American Creek up 33% on Goldstorm results
American Creek Resources Ltd. [AMK-TSXV; ACKRF-OTC] shares rallied sharply in heavy trading Tuesday July 30 after the company announced drilling results from the Treaty Creek Joint venture project, located in the Golden Triangle region of northwestern British Columbia.
Results released Tuesday are from the first three drill holes to target the Goldstorm Zone. Highlights included a 780-metre intersection grading 0.683 g/t gold, including a higher-grade upper portion of 1.095 g/t over 370.5 metres (from 63.5 metres to 434 metres) in drill hole GS19-42.
In light of the favourable results obtained during Phase one drilling, a second drill has arrived on site and has begun drilling for the Phase two portion of the program, the company said.
Investors reacted to the news by sending American Creek shares up 33% or $0.02 to $0.08 on volume of 7.12 million. That made American Creek the most actively traded stock on the TSX Venture Exchange on Tuesday. The shares are currently trading in a 52-week range of $0.025 and $0.06.
American Creek is a Canadian junior mineral exploration company with a portfolio of gold and silver properties in British Columbia. Three of those properties are located in the Golden Triangle and include the Treaty Creek and Electrum joint venture projects with Tudor Gold Corp. [TUD-TSXV; TUC-FSE] as well as the 100%-owned past-producing Dunwell Mine.
The Treaty Creek joint venture is 60%-owned by Tudor Gold and is the project operator. American Creek and Teuton Resources Corp. [TUO-TSXV, TUC-FSE] each hold a 20% stake in the project. American Creek and Teuton are both fully carried to a production notice. At that point, each of the two is required to contribute their respective 20% share of development costs.
Until that happens, Tudor is required to fund all exploration and development costs. The property is also subject to 3% net smelter return royalties.
The 17,913-hectare Treaty Creek Project borders Seabridge Gold Inc.‘s [SEA-TSX; SA-NYSE] KSM property to the southwest and borders the Pretium Resources Inc. [PVG-TSX] Brucejack Mine property to the southeast. The past-producing Eskay Creek Mine lies 12 km to the west.
Exploration of the Treaty Creek area over the past 30 years by various junior companies has resulted in the discovery of a number of surface mineral showings, some with very high gold and silver values. There have been over 150 diamond drill holes completed on the property from 1987 to date, in eight different mineral zones. However, it is only recently that drilling revealed the potential for a large-scale porphyry-style gold deposit at the Copper Belle and Goldstorm zones, which are located on trend and just 5 km northeast of the KSM deposits.
By the end of 2017, Tudor Gold said 57 drill holes, covering 23,000 metres had been drilled at the Copper Belle Zone, within an area measuring roughly 1,000 metres in length, 400 metres wide and to depths of 500 metres. A number of long mineralized intervals were revealed, including hole CB-17-07, which returned 369 metres averaging 0.686 g/t gold, 2.4 g/t silver and 0.03% copper, including 43 metres of 1.81 g/t gold.
These broad intercepts were the first indication of a deep system at the Goldstorm Zone, which is located immediately to the east of Copper Belle. “The Goldstorm system continues to grow rapidly along strike to the northeast and towards the footwall contact zone to the southeast,” said Tudor Gold Exploration manager Ken Konkin in a press release on Tuesday. The best near surface intercept obtained to date on the project has been obtained from the latest hole, GS19-42. This is a vertical hole that is a 150-metre step out to the northeast from drill hole CB18-39 (0.981 g/t gold over 563.8 metres).
Konkin said the higher-grade upper portion of last year’s hole CB18-39 averaged 1.141.g/t gold over 280.5 metres, compared to the same upper mineralized horizon of GS19-42 that averages 1.268 g/t gold over a 252-metre intercept (from 63.5 metres to 315.5 metres).
On Tuesday, Tudor Gold shares jumped 8.3% or $0.05 to 65 cents on volume of 980,927. Teuton rose 2.86% or $0.01 to 36 cents on volume of 106,000.