Explorer Discovers Massive Copper Breakthrough in Alaska

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American Pacific Mining Corp. (USGD:CSE; USGDF:OTC) updated on the latest developments regarding its fully owned Palmer project, a rich copper-zinc-barite volcanogenic massive sulfide deposit situated in southeastern Alaska.

In a release on August 7, the company said it sees Palmer as a vital contributor to the U.S. domestic supply chain for essential minerals. Due to the project's advanced status, the company believes that the best way to enhance shareholder value is through a transaction that would expedite the asset's development.

"As global demand for copper and zinc intensifies and with increased U.S. government support for streamlining critical mineral project development, we believe Palmer is uniquely positioned as a potentially meaningful near-term supply of these critical materials," said Chief Executive Officer Warwick Smith. "With significant existing infrastructure, a robust resource base, and proximity to road and tidewater access, Palmer stands out as one of the most promising base and critical mineral assets in the United States."

Smith said given the growing significance of U.S.-based critical minerals, the company is exploring various strategic options, such as a spinout, joint venture partnership, or outright asset sale, to ensure Palmer receives the necessary capital and attention to quickly advance its development and provide immediate value to shareholders.

Meanwhile, the company is enhancing camp facilities and conducting regional surveys and sampling this summer to showcase the district's potential for tonnage and discovery.

The company said it is actively involved in merger-and-acquisition talks with potential partners and will keep shareholders informed as these discussions advance and key milestones are reached.

Following drilling in 2023-2024, the company updated its mineral estimate with notable gains, including indicated resources of 43,900 ounces gold (Au), 178 million pounds copper (Cu), 543 million pounds zinc (Zn), and 4.4 million ounces silver (Moz Ag). Inferred resources included 128,100 ounces Au, 151.5 pounds Cu, 1.04 billion pounds Zn, and 25.6 Moz Ag.

"The estimate reflects meaningful growth in contained copper — up 16% in the Indicated category and 22% in the Inferred — thanks to one of the project's most successful drilling campaigns to date," wrote Jeff Valks of The Gold Advisor, also on August 7.

"Whether American Pacific ends up spinning out, selling off, or partnering up, one thing is clear: they’re not standing still — and neither is their stock — up 75% since this time last year," Valks continued. "As explained, I do not hold a position due to some bizarre rule with my brokerage, Jeff Clark (also from The Gold Investor) is full weighting."

Exploration Planned at Project

The company said it has outlined several planned or ongoing activities at Palmer, including a phased withdrawal from the Willscot camp on-site, anticipating the lease's expiration in November 2025. This cost-saving measure is expected to reduce operational expenses by nearly US$200,000 per month while aligning with the objectives for the Palmer project's advanced-stage exploration. The Big Nugget camp has been set up to support exploration and construction teams.

American Pacific is also initiating a drone-based survey program, utilizing high-resolution photogrammetry and light detection and ranging to focus on several key prospects. Satellite imagery from 2023 and advanced spaceborne thermal emission and reflection radiometer data have revealed newly exposed bedrock and potential alteration zones that require further investigation. For instance, the Mount Henry clay prospect now has approximately 300 meters of newly accessible bedrock compared to the same area in 2004.

Historical boulder sampling by the U.S. Bureau of Mines at the MHC prospect showed that most sulfide boulders, ranging from one to six feet thick, contain 20% to 44% zinc, about 5% barium, and several percent copper, the company said. A six-foot chip sample across the largest massive sulfide boulder found assayed 33% zinc, 2.5%, 5% barium, 65 parts per million (ppm) silver, and trace gold. The historical U.S. Bureau of Mines sample results have not been verified or validated by the company and may not represent mineralization on the project.

