American Pacific Mining Announces that Rio Tinto has Commenced Drilling at the Madison Copper Gold Project and Grants Options

Rhea-AI Summary

American Pacific Mining Corp (CSE: USGD / FWB: 1QC / OTCQB: USGDF) has initiated the drilling phase at its Madison Copper Gold Project in Montana, USA, as part of a joint venture with Rio Tinto Group's Kennecott Exploration. The first diamond core drill has arrived, with plans for up to 4,000 meters of drilling targeting areas identified through geophysical surveys and historic data. Additionally, the company has granted 1,800,000 stock options at an exercise price of $0.27, effective for five years.

Positive

• Commencement of drilling at Madison Project, indicating continued exploration.
• Joint venture with Rio Tinto allows for substantial investment ($30 million) to earn a 70% stake, enhancing financial backing.
• Planned total of 4,000 meters of drilling shows commitment to extensive exploration.

Negative

• None.

VANCOUVER, British Columbia, May 27, 2021 (GLOBE NEWSWIRE) -- American Pacific Mining Corp (CSE: USGD / FWB: 1QC / OTCQB: USGDF) (“American Pacific” or the “Company”) is pleased to announce that the Rio Tinto Group (“Rio Tinto”) has commenced drilling at the Company’s Madison Copper Gold Project (the “Madison Project”), located in Montana, USA. The first diamond core drill arrived on site this week and began drilling the first targets.

The Company’s wholly-owned Madison Project is currently under an earn-in with an option to joint venture agreement, whereby Kennecott Exploration Company (“Kennecott”), part of the Rio Tinto Group, may spend $30 million USD to earn up to 70% (see news release dated June 26, 2020).

Eric Saderholm, President of American Pacific stated: “American Pacific is pleased to announce the 2021 exploration program at the Madison Project has entered the drilling phase with the arrival and set-up of the first core drill rig. This is the third year of exploration on the property by Rio Tinto/Kennecott Exploration. Numerous targets are planned to be drill-tested based on many factors including geophysical surveys, the success of historic drilling, mapping, modeling and newly encountered surface geologic interpretations and expressions. This will be a dynamic exploration season at Madison.”

The original drill plan called for both diamond drilling and reverse circular drilling. The plan has now been updated to accommodate two diamond drills. The total program will consist of up to 4,000 metres of drilling.

Figure 1: Drilling at the Madison Project 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4e40a7e5-b4c0-431e-83af-784ef9568ee9

The Company also announces that it has granted 1,800,000 incentive stock options (the “Options”) to certain directors, officers and consultants in accordance with its stock option plan. The Options are exercisable at $0.27 for a period of 5 years from the date of grant.

About American Pacific Mining Corp.

American Pacific Mining Corp. is a gold explorer focused on precious metals opportunities in the Western United States. The Madison Mine in Montana, under option to joint venture with Kennecott Exploration Company, is the Company’s flagship asset. The Gooseberry Gold-Silver Project and the Tuscarora Gold Project, are two high-grade, precious metals projects located in key mining districts of Nevada USA. The Company’s mission is to grow by the drill bit and by acquisition.

On Behalf of the Board of American Pacific Mining Corp.

“Warwick Smith”
CEO & Director

Corporate Office: Suite 910 – 510 Burrard Street Vancouver, BC, V6C 3A8 Canada

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

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FAQ

What is the current status of the Madison Copper Gold Project (USGDF)?

The Madison Copper Gold Project has commenced drilling activities as of May 27, 2021.

Who is conducting the drilling at American Pacific's Madison Project?

The drilling is being conducted by Rio Tinto Group's Kennecott Exploration Company.

What is the investment arrangement between American Pacific and Rio Tinto for the Madison Project?

Rio Tinto may invest $30 million to earn up to 70% interest in the Madison Project.

How many stock options has American Pacific granted recently?

American Pacific has granted 1,800,000 stock options exercisable at $0.27 for five years.