Mining Journal's Chris Cann speaks with American Pacific Mining chief executive Warwick Smith about the deal that saw the world's second-largest miner commit to a potential 11-year, US$30 million programme at the Madison copper project in Montana, along strike from the world-scale Butte mining district. They also talk through the acquisition of the Red Hill copper project in Nevada and its position in a North America portfolio growing in size and quality.
American Pacific Mining Corp. (CSE: USGD / OTCQB: USGDF / FWB: 1QC) is a gold exploration company focused on precious metal opportunities in the Western United States. The Company completed a transformational transaction in 2020 by acquiring the Madison Copper Gold Project near Silver Star Montana, USA, a joint venture with Kennecott Exploration Company, part of the Rio Tinto Group (ASX, LON: RIO). For this transaction, American Pacific has been selected as a finalist in the S&P Global Platts Global Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories, including 'Deal of the Year,' the category in which American Pacific Mining is competing. The awards program is hosted by S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets.
Through the earn-in agreement, Rio Tinto may spend $30 million USD to earn up to 70% of the Project.
Rio Tinto has already commenced an up to US $5M exploration program at Madison with diamond drills already turning and results expected throughout the second half of 2021.
Madison has a rich history of production having sold nearly 2.7M pounds of copper with grades ranging from just under 20% to over 35% Cu and 7,570 ounces of gold at an average grade of 16.1 g/t between 2008 and 2012.
The project is analogous to and just 48 km from the Butte mine, which churned out 21 billion lb. copper, 715 million oz. silver, 2.9 million oz. gold plus significant zinc, lead and manganese when it was in production between 1955 and 1982.
Also in the Company's project portfolio are two highly prospective high grade precious metals projects, the Gooseberry Gold and Silver Project and the Tuscarora Gold Project, both located in Nevada-one of the world's most prolific precious metals jurisdictions.