GoldMiningNewsVideos

VIDEO: American Pacific Mining Corp (CNSX:USGD) High-Grade Gold Deposits at Nevada Site

MidasLetter Live
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American Pacific Mining Corp (CNSX:USGD) (OTCMKTS:USGDF) (FRA:1QC) CEO Warwick Smith provides viewers with details about gold deposits at the company’s Tuscarora project. American Pacific purchased the project from Novo Resources Corp (CVE:NVO) (OTCMKTS:NSRPF) (FRA:1NO) and the site has seen extensive exploration, with 61 previous holes drilled. However, American Pacific has located one of 11 high-grade epithermal veins and plans to undertake exploratory drilling in phase two of the project to pinpoint additional veins. Smith believes “grade is king, and this has real cracker grades.” Smith thinks the gold price is at the lower end of its cycle and that a reversal will happen soon making the Tuscarora project one with great potential for investors.

Transcript:

James West:   Hey, welcome back to Midas Letter Live. My guest in this segment is Warwick Smith, CEO of American Pacific Mining Corp., trading on the CSE under the symbol USGD. Warwick, welcome back.

Warwick Smith: Thank you, Jimmy. Appreciate being here.

James West:   Warwick, you’ve got a project underway called the Tuscarora; you recently announced an intercept of 1.5 metres, 18.4 grans per tonne.

Warwick Smith: Yes.

James West:   Does that build out on previous drilling, and is there a deposit coming together that’s hanging together?

Warwick Smith: Yeah, it sure does. I mean, this project really caught our eye because of the grades. I mean, previously there was a hole that was 1.5 metres, 180 grams per tonne; 1.5 metres, 143; 3 metres at just under 75 grams per tonne gold. But tremendously high grades. So we were thrilled; we got this project from Novo Resources, Quentin Hennigh’s company.

James West:   Okay.

Warwick Smith: We were thrilled to get the project from them when we went public in March, and since then, we’ve drilled 10,000 feet. So we had the one hit of 18.5 grams; we hit some longer hits, we had 9 metres of 5.88 grams, which was actually at the bottom of a hole. We outsmarted ourselves a bit, we thought the hole was dead at the bottom, but it ended in some great grades. And then numerous other hits throughout the one vein set there, which is the South Navajo vein. So we were really, really pleased with the drilling.

James West:   Sure. The Tuscarora Project, now, I’ve heard of a project called Tuscarora for a number of years; is it that same project, or is this just another one that’s called the Tuscarora that also happens to be in Nevada?

Warwick Smith: No, this is the Tuscarora in Nevada.

James West:   Ok. So this has seen a lot of exploration?

Warwick Smith: This has seen 61 holes before we got there, and then we drilled 16 holes on top of it. So we’re starting to really put things together as well. We have all of the old data. Newcrest drilled it before, Novo drilled it, and then now us. And we are, as I say, we’re thrilled with the drilling that we’re seeing come back.

James West:   Sure. Great. Well, so then, is this Carlin-style mineralization?

Warwick Smith: It’s the same age as Carlin – it’s 39 million years old – but it’s different. This is a high-grade epithermal vein. So 39 million years old is a bit rare for an epithermal vein, but for us, great underground grades, hangs together really well, and this is one of 11 veins that runs through our project. So that’s really where this gets exciting for us, is we can see this South Navajo vein coming together very nicely. But then we start looking and saying okay, there’s all these other vein sets, and there’s only been seven holes that have been drilled off to the east, two of which hit great grades. Hit 3 metres of 28 grams and then 1.5 metres of 4 grams. So we’ve got a lot of exploring to do; we’re very excited to get out and start our second phase of drilling and start building this into what we think will be a very nice deposit.

James West:   I see you’re only 20 kilometres southwest of Jerritt Canyon that produced 8 million ounces.

Warwick Smith: You’re right. Jerritt Canyon is literally, when you’re standing at Tuscarora, it’s just off to the east over a hill and that’s where Jerritt Canyon is.

James West:   So theirs is the same structure?

Warwick Smith: Don’t know. Love to think so, but Jerritt Canyon is a big deposit – it’s hard to compare yourself to them at this moment. This needs a lot more work and a lot more drilling, but we’re certainly excited by what we’re seeing at this point. Grade is king, and this has real cracker grades.

James West:   Okay. And so is this your primary flagship focus right now?

Warwick Smith: This is 100 percent our focus. We really, truly believe that, with the right amount of exploration, that we can turn this into a good-size deposit that we can either then take to production or transact on, and sell to one of sort of the mid-tiers or to one of the majors.

James West:   Okay, so is American Pacific’s business model then potentially a project generator as well?

Warwick Smith: Potentially. We have some projects within the company; we have the JPL project and then we have South Lida as well. Those two are ones that we would transact on at this moment. We’re quite keen to stick on Tuscarora ourselves, and really drive ahead and build this out to, again, to be a nice-sized deposit that we can then figure out where to go from there: do we put it into production ourselves, does somebody want to come along and make a proper bid for the company to take that on.

James West:   There has been a great number of new gold projects coming onstream lately, and the gold price certainly hasn’t supported that, but there’s a lot of reason to suspect that the gold price is at the lower end of its cycle at this point and could actually be poised for a reversal, given the –

Warwick Smith: We certainly hope so. But there’s been, look, there’s been a lot of good discoveries recently; lots of companies going out and leading with the drill bit, and doing really well. And that’s certainly what we need to do here, as well. We need to get back out. We’ve been public since the middle of March, right after PDAC, we went public, right after we spoke to you, I believe. So we’ve drilled 10,000 feet since then, so we’ve done a good amount of drilling.

Now, the intention is to go out and probably do around another 20,000 feet in this following 12 months.

James West:   Oh, okay.

Warwick Smith: So we’re going to put a lot of drills into the ground and create some excitement ourselves.

James West:   Cool. So, lots of drill results to come.

Warwick Smith: That’s the plan.

James West:   All right, Warwick. Well, that’s a great update. We’ll leave it there for now and come back to you after the drilling begins. Thanks for joining me today.

Warwick Smith: Thank you, James. Much appreciated.

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