RAYMOND, Alberta, April 22, 2014 (GLOBE NEWSWIRE) -- The Golden Triangle mineralization area of NW British Columbia has hosted and continues to produce some impressive discoveries. In the past, names associated with the area such as Eskay Creek, Galore Creek, Red Chris and many others drew great investor attention and made companies such as Barrick a household name. After 1997, with no Eskay type discoveries as well as infrastructure issues, and a mining unfriendly NDP government resulting in a lack of financing, the area went quiet.
Investors should note that given recent activity, the area is once more coming alive in a big way.
"With the successful conclusion of 4 years of litigation involving our Treaty Creek property in NW BC, we want to move the project forward," stated Allan Burton, President and CEO of American Creek Resources (TSX-V:AMK) (OTCBB:ACKRF). "Past work on the property and the fact we are situated in the same hydrothermal system as elephant discoveries in the area, gives management confidence that Treaty Creek could potentially deliver a world-class deposit."
Two examples of large recent finds in the area are those by Seabridge and Pretium, one of which borders AMK's Treaty Creek property and Pretium which is within 2 kilometers. If one combines the claims of these adjacent companies, there are 130 million ounces of gold plus 800 million ounces of silver, 20 billion pounds of copper and several other metals. In a modest 12-kilometre circle, the combined value, depending on commodity prices, could exceed $300 billion.
"BC's Golden Triangle has come alive again, with at least five world-class mining projects headed toward production. Having already delivered millions of ounces of gold and tens of millions of ounces of silver, the region ranks as an important mineral district. Yet, that production represents only a tiny fraction of the metal now known to be hosted in the district." Lawrence Roulston Report; August 2012.
Pretium's Valley of the Kings deposit has shown recent results that are compelling, including 0.5 meters that carried 41,582 grams per tonne gold (1.6 feet at 1,213 ounces per ton of gold). Another hole hit 2,393 g/t gold and 1,605 g/t silver over 10.7 meters (70 ounces gold and 47 ounces of silver per ton over 35 feet). Numerous intersections have exceeded 1,000 g/t, grades rarely seen in gold deposits.
Seabridge's KSM property, with the Iron Cap deposit 800 meters from Treaty Creek, has P&P of 38 million ounces of gold, 10 billion pounds of copper and 191 million ounces of silver. Drilling continues to expand the resource. Inferred resources note a further 21 million ounces gold, 10 million pounds copper and 139 million ounces silver. Grades average .55g/tonne for P&P and .41g/tonne for Inferred.
Seabridge has a current share price of $8.00 with a market cap of $379 million. Pretium trades at $6.00 with a market cap of $660 million.
American Creek trades at $0.08 with a market cap of $11 million. While there is some risk should an appeal be successful, AMK appears a decent speculation.
Given that both peer properties either border or are within a few kilometers of Treaty Creek, which on its own is larger than both properties combined, AMK management is confident that the project has world-class potential.
The Treaty Creek property hosts the same rock units and structural features that are related to the vast mineral deposits on the properties to the south. The structural trend appears to continue on to the Treaty Creek property.
Surface sampling and the drilling in 2009 outlined two mineralized zones that look similar to the porphyry copper- gold mineralization on the Seabridge property. Drilling by American Creek on the Copper Belle zone encountered 241 meters that averaged 0.8 grams per tonne, ending in mineralization. That grade and width are in line with the resources on the adjacent property.
Further, Treaty Creek's GR2 Zone hosts gold, silver and base metals in a volcanogenic massive sulfide (VMS) setting similar to the Eskay Creek deposit, just 15 kilometers to the northwest, which was one of the highest grade major gold-silver deposits in the world. Results of drilling in the GR2 zone included 5.4 g/t gold over 14 meters along with silver and base metal values.
Seabridge also wants to construct twin tunnels at a length of 22.8 km to connect its KSM property to its proposed mill site. Roughly half the tunnel distance goes directly under AMK's Treaty Creek. Over and above any deal made for the tunneling, any exploratory holes drilled to establish the route would provide AMK with exceptional geological data.
While the adversary in the Treaty Creek litigation has announced it intends to file an appeal, AMK management is confident the Court's decision will be upheld. AMK's share price almost doubled upon the recent Court finding for the Company.
At current levels, the shares are a bet on AMK successfully concluding the litigation and ultimately an option on both Treaty Creek and the Golden Triangle as a whole. Since the property sits in the middle of some of the largest—and ongoing--discoveries in the world, it may well appeal to risk-oriented investors who side with management that Treaty Creek will eventually be a world-class deposit.
The evidence, so far, is certainly compelling.
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CONTACT: American Creek Resources (TSX-V: AMK OTC:ACKRF) Box 798 53A Broadway North Raymond Alberta T0K 2S0 Canada (403) 752-4040Source:American Creek Resources