Posted in | Gold | Mining Business

American Creek Enters into Option Agreement to Acquire Ample Goldmax Gold Property

American Creek Resources Ltd. ("American Creek" or "the Corporation") is pleased to report that it has entered into an option agreement with an arm's length third party to acquire the Ample Goldmax gold property located in southern British Columbia, Canada.

The Ample Goldmax property package spans 1,044 hectares and is located approximately 8 km west of Lillooet along and adjacent to Highway 99 South along Cayoosh Creek. The property has a long but intermittent history of gold prospecting dating back to 1866 when coarse free gold was discovered in the lower reaches of Cayoosh Creek. Prospecting naturally led upstream and in 1887 the first lode gold in bedrock was found. In 1897 the Golden Cache (Ample) mine started small scale gold production which continued until 1901.

Past historical work on the property by Homestake included the mapping of eight underground workings and also the identification of at least 10 known mineralized zones over a strike length of 3 km primarily hosting native gold with or without sulphides in mesothermal quartz vein stockworks, gold and various amounts of silver in sulphide zones, and areas with lower grade bulk tonnage disseminated type gold. Homestake conducted a small diamond drill program in 1996 and reported several intersections of gold at shallow depth including 11.76 g/t over 8.2 meters which included 1.2 meters of 66.84 g/t gold (containing visible gold) and another intersection of 21 meters of 2.75 g/t gold (December 16, 1996 Aris Report 24742.

A report prepared for Homestake by Kuran and McLeod (1997) reports that grab samples from the mine area returned up to 118 g/t gold with surface chip samples up to 6.9 g/t gold over 3 meters.

The property is being acquired through a four year option agreement with terms/payments as follows:

Year one:
$7,000 cash within 5 business days of TSX-V approval.
100,000 American Creek common shares within 10 days of TSX-V approval.
A minimum of $15,000 of exploration work conducted on the property prior to the one year anniversary of the agreement.

Year two:
$10,000 cash
200,000 common shares
$25,000 work commitment

Year three:
$15,000 cash
250,000 common shares
$75,000 work commitment

Year four:
$30,000 cash
300,000 common shares
$100,000 work commitment

The vendor will retain a 25% bulk sample royalty on any net profits American Creek receives from the extraction of a bulk sample as well as a 3% NSR which can be fully bought out anytime for $500,000 per each 1%.

All cash payments, share payments and work commitment amounts may be accelerated at American Creek's choosing.

All shares issued under this option agreement will be subject to a statutory 4 month hold period.

This agreement is subject to approval by the TSX Venture Exchange.

Darren Blaney, American Creek President & CEO stated: "We have been wanting to acquire the Ample Goldmax property package for quite some time and after almost a year of negotiating, which included the amalgamation of four separate Cayoosh Creek properties, have finally put a deal together. This is a strong addition to the Corporation's gold and silver property portfolio."

Source: http://www.americancreek.com/

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