American Pacific shares surge on significant copper results from Palmer VMS project
Shares of American Pacific Mining (CSE: USGD) skyrocketed Thursday after the company released the third and final batch of assay results from its 2023 drill program at the Palmer project in Alaska.
Palmer represents an advanced-stage, high-grade volcanogenic massive sulphide (VMS) deposit held under a joint venture partnership with Dowa Metals & Mining, owner of Japan’s largest zinc smelter. The $20 million resource definition and geotechnical program in 2023 was funded by Dowa, which has a 55% interest in the JV.
The company said the 2023 drill program successfully targeted high-priority areas in two mineralized lenses, Zone 1 and Zone 2-3, which together make up the South Wall zone of the Palmer deposit.
The final batch of assays consisted of 13 drill holes completed in three separate zones. Among them were the four most significant copper drill intersections reported to date at Palmer, along with significant zinc, gold and silver results.
The best two were: 43.8 metres grading 6.54% copper, 3.15% zinc, 0.42 g/t gold and 27.97 g/t silver; and 23.9 m grading 9.03% copper, 3.49% zinc, 0.83 g/t gold and 41.75 g/t silver, both drilled in Zone 1. The highlight result from Zone 2-3 was 39.8 metres grading 1.11% copper, 4.34% zinc, 0.45 g/t gold and 32.45 g/t silver.
“The final assay results from Palmer’s 2023 resource definition drilling have exceeded expectations with tremendous copper grades and aggregate metals values over significant widths,” Peter Mercer, American Pacific SVP of advanced projects said in a news release.
The company is now incorporating all 2023 results into its 3D geological model to locate priority drill locations for the 2024 program. “This year’s drilling will provide valuable insights as we re-evaluate and rank the numerous VMS showings throughout the mineralized district,” Mercer said.
The 2023 drilling also extended the copper-zinc mineralization beyond the Palmer deposit’s current mineral resource estimate, consisting of 4.7 million tonnes grading 1.49% copper, 5.23% zinc, 0.30 g/t gold and 30.8 g/t silver in the indicated category and 5.3 million tonnes grading 0.96% copper, 5.2% zinc, 0.28 g/t gold and 29.2 g/t silver in the inferred category.
According to a 2019 preliminary economic assessment, the copper-zinc resource at Palmer is expected to have support an 11-year mine operation (plus a two-year pre-production period) with a post-tax net present value (discounted at 7%) of $266 million and internal rate or return of 21%.
Shares of American Pacific Mining shot up by 30.8% by midday Thursday on the latest Palmer drill results. The company has a market capitalization of C$66.8 million ($49.7m).