American Eagle Gold shares fly higher on NAK copper-gold hit in BC
American Eagle Gold (TSX: AE; US-OTC: AMEGF) shares jumped as much as 85% in early trading Monday after the company reported copper intercepts in the hundreds of metres at its NAK project in British Columbia.
Hole NAK23-17 intersected 302.1 metres of 1.09% copper equivalent (0.53 gram gold, 1.27 grams silver per tonne and 0.4% copper) within a longer 606.2 metres of 0.74% copper equivalent (0.35 gram gold, 1.14 grams silver per tonne and 0.3% copper) starting at 98 metres downhole. This result extends the high-grade mineralization 250 metres westward of the previous NAK23-11 hole.
“When it comes to results like 300 metres at 1% copper, it becomes internationally meaningful,” CEO Anthony Moreau told The Northern Miner in an interview.
“Not only does it become notable in global hotspots like Chile and the Democratic Republic of Congo, but also in stable and mining-friendly British Columbia, especially in today’s political climate. That is the ‘buy signal’ our shares are reacting to today.”
American Eagle shares closed the day 45.5% higher at 40¢ – after setting a fresh 52-week high at 51¢ – giving it a market capitalization of $45.6 million.
The summer 2023’s more than 7,000 metres of drilling expanded on the 2022 program with the east-west step-out drilling, giving the team a glimpse of the potential true scale of the NAK deposit. The geologist says the project showcases signs of a vast system.
Previous shallow drilling identified a near-surface copper-gold system spanning more than 2.3 sq. km.
“The more we drill, the better NAK gets,” Moreau said. The highlight hole (NAK23-17) was a westerly step out, and a bit of a gamble, Moreau said. “This risk paid off, revealing what may be a high-grade mineralized belt that remains open to the north and the south.”
Moreau adds that the team interprets the hole as confirming the continuity of high-grade mineralization at NAK, both vertically and horizontally, building on the 2022 results of a large, near-surface copper and gold porphyry system. It builds anticipation for the company’s planned 2024 drilling campaign.
In the same release, the company said holes NAK23-13 to NAK23-16 also cut extensive copper and gold mineralization zones, including higher-grade sections, significantly expanding the North and South zones and reinforcing the potential for substantial mineral intercepts between them.
Perhaps most telling of the company’s discovery momentum is the endorsement from Vancouver-based bulk commodities giant Teck Resources (TSX: TECK.A/TECK.B; NYSE: TECK), which, unusually for its business strategy, chose to invest in American Eagle three times to take a 19% stake in the company.
American Eagle plans to expand the mineralized South Zone and explore connections between it and other high-grade areas in the NAK system. Drilling continues, particularly the extension of high-grade mineralization.
Integrating data from a recent deep-looking induced-polarization survey with historical and current geological analyses, American Eagle is solidifying plans for a full 2024 drilling program, focusing on expanding high-grade zones identified in recent drills and exploring potential connections to deeper mineralization while additional IP surveying will enhance subsurface modelling and confidence.
