Explorer American Eagle Gold’s (TSXV: AE; US-OTC: AMEGF) NAK copper-gold discovery in British Columbia may be early stage, but the project has both investors and its own geologists excited.
During a late September site visit to the project, 80 km northwest of Smithers, project geologist Neil Prowse showed The Northern Miner core shack tables decked in freshly drilled core.
“Look here and along all the way to here – visually, it looks like we’ve again intersected bornite and chalcopyrite – those high-grade copper ores most sought after by copper explorers,” Prowse said as he traced his finger along a blue-grey line of high-grade copper mineralization (see video).
While last year’s drilling highlighted significant depth potential and larger, albeit lower grade, near-surface mineralization than previously known, a different interpretation is now emerging.
“Last season, by drilling deep, we discovered high-grade mineralization on the NAK property, transforming its reputation from a near-surface, lower-grade deposit to a potential high-grade mineralization hub,” Prowse said at the site, where a single drill was closing out the summer drilling program.
Prowse is bullish about the summer’s 7,000-metre drilling campaign’s findings, showing the team is on the right track. They also got two shots in the arm from recent investments by a local copper major.
American Eagle Gold project geologist Neil Prowse says the summer NAK drill program has enhanced the team’s understanding of the deposit. Credit: Henry Lazenby
Previous shallow drills identified a near-surface copper-gold system spanning more than 2.3 sq. km.
On Sept. 19, the company reported impressive results from hole NAK23-11, which showed an intersection of 102 metres grading at 1.04% copper equivalent from 317 metres depth within a broader 473 metres intercept grading 0.62% copper equivalent.
On Sept. 14, the company reported that hole NAK23-09 (known as the ‘Teck Hole’) uncovered a new mineralized zone 650 metres east of the previous drilling areas, intersecting 117 metres of 0.4% copper equivalent from 16 metres depth and opening up further discovery potential for the project.
According to company president and CEO Anthony Moreau, the Teck Hole drew excitement because it is located at a similar distance from the known porphyry stock as the area where American Eagle drilled in 2022, and it lies within the high chargeability halo and on the fringes of the magnetic high.
Geophysically speaking, its characteristics mirror those of the western step-out drill hole NAK23-08.
“In essence, the Teck Hole represents an exceptional geophysical target with the capability to introduce significant scale to the project,” Moreau said.
And scale is what the industry wants. Industry insiders often comment that B.C.’s new porphyry discoveries tend to lack scale despite the province hosting world-class porphyry copper mines such as Teck’s Highland Valley mine near Merritt.
These results build on the Aug. 9 release of hole NAK23-08, which showed 776 meters at 0.5% copper equivalent. This hole revealed that the northern trending mineralized zone is broad and extends significantly to the west from surface to depth. Moreau said the hole highlighted the project’s potential, stating that they’ve just started understanding how mineralization behaves at depth.
The NAK deposit is in the Stikine Island Arc Terrane of B.C. and linked to the Eocene-aged Babine Intrusive Suite, which also hosts several other copper-gold deposits such as Bell (from where hydropower is available), Granisle, Morrison, Hearne Hill and Dorothy/Duke copper-gold deposits.
Some of the NAK project’s core samples showcase rich mineralization, featuring elements like bornite, which holds 60% copper by weight, and hypogene chalcocite, with an impressive 80% copper content. “These samples hint at a robust porphyry system, making us optimistic about the project’s future,” Prowse added.
Perhaps most telling of the company’s discovery momentum today 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 twice in two months this summer to take a 19% stake in the company.
“Having this investment from Teck actually supports us and gives us a lot more credibility than if we were just doing it on our own,” Moreau said.
Despite coming off its recent high at 33.5¢ per share, as of Oct. 3 at 22¢, American Eagle traded 633% above its year-earlier level, having touched 2¢ on the way up. It has a market capitalization of $22.5 million.
Summer momentum
On a site visit just as the first Fall snow fell on the imposing peaks of Smithers, about 80 km southeast of the project, The Northern Miner toured American Eagle’s camp, core shack and NAK project site to see what the excitement was all about.
At the Babine camp, a multi-use facility shared by various forestry and mining teams at times and used as the operating base by American Eagle from where it accesses the NAK prospect, the camp was empty on this late September afternoon – the yellowed aspens signalling the end of the field season for most. But at the back of the camp in the core shack, the small geology team under Prowse’s watchful eye quietly carries on with the business of sending samples out to the assay laboratory.
NAK core samples are ready to be sent to the assay laboratory. Credit: Henry Lazenby
Prowse said the company was preparing drilling the last holes of the season before it would withdraw from the site, despite the team being able to work the NAK property year-round.
“We want to review all the data we’ve gathered this season and develop high confidence that we’ll continue to hit high-grade sulphides at depth with each new hole when we return next year,” Prowse said.
So far, the company has been releasing a steady news flow of drill results this summer as it expands the previously known margins of the deposit.
Prowse said each release of assay results represents a considered step towards tracing the margins of an underexplored porphyry intrusion.
Early believers
Moreau told The Northern Miner that delineating a copper-gold discovery at NAK had become a personal goal.
“My uncle, the late Gary Artmont, who was part of the team that mapped and discovered the Grasberg copper-gold mine in Indonesia – one of the world’s most profitable mines – convinced me to take on the project,” he said in a separate interview.
“He (Gary) once commented that NAK was the second-best geophysical target he had ever seen in his career. Take it with a grain of salt, and let our results speak for themselves,” Moreau said.
Uncle Gary Artmont with a young American Eagle CEO Anthony Moreau. Credit: Anthony Moreau
Moreau’s belief in the site is based on its mineral potential and the legacy of his uncle’s vision. “The only reason I got my hands on it was because of my uncle. He believed it would offer us a genuine chance of success,” Moreau shared.
Sadly, Artmont passed away a year before the first drill results would vindicate his hunch and prove that mineralization, at least worthy of a follow-up drill program, was present at the site.
Confirming scalability
From Babine Camp, we drove about 60 km up the Jinx forest service road to the active drill rig on site, where ITL Diamond Drilling operators Kyle Sochaski and Ryan Stabner were eager to demonstrate part of the drilling process.
About 100 metres away, another person cleared space in the scrub for the last drill pad of the season, NAK23-17, where drilling is expected to start shortly.
ITL Diamond Drilling operators Kyle Sochaski (left) and Ryan Stabner were eager to demonstrate part of the drilling process. Credit: Henry Lazenby
Prowse said the company will study and interpret the summer program’s drill results in the winter months before deciding on its 2024 priority targets.
Moreau anticipates at least one more year of detailed drilling before calculating an initial resource.
On the social engagement front, the company signed an expanded exploration agreement with the Babine Lake Nation.
This five-year agreement allows for exploration and includes the First Nation’s involvement in environmental work as the parties work towards achieving mutual growth.
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