Planned fieldwork will concentrate on the west side of the Little Jarvis glacier, targeting potential western extensions to the Palmer deposit's mineralized horizon. In the Jarvis-SP-Gullies prospect area, previous rock sampling returned high-grade copper-zinc-cobalt results ranging from trace to 2.1% copper, trace to 15.3% zinc, and 12 to 631 ppm cobalt. American Pacific said the mineralization is described as local stringer to semi-massive stratiform mineralized lenses in variably altered basalts and argillites that extend northwest over approximately 1.5 kilometers. The central portion of this trend was identified as a strong alteration cluster in the aster data interpretation.

The presence of copper-cobalt mineralization is similar to the world-class Windy Craggy copper-cobalt VMS deposit mineralization, located about 60 kilometers northwest of the Palmer project, in the same belt of host rocks, according to the company. The Windy Craggy deposit is not located on the company's project, and the information is not necessarily indicative of mineralization hosted on the company's project.

Expert 'Intrigued' by Company

Smith told a group of investing experts on Doug Casey's Experts Roundtable in April that the company is open to new deals involving its other projects — Madison in Montana, and Ziggurat, Tuscarora, and Gooseberry in Nevada.

"We like all of these projects, if we had all of the capital in the world, we would drill them all," Smith told the group, part of Casey's due diligence series featuring experienced investors like Casey, Mickey Fulp, Adrian Day, and Brent Cook. "But we want to be smart with what we're doing. So, we're actually looking at" turning them into joint ventures.

Smith assured the panel that American Pacific is dedicated to its new direction with Madison and is actively seeking a new opportunity for the Palmer project. "We really like this Madison asset, and we're going to let this drill program show us what's there," he stated.

Byron King expressed his interest, noting that it seemed like American Pacific really has "this thing wrapped up." He added, "I'm frankly intrigued by what you're doing out there. With the right couple of drill holes, you could really explode this thing in a good way."

Moderator Matt Smith commented that with all the potential catalysts, it seemed like there were numerous factors that could significantly impact the company this year.

The Catalyst: A Crucial Role in Energy Transition

Copper plays a crucial role in the energy transition due to its significance as an electrical conductor. The pursuit of this vital metal "has been accelerating, as companies involved in all parts of the copper supply chain realize the structural supply deficit," according to Rick Mills, author of the newsletter Ahead of the Herd. Mills noted, "They understand the need to find sources — existing mines, expansions, brownfield projects, greenfield projects, etc. — and are making deals to acquire the base metal, which is not only essential to electrification and decarbonization but industry in general."

The Swiss bank UBS projects that the copper supply shortfall will surpass 200,000 tons by 2025. Additionally, the International Energy Forum highlights that to satisfy the increasing demand, over a billion tons of new copper mining capacity will be required each year until 2050.

The Copper Monthly Metals Index (MMI) experienced a slight uptick, increasing by 1.18% from July to August, positioning current copper prices just above their April lows, according to a post by Metal Miner on Oilprice.com on August 11.

July turned out to be the most unpredictable month for Comex copper prices. As is often the case with unexpected market developments, the White House's decision to adjust copper tariffs to include copper products led to a sharp decline in the index's prices at the end of the month, the report said.

The market began factoring in potential tariffs at the start of the year. By late February, there were rumors of impending copper duties and an investigation into copper imports, which many believed would lead to tariffs on all copper forms, including refined copper, copper input materials, and copper products, Metal Miner noted. This speculation was particularly bullish for the Comex contract, causing a divergence between Comex and LME prices. In July, Trump not only confirmed the tariffs but also set the duty rate at 50%, effective August 1, which was both higher and sooner than anticipated.

Ownership and Share Structure

According to the company, strategic junior mining investor Michael Gentile owns approximately 14% of the company, and about 8% is owned by insiders and management. About 15% is with institutions, the company has said. The rest is retail.

Refinitiv noted that major shareholders include Merk Investments LLC with 1.37%, Chief Executive Officer and Director Warwick Smith with 0.46%, Managing Director of Exploration and Director Eric Saderholm with 0.24%, and Palos Management Inc. with 0.23%.

The company's market capitalization is CA$39.06 million, based on 219.09 million shares outstanding. Its 52-week trading range spans from CA$0.07 to CA$0.23.