Explorer Eyes Breakthrough With Priority Copper Drilling Targets

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American Pacific Mining Corp. (USGD:CSE; USGDF:OTC) announced it has secured a drilling permit for the Madison copper-gold project 43 kilometers southeast of Butte, Montana, within the Idaho-Montana porphyry belt near the Berkley Pit mine.

The company said this achievement allows it to begin drilling on several high-priority district targets, including porphyry targets identified through comprehensive geological mapping, geophysical surveys, and 3-D modeling.

"We are very pleased to have received approval to advance the next phase of drilling at Madison," stated Eric Saderholm, managing director of exploration. "Currently, seven drill pads have been fully permitted, with another 12 awaiting approval. By organizing the program under two separate Bureau of Land Management notices of intent, we are not only managing surface disturbance more effectively but also creating the flexibility to develop a robust and district-scale drill campaign."

He said the program plans for up to 30 holes from multiple pads, including two deep 900-meter tests of the porphyry targets.

"These sites cover the property, targeting previously unexplored areas, distal porphyry anomalies, and high-grade skarn and quartz vein mineralization identified in surface sampling," Saderholm said.

According to Chief Executive Officer Warwick Smith: "The current commodities market has increased the demand for high-quality mineral projects, and we are in advanced discussions with potential partners on several properties within our portfolio. Alongside progressing towards a major drill campaign at Madison, we anticipate unlocking significant value through potential new joint venture partnerships, asset sales, and spinouts in the coming weeks and months."

Here are some highlights of the planned drilled program, as detailed by the company:

• Porphyry Potential at Depth: Deeper holes will test geophysical anomalies, such as induced polarization chargeability highs and magnetic high and low boundaries, interpreted as potential porphyry copper-gold centers beneath skarn horizons.
• High-Grade Copper-Gold Skarn Targets: Step-out drilling aims to expand known zones of copper-gold mineralization along the Silver Star structural corridor.
• Structural Extensions: Infill and extension drilling will target high-grade structures that remain open along strike and at depth.
• District-Scale Exploration: Several untested geophysical and geochemical anomalies will be evaluated to assess the broader mineralized system, including a newly identified mafic intrusion with samples containing up to 38.5 grams per tonne gold (g/t Au) and 33 g/t silver (Ag).

'The Stock Is Jumping on the News'

On the same day as the announcement, The Gold Advisor Senior Analyst Jeff Valks noted that with this milestone, "the company is gearing up to test some of its highest-priority district targets" at the Madison project.

"The Madison project has history on its side," wrote Valks.  "Small-scale mining wrapped in 2012 after producing 2.7 million pounds of copper at eye-catching grades of 20–35% copper. More recent drilling in 2017 returned standout intercepts like 30.18 meters at 24.5 g/t Au with 0.39% copper (Cu) and 10.97 meters at 41.65 g/t Au with 0.38% Cu. Neighboring Broadway/Hudson Mines once produced ~147,000 ounces at 9.9 g/t gold, and geological work now suggests these systems are linked along the same mineralized corridor."

The project itself offers a mix of near-surface skarn gold hits and the long-game chase for a porphyry system at depth, Valks wrote.

"The stock is jumping on the news, up 11% as I write," he said. "It’s now up 30% over the past 12 months."

With seven pads already permitted, twelve more pending, and the rigs lined up, the next few months should deliver plenty of news flow out of Montana, Valks noted.

"With share prices lower than usual, this might be a great time to add to your position or take your first shot at company on the edge of something potentially great," he said.

The expert noted his brokerage prevents him from purchasing any shares, but fellow newsletter writer Jeff Clark "holds a fully weighted long position."

'We Really Like' This Asset

The CEO 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.

"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. "We really like this Madison asset, and we're going to let this drill program show us what's there."

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 Literal Catalyst of the Energy Transition

Copper is essential to the energy transition because of its importance as an electrical conductor. The demand for this critical 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 explained, "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."

Swiss bank UBS forecasts that the copper supply gap will exceed 200,000 tons by 2025. Furthermore, the International Energy Forum emphasizes that to meet the growing demand, over a billion tons of new copper mining capacity will be needed annually until 2050.

Copper prices are set to rise in fall 2025, fueled by seasonal demand and ongoing supply constraints, presenting traders with lucrative opportunities, Don Dawson reported for Yahoo! Finance on October 6.

Home builders are stockpiling copper for spring construction, especially for wiring and plumbing, with demand peaking from September to March. This seasonal trend, combined with global economic factors, creates an ideal trading window, he said.

The fall buying season coincides with U.S. housing starts, which are expected to increase by 4% in 2026, according to the National Association of Home Builders. This surge in demand further tightens an already constrained market.

Meanwhile, Dawson reported that the global copper supply is projected to face a 300,000-metric-ton shortfall in 2025, due to production challenges in Chile and Peru, including labor strikes and mine disruptions.

Increasing price volatility are low inventories on the London Metal Exchange, sometimes covering less than a day's demand, Dawson wrote.

The energy transition — driven by electric vehicles, solar power, and AI-driven data centers — continues to boost demand, with copper consumption rising annually since 2020, the story noted.

Ownership and Share Structure

According to the company, strategic junior mining investor Michael Gentile owns approximately 12% of the company, and 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%, the CEO Smith with 0.46%, Saderholm with 0.24%, and Palos Management Inc. with 0.23%.

The company's market capitalization is CA$46.01 million, based on 219.09 million shares outstanding. Its 52-week trading range spans from CA$0.11 to CA$0.31.