VANCOUVER, Jan. 22, 2016 /CNW/ - At nearly $1,100 per ounce, the price of gold is trending upward for the first time since the August 2015 market correction. In fact, gold is up over 3% this year and is one of the only commodities in positive territory year-to-date. Given the promising start to 2016 for the precious metal, it makes the news coming out of American Creek Resources very timely.
American Creek is the 100% owner of the Electrum project, a property situated in the southern portion of British Columbia's Golden Triangle. The Golden Triangle is a well-known region in B.C. for its prolific precious metal mining as well as its highly developed infrastructure. On top of being a very accessible region for miners, there's also a world-class concentrate shipping port in nearby Stewart.
Of greater significance is the location of the Electrum project, which sits between Pretium's Brucejack Mine and the Silbak Premier Mine. The Premier mine (25 km S) is a past-producing mine while the Brucejack (20km N) is slated for production next year. Both properties contain high-grade veins of gold and silver (electrum). As a matter of fact, the Brucejack project is described by Pretium as being the highest-grading undeveloped large-scale gold project in the world.
Here's the thing, The Electrum project, Brucejack, and Silbak Premier all lie within the same mineral district (the Iskut River) with high-grade epithermal veins of electrum. In other words, these projects have numerous geological similarities between them.
That being said, just this week, AMK announced promising results from multiple targets on their Electrum project. The locations tested had been identified in the past, but the company was only recently able to complete a drill program which provided a much better geological understanding of the project.
The geological team, led by Alex Burton and Malcolm Warwick, have close to 100 years combined experience. Mr. Burton has worked in 22 different countries in exploration and in bringing mines into production.
American Creek took 22 samples from the surface of an area known as Shiny Cliff. In the specimens collected from the Shiny Cliff central vein, the average amount of silver identified was 27,092 grams per ton (g/t), while gold averaged 248 g/t. The richest sample graded 37,995 g/t silver with 1,926 g/t gold. Using the new, advanced drilling methods, the veins were shown to carry both gold and silver at various intervals throughout the structure.
In the Rico Showing, about 50 meters south of Shiny Cliff, specimen collections show an average of 11,512 g/t of silver and 54.6 g/t of gold. Just east of the Rico Showing, sampling in the Mine Hill area produced specimens with an average of 523 g/t silver and 6.5 g/t gold.
Given the results, along with previous exploration done by the company, it's easy to infer the property is ripe for further exploration. The company's exploration plans for 2016 include surface work, drilling and preparations for bulk sampling to obtain grade and recovery characteristics. More info on the latest results can be found on their website at: http://americancreek.com/images/Electrum_Presentation_Jan_21_2016.pdf
While the Electrum project is still very much early stage compared to Brucejack, the geological comparisons need to be given close consideration. At the current price, Pretium has a market cap of over $615 million. Meanwhile, AMK is currently trading at under an $8 million market cap. Taking current data into consideration and understanding the geological similarities between the two properties, the valuation disparity between the companies appears to be skewed if American Creek can continue to prove results like we saw today.
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SOURCE The Financial Press