Tuscarora Gold
Project are two high-grade, precious metal projects located in key
mining districts of Nevada USA. The company’s mission is to grow by
the drill bit and by acquisition. American Pacific is Eyeing a Gold
Discovery amidst gold’s next bull market.
On Behalf of the Board of American Pacific
Mining Corp.
"Warwick Smith" CEO & Director
Corporate Office: Suite 910 – 510 Burrard
Street, Vancouver, BC, V6C 3A8, CanadaContact MarketSmart:
1.877.261.4466, info@marketsmart.ca
Forward-looking Information
Some statements in this news release contain
forward-looking information (within the meaning of Canadian
securities legislation) including, without limitation, statements
as to planned exploration activities and the expected timing of the
receipt of results. These statements address future events and
conditions and, as such, involve known and unknown risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the statements. Such factors include, without
limitation, customary risks of the mineral resource industry as
well as the performance of services by third parties.
Forward-looking statements are statements that
are not historical facts; they are generally, but not always,
identified by the words "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "projects," "aims,"
"potential," "goal," "objective," "prospective," and similar
expressions, or that events or conditions "will," "would," "may,"
"can," "could" or "should" occur, or are those statements, which,
by their nature, refer to future events. The Company cautions that
Forward-looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are
made and they involve a number of risks and uncertainties.
Consequently, there can be no assurances that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
The CSE has neither approved nor disapproved the
contents of this news release. Neither the CSE nor its Regulation
Services Provider (as that term is defined in the policies of the
CSE) accepts responsibility for the adequacy or accuracy of this
release.
Photos accompanying this announcement are
available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/22f4ef76-bc60-4421-9bd9-8b5c050bdef9
https://www.globenewswire.com/NewsRoom/AttachmentNg/957c3fa0-d558-4faa-82b0-a8351e0dd002
https://www.globenewswire.com/NewsRoom/AttachmentNg/c75eb2fc-b779-43c8-a94a-565bcdfb748a
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