The Golden Triangle mineralization area of NW British Columbia has
hosted and continues to produce some impressive discoveries. In the
past, names associated with the area such as Eskay Creek, Galore
Creek, Red Chris and many others drew great investor attention and
made companies such as Barrick a household name. After 1997, with
no Eskay type discoveries as well as infrastructure issues, and a
mining unfriendly NDP government resulting in a lack of financing,
the area went quiet.
Investors should note that given recent activity, the area is
once more coming alive in a big way.
"With the successful conclusion of 4 years of litigation
involving our Treaty Creek property in NW BC, we want to move the
project forward," stated Allan Burton, President and CEO of
American Creek Resources (TSX-V:AMK) (OTCBB:ACKRF). "Past work on
the property and the fact we are situated in the same hydrothermal
system as elephant discoveries in the area, gives management
confidence that Treaty Creek could potentially deliver a
world-class deposit."
Two examples of large recent finds in the area are those by
Seabridge and Pretium, one of which borders AMK's Treaty Creek
property and Pretium which is within 2 kilometers. If one combines
the claims of these adjacent companies, there are 130 million
ounces of gold plus 800 million ounces of silver, 20 billion pounds
of copper and several other metals. In a modest 12-kilometre
circle, the combined value, depending on commodity prices, could
exceed $300 billion.
"BC's Golden Triangle has come alive again, with at least five
world-class mining projects headed toward production. Having
already delivered millions of ounces of gold and tens of millions
of ounces of silver, the region ranks as an important mineral
district. Yet, that production represents only a tiny fraction of
the metal now known to be hosted in the district." Lawrence
Roulston Report; August 2012.
Pretium's Valley of the Kings deposit has shown recent results
that are compelling, including 0.5 meters that carried 41,582 grams
per tonne gold (1.6 feet at 1,213 ounces per ton of gold). Another
hole hit 2,393 g/t gold and 1,605 g/t silver over 10.7 meters (70
ounces gold and 47 ounces of silver per ton over 35 feet). Numerous
intersections have exceeded 1,000 g/t, grades rarely seen in gold
deposits.
Seabridge's KSM property, with the Iron Cap deposit 800 meters
from Treaty Creek, has P&P of 38 million ounces of gold, 10
billion pounds of copper and 191 million ounces of silver. Drilling
continues to expand the resource. Inferred resources note a further
21 million ounces gold, 10 million pounds copper and 139 million
ounces silver. Grades average .55g/tonne for P&P and .41g/tonne
for Inferred.
Seabridge has a current share price of $8.00 with a market cap
of $379 million. Pretium trades at $6.00 with a market cap of $660
million.
American Creek trades at $0.08 with a market cap of $11 million.
While there is some risk should an appeal be successful, AMK
appears a decent speculation.
Given that both peer properties either border or are within a
few kilometers of Treaty Creek, which on its own is larger than
both properties combined, AMK management is confident that the
project has world-class potential.
The Treaty Creek property hosts the same rock units and
structural features that are related to the vast mineral deposits
on the properties to the south. The structural trend appears to
continue on to the Treaty Creek property.
Surface sampling and the drilling in 2009 outlined two
mineralized zones that look similar to the porphyry copper- gold
mineralization on the Seabridge property. Drilling by American
Creek on the Copper Belle zone encountered 241 meters that averaged
0.8 grams per tonne, ending in mineralization. That grade and width
are in line with the resources on the adjacent property.
Further, Treaty Creek's GR2 Zone hosts gold, silver and base
metals in a volcanogenic massive sulfide (VMS) setting similar to
the Eskay Creek deposit, just 15 kilometers to the northwest, which
was one of the highest grade major gold-silver deposits in the
world. Results of drilling in the GR2 zone included 5.4 g/t gold
over 14 meters along with silver and base metal values.
Seabridge also wants to construct twin tunnels at a length of
22.8 km to connect its KSM property to its proposed mill site.
Roughly half the tunnel distance goes directly under AMK's Treaty
Creek. Over and above any deal made for the tunneling, any
exploratory holes drilled to establish the route would provide AMK
with exceptional geological data.
While the adversary in the Treaty Creek litigation has announced
it intends to file an appeal, AMK management is confident the
Court's decision will be upheld. AMK's share price almost doubled
upon the recent Court finding for the Company.
At current levels, the shares are a bet on AMK successfully
concluding the litigation and ultimately an option on both Treaty
Creek and the Golden Triangle as a whole. Since the property sits
in the middle of some of the largest—and ongoing--discoveries in
the world, it may well appeal to risk-oriented investors who side
with management that Treaty Creek will eventually be a world-class
deposit.
The evidence, so far, is certainly compelling.
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CONTACT: American Creek Resources (TSX-V: AMK OTC:ACKRF)
Box 798 53A Broadway North
Raymond Alberta
T0K 2S0 Canada
(403) 752-4040
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