With Nevada gold projects taking center stage in
the M&A sphere, one new gold explorer that has grabbed the attention of
industry observers is moving quickly to prove up its project.
Nevada is no slacker when it comes to massive gold mines. Barrick Gold's
Cortez Gold Mine and Goldstrike Mine each produce over 1 million ounces of
gold a year, and Newmont Mining's Carlin Operations aren't far behind.
Nevada gold acquisitions are rampant this year as well.
In the past year alone, Hecla Mining acquired Klondex Mines for a staggering
$426 million, Alio Gold acquired Nevada-based Rye Patch in a deal valued at
$128 million and Coeur Mining has just taken over Northern Empire at the cost
of $90 million. Good companies with good projects are in demand.
One company with similar geology in the same geography is just getting
started.
American Pacific Mining's flagship property is the Tuscarora Gold Project
in Elko, Nevada. "Tuscarora is similar to Klondex's Fire Creek property,
a high grade, high-level epithermal vein system," American Pacific's CEO
Warwick Smith told Streetwise Reports.
American Pacific Mining Corp. emerged from a "hot" gold company
last year.
Novo Resources Corp. (NVO:TSX.V) was one of the top gold discoveries of
2017. In mid-2017, Novo announced the discovery of gold nuggets at its
Karratha gold project in Western Australia. This was the first indication
that Novo's world-famous geologist, Dr. Quinton Hennigh, and his theory of a
massive field of gold nuggets in Western Australia may be proven correct.
This discovery propelled Novo Resources' stock price upwards. Over the
next three months following the announcement of this discovery, its stock
went from CA$0.83 to a peak of CA$8.55, an increase of about 930%. The stock
sits at CA$2.67 at the time of writing.
Early investors made handsome profits from Novo Resources.
"American Pacific Mining was founded to exploit one of Nevada’s most
promising projects," said CEO Warwick Smith.
He explained that this was American Pacific Mining's "once in a
lifetime opportunity." One of American Pacific's directors, Ken
Cunningham, knew Dr. Quinton Hennigh, president and chairman of Novo
Resources. The two sides managed to quickly cut a deal, and the Tuscarora
Gold project was optioned by American Pacific Mining Corp. for a bargain
price.
"American Pacific knew that it had 'struck gold' with the
Tuscarora project," Smith explained.
Tuscarora lies between major mining trends and gold projects in Nevada,
with a signature quite similar to Klondex's Fire Creek—a narrow vein of a
high grade gold mineralization in the heart of the state.
The company was able to tap Eric Saderholm to be its president. Saderholm
at that point was the exploration manager for the Western U.S. at Newmont
Mining Corp. (NEM:NASDAQ), the second largest gold mining company in the
world with a market cap of over $20 billion.
"Saderholm is known as one of Nevada's top geological talents and an
expert in his field. He joined the team as the company went public, bringing
decades of discovery to production experience in both major and minor
resource companies with him," Smith told Streetwise Reports.
When it comes to gold, grade is king. The Tuscarora project, has high
grades from past drilling. Historical results showed intervals of up to 180
grams of gold per tonne over 1.5 meters. Other drill holes have shown grades
of 143 grams and 74 grams of gold per tonne over widths of 1.5 meters and 3.1
meters, respectively.
The property has already produced gold, with historical production of
204,000 ounces of gold and 7.5 million ounces of silver.
American Pacific Mining Corp. moved quickly and expanded the Tuscarora
project. It increased the number of claims from 24 to 91 and the project area
from 447 acres to 1,818 acres. "We know we have something special on our
hands," said Smith.
Wall Street Window notes that American Pacific Mining's "main
target is Tuscarora, which is a high grade, early stage gold project located
in a prime precious metal district in Nevada…”
American Pacific Mining Corp. has only been publicly listed since March 8
and is moving quickly in further exploring its Tuscarora project.
Look for continued news on its exploration results.
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