American Pacific Mining Corp. has reported that, further to its press release dated April 14th, 2020, it has finalized the transaction with Madison Metals Inc. and has secured all of the outstanding and issued shares of Broadway Gold Corp. from Madison Metals.
The owner of the Madison Copper-Gold Project close to Silver Star Montana, USA, is Broadway. At present, the Madison Project is under an earn-in, joint venture agreement, according to which the Kennecott Exploration Company, which is a part of the Rio Tinto Group, might pay out $30 million USD 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.
Eric Saderholm, President, American Pacific Mining Corp.
The results of drilling from Kennecott’s 2019 drill program are still pending and may be released soon.
Following are the highlight intervals from the 2017 drill program:
- C17-13: 6% copper over 4.6 m (from 123.4 m), which includes 11.45% copper over 1.8 m (from 124.4 m)
- UG17-05: 24.5 g/t gold over 30 m (from 8.2 m), which includes 68.6 g/t gold over 4.6 m (from 22.8 m) and 82.9 g/t gold over 2.7 m (from 9.1 m)
- UG17-06: 41.7 g/t gold over 11 m (from 8.2 m), which includes 51.8 g/t gold over 4.6 m (from 9.1 m)
Key Terms of the Transaction
- APM distributed 20,000,000 common shares to Madison Metals (subject to a 6-month hold duration, which ends on January 22nd, 2021).
- APM distributed 5,000,000 common share purchase warrants that can be exercised to achieve more APM common shares at a cost of $0.25 for every share to Madison Metals (18-month expiry).
- One member will be added to the APM Advisory board by Madison Metals.
Madison Metals will issue the purchase warrants to its shareholders as per their pro-rata shareholdings in Madison Metals.
About the Madison Copper-Gold Project
Situated at the heart of Montana’s prolific copper-gold belt, the Madison Copper-Gold Project is located just 38 km southeast of the world-famous Butte Mining District. The project is a high-grade Cadia-like, skarn-over-porphyry system that covers a total of 2,514 acres, including 136 unpatented mineral claims and 6 patented lode claims.
Latest analyses found various priority target areas considered to be related to large-scale porphyry mineralization at depth and situated inside a 2-mile-long, well-mineralized, geophysical, geochemical, and geological trend. The project is open for surface and underground exploration, as well as mining.
Between 1880 and 1950, the Broadway mine yielded 144,000 ounces of gold. The Madison mine, which was developed from 2005 to 2011, has yielded 3,020,000 pounds of copper and 7,570 ounces of gold from bulk samples weighing 19,803 tons (average 0.52 ounce/ton Au and 25% Cu).
In total, about 3,000 feet of underground workings reach a depth of 215 feet underground. In 2017, certain portions of the Madison Mine were refurbished by Broadway Gold Mining Ltd., during which the underground workings were rehabilitated access specific stopes and mineralization, there enabling a successful exploration drill program.
At present, familiar gold-bearing jasperoid, skarn mineralization, and huge sulfide gold and copper mineralization are proposed to be associated with a deeper porphyry system.