Video: American Pacific Mining creates value on three fronts
Two-time Vale president Eliezer Batista dies
Leadership
Look beyond market approach to project valuations: van Zyl
Leadership
Pantoro bullish on bigger production profile
SPONSOREDpantoro limited
Genesis opens new chapter at Ulysses
SPONSOREDgenesis minerals
Shares in the company soared 2,750% from a March low to a 12-month high at C62c per share before retreating to 20c, which capitalises it at $13 million (US$10 million).
Highlights:
Two-time Vale president Eliezer Batista dies
Leadership
Look beyond market approach to project valuations: van Zyl
Leadership
Pantoro bullish on bigger production profile
SPONSOREDpantoro limited
Genesis opens new chapter at Ulysses
SPONSOREDgenesis minerals
Where there's smoke…
"This is a classic skarn at the surface, high grade, assumed to be above a porphyry system. Rio Tinto is obviously in the business of putting large orebodies into production. They don't really like the little teeny ones, they're looking for something big." - Eric Saderholm
Earn-in mechanics
"When we picked up this project, we inherited the the the joint venture agreement with Rio Tinto, but it's a good one; they can spend up to US$30 million to earn 70% of the project." - Warwick Smith
What did the drilling set out to achieve?
"It's an attempt to make the orebody bigger. Apparently the first hole did succeed in this. It has extended mineralisation about 30m or so down plunge, which we're very pleased with, I'm sure they are as well. So the continued programme is meant to make this particular skarn body bigger, more robust and more of a mineable entity." - Eric Saderholm
What makes Madison an ideal deposit for the volatile time we're in?
"It's spectacularly high grade in portions. We've seen that with recent drilling. We've seen with the previous drilling as well, so obviously, those are the type of things that can excite the market. And also, you know, it was last in production between 2008-2012. They produced 2.7Mlb of copper at between 20%-35% copper, and 7,600oz at 16.1 grams per tonne gold.
"So it's something that you can put in production in let's call it relatively short order, being as there's already still a small mining permit on site, you've got Rio Tinto, one of the world's largest companies as the operator alongside you, and you got something that's very high grade. I think for the market and for for creating interest that works incredibly well at the moment." - Warwick Smith
What is the real prize at Madison?
"Rio Tinto wants to make this a much bigger mineralised body. So they're going to gear up for 2021. They haven't discussed those plans with us yet, but we've been very happy with the consistent communications to date." - Eric Saderholm
With Madison mineralisation occurring in three styles, do you foresee a potentially more complex operation?
"The processing stream for these different styles of mineralisation, obviously, it's going to be different. What you do with the massive sulphide would be to ship it in a float concentrate, and that would have to go to a smelter. The other oxide mineralisation can be processed at any oxide mill. And there's actually a mill just about 20 miles from us, the Sunshine mine which historically produced about 2Moz for Barrick." - Eric Saderholm
Nevada strategy
"At Tuscarora we did a transaction recently with a company called Elko Sun. They're in the process of going public, and I know they're planning on doing somewhere around a 3,000m drill programme this year.
"And then gooseberry, which is a mine just outside of Reno and hasn't been touched since 1994. And had some spectacular grades previously, it's an asset we're really excited about, as well as ongoing discussions on that about a partner taking that on, we've spoken to a couple groups, we think we'll get something done on that in short order." - Warwick Smith
[American Pacific Mining has subsequent to the interview signed an earn-in agreement with private British Columbia firm Global Resource Acquisition Group for up to a 51% interest in the Gooseberry project.]
How has COVID-19 impacted the business to date?
"Things really took off after [a six-week lull following PDAC in March], especially for American Pacific. We closed that Madison transaction, and we closed a financing. We've been one of the lucky groups. I know there's a lot of people out there who have struggled through COVID. But for us, we've done well during that time." - Warwick Smith