American Pacific Mining Corp (“American Pacific” or the “Company”) is delighted to declare that its 2023 drill program has started at the Palmer Project (“Palmer” or the “Project”), an advanced-stage, high-grade volcanogenic massive sulfide-sulfate (“VMS”) situated in the Porcupine Mining District of the Haines Borough, Alaska.
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The drill program will concentrate on multiple high-priority targets. It is a main element of the Company’s US $25.5 million 2023 exploration program supported by joint venture partner Dowa Metals & Mining Co., Ltd (“Dowa”).
At the Southwall Zone, the 9,000 meters (“m”) resource infill drill program was developed to start the process of promoting mineral resources from Inferred to Measured and Indicated. An Indicated mineral resource of 4.68 million tons grading 5.23% zinc, 1.49% copper, 30.8 grams per tonne (“g/t”) silver, 0.30 g/t gold, and Inferred mineral resource of 5.34 million tons grading 5.20% zinc, 0.96% copper, 29.2 g/t silver, 0.28 g/t gold are hosted by the Palmer Deposit (Southwall and RW Zones).
Our drill program this year has been designed with two primary goals: to delineate the high-grade portion of the deposit to further define the mineral resource estimation methodology as we look to convert mineral resources into mineral reserves in future feasibility studies; and to expand our mineral resource base with step-out and directional drilling in the Southwall Zone. This year’s programs will lay the foundation for the engineering and evaluation work ahead. In addition, the knowledge gained from these programs will provide new insights into the potential for new high-grade discoveries throughout the mineralized district.
Peter Mercer, Senior Vice President, Advanced Projects
The joint venture partner of the Company, Dowa, has committed to financial support with US $25.5 million for the 2023 program. Before October 31, 2023, to reduce or avoid Project dilution, American Pacific has the option to pay its pro-rata share of 2023 program expenses—completely or partially.
Dilution is pro-rated as per every party’s relative contributions to Project expenditures and will be identified upon finishing the 2023 program. The operator of the Project is American Pacific and will get seven percent (7%) of qualified program expenses for managing the 2023 work program.
About the Palmer Project
A potential advanced-stage superior VMS project is the Palmer Project. It is situated inside the Porcupine Mining District of the Haines Borough, Alaska. Functioned in a joint venture partnership between American Pacific, the Company is a 100% possessed subsidiary of Constantine North Inc. with 41% possession as the manager (operator) and with 59% possession Dowa Metals & Mining Co., Ltd (Dowa).
US $68.7 million has been invested in environmental programs and in exploration work to responsibly progress the Palmer Project as of December 31, 2022—hosting a National Instrument 43-101 compliant mineral resource of 4.68 million tonnes of 10.2% zinc equivalent (3.9% copper equivalent) in the Indicated category and 9.59 million tonnes of 8.9% zinc equivalent (3.4% copper equivalent) in the Inferred category.