American Pacific Commences Drill Program at Its Palmer VMS Project in Southeast Alaska

Rhea-AI Summary

American Pacific Mining has started a 2024 diamond drill program at its Palmer Copper-Zinc VMS Project in Alaska, in partnership with Dowa Metals & Mining. The 2023 exploration program reported significant findings, with copper intersections at 6.54% and 9.03% over various lengths. The 2024 program aims to expand the known mineralized area and explore regional prospects, with a budget of CAD $17.5 million (USD $12.8 M) for a 5,100-metre drill program. CEO Warwick Smith and Senior VP Peter Mercer expressed optimism about the project's potential in critical metals.

Positive

• Significant high-grade copper findings in 2023, including 43.8m of 6.54% copper and 23.9m of 9.03% copper.
• Initiation of a comprehensive 5,100-metre drill program for 2024.
• Budget allocation of CAD $17.5 million (USD $12.8 M) for exploration and development.
• Strong partnership with Dowa Metals & Mining.
• Ongoing efforts to expand the known mineralized envelope and explore regional prospects.

Negative

• High exploration and development budget of CAD $17.5 million puts financial pressure.
• Dependence on the success of the 2024 drill program to justify previous investments.
• Potential risks associated with the expansion of mineralized areas and regional prospects.

Vancouver, British Columbia--(Newsfile Corp. - June 18, 2024) - American Pacific Mining Corp (CSE: USGD) (OTCQX: USGDF) (FSE: 1QC1) ("American Pacific" or "the Company") is pleased to announce that it has initiated a 2024 diamond drill program at its high-grade Palmer Copper-Zinc VMS Project ("Palmer" or the "Project") in Alaska, with joint-venture partner DOWA METALS & MINING ALASKA LTD. ("Dowa").

"We are excited to begin this year's drill program at Palmer," commented CEO, Warwick Smith. "In a world that is recognizing the importance of critical metals, the impact and value that a polymetallic project with demonstrated high-grade copper, like Palmer could have, should not be understated. With drilling now underway on two of our key projects, we look forward to providing regular drill results in the coming weeks and months."

The highest-grade copper intersections ever drilled in Palmer's history — including 43.8 metres of 6.54% copper and 23.9 metres of 9.03% copper (see January 10, 2024 news release) — were reported during the 2023 exploration program. The 2024 drill plan will follow up on the structural trends interpreted to be associated with these significant results, while also testing the deposit extensions to expand the known mineralized envelope.

"The 2023 exploration program was an operational success with the high-grade copper and zinc results exceeding our expectations," commented Peter Mercer, Senior Vice President - Advanced Projects. "I am incredibly proud of the technical team's efforts over the past year and have full confidence in their capabilities to continue advancing Palmer through 2024 and beyond. In addition to the diamond drill program, our team will follow up on the numerous regional prospects to further demonstrate the exploration upside and district potential of the Palmer Project."

American Pacific, along with its joint venture partner at Palmer, Dowa, plans to spend approximately CAD $17.5 million (USD $12.8 M) on exploration and development work, including a 5,100-metre drill program in 2024.

Qualified Person Statement

The technical information in this news release regarding the Palmer Project has been reviewed and approved by Michael Vande Guchte, P.Geo., Vice President of Exploration for the Palmer Project and a Qualified Person (QP) as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About American Pacific Mining Corp.

American Pacific Mining Corp. is a precious and base metals explorer and developer focused on opportunities in the Western United States. The Company has two flagship assets: the Palmer Project, a Volcanic Massive Sulphide-Sulphate (VMS) project in Alaska, under joint-venture partnership with Dowa Metals & Mining, owner of Japan's largest zinc smelter; and the Madison Project, a past-producing copper-gold project in Montana. For the Madison transaction, American Pacific was selected as a finalist in both 2021 and 2022 for 'Deal of the Year' at the S&P Global Platts Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories. Also, in American Pacific's asset portfolio are high-grade, precious metals projects located in key mining districts in Nevada, USA, including the Ziggurat Gold Project and the Tuscarora Gold-Silver District. The Company's mission is to grow by the drill bit, strategic partnerships and M&A.

On behalf of the American Pacific Mining Corp Board of Directors:

Warwick Smith, CEO & Director
Corporate Office: Suite 910 - 510 Burrard Street
Vancouver, BC, V6C 3A8 Canada

Investor relations contact:

Kristina Pillon, High Tide Consulting Corp.
604.908.1695 / Kristina@americanpacific.ca

Media relations contact:

Adam Bello, Primoris Group Inc.
416.489.0092 / media@primorisgroup.com

Full disclosure can be found in our NI 43-101 Technical Report for the Palmer Project at www.americanpacificmining.com.

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213306

FAQ

What is the focus of American Pacific Mining's 2024 drill program?

The focus is on expanding the known mineralized envelope and testing deposit extensions at the Palmer Copper-Zinc VMS Project.

How much is American Pacific Mining spending on the 2024 drill program?

The company is spending approximately CAD $17.5 million (USD $12.8 M) on the 2024 drill program.

What were the significant copper findings in Palmer's 2023 exploration program?

The 2023 program reported intersections of 43.8 meters at 6.54% copper and 23.9 meters at 9.03% copper.

Who are American Pacific Mining's partners for the Palmer Project?

American Pacific Mining is partnering with Dowa Metals & Mining for the Palmer Project.

What is the total drill length planned for American Pacific Mining's 2024 program?

The 2024 drill program plans to cover 5,100 meters.