American Pacific Mining acquires Broadway Gold Corp.
American Pacific Mining Corp. [USGD-CSE; USGDF-OTC; 1QC-FSE] has completed the transaction with Madison Metals Inc. and acquired all of the issued and outstanding shares of Broadway Gold Corp. [BRD-TSXV; BDWYF-OTC] from Madison. Broadway is the owner of the Madison Copper Gold Project located 38 km southeast of Butte near Silver Star, Montana, USA. The Madison Project is currently under an earn-in, joint venture agreement, whereby Kennecott Exploration Company, part of the Rio Tinto Group [RIO-NYSE, ASX, LONDON] may spend US $30 million to earn up to 70% of the Madison Project.
“The Madison Project is a very high-grade copper/gold deposit and this transaction represents a significant milestone for American Pacific Mining as we continue to build a strong portfolio of projects in the western USA. We look forward to a productive year of porphyry and skarn exploration and definition of this quality asset with our new joint venture partner,” stated Eric Saderholm, President of American Pacific Mining.
Drill results from Kennecott’s 2019 drill program are pending and should be released shortly.
Highlight intervals from the 2017 drill program include UG17-05 with 24.5 g/t gold over 30 metres, including 68.6 g/t gold over 4.6 metres and 82.9 g/t gold over 2.7 metres. Hole UG17-06returned 41.7 g/t gold over 11 metres, including 51.8 g/t gold over 4.6 metres. Hole C17-13: returned 6% copper over 4.6 metres, including 11.45% copper over 1.8 metres.
Key terms of the Transaction
APM issued 20,000,000 common shares to Madison Metals (subject to a 6-month hold period ending January 22nd, 2021). APM issued 5,000,000 warrants and, together with the APM shares, exercisable to acquire additional APM shares at a price of $0.25 per share to Madison Metals (18 month expiry). Madison Metals will add one member to the APM Advisory board
The Madison Copper-Gold Project is located in the heart of Montana’s prolific copper-gold belt. Recent interpretations identified multiple priority target areas believed to be associated with large-scale porphyry mineralization at depth and located within a well-mineralized, two-mile-long geological, geophysical and geochemical trend. The project is permitted for mining, surface and underground exploration.
The Broadway mine produced 144,000 ounces of gold from 1880-1950. The Madison mine was developed between 2005 and 2011 and generated 7,570 ounces of gold and 3,020,000 pounds of copper from bulk samples of 19,803 tons (average 0.52 oz/ton gold and 25% copper). Approximately 3,000 total feet of underground workings go to a depth of 215 feet underground. Broadway Gold Mining refurbished parts of the Madison Mine in 2017, rehabilitating the underground workings in order to access certain stopes and mineralization, allowing for a successful exploration drill program to take place as well.
Currently, known skarn mineralization, gold-bearing jasperoid and massive sulphide gold and copper mineralization is proposed to be linked to a deeper porphyry system.
American Pacific Mining Corp. is focused on precious metal opportunities in the Western United States. The Gooseberry Gold/Silver Project and the Tuscarora Gold Project are two high-grade, precious metal projects located in key mining districts of Nevada USA.