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American Eagle reports first drill result from NAK copper project; stock soars

Credit: Adobe Stock

American Eagle Gold (TSXV: AE) has released assay results from the first hole of its 2022 program on the NAK project located in the Babine copper-gold porphyry district of west-central British Columbia.

NAK represents a classic porphyry copper-gold target where the current 5,000-metre drill program is testing the potential for a mineralized footprint greater than 1.5 x 1.5 km that was open and completely untested at depth. The drill targets were developed from recent ZTEM, IP and airborne magnetic surveys.

According to American Eagle, NAK’s known copper-gold porphyry mineralization is defined by a compelling geophysical signature analogous to Newcrest’s Red Chris mine and Newmont’s Tatogga project located in northwest BC.

Assay results from hole 1 confirm and expand upon NAK’s historically discovered copper-gold South zone, which typically shows strong gold and copper results beginning at the bedrock surface. Mineralization is best developed in the hole between 29.3 metres (depth to the bedrock beneath glacial overburden) to 155.5 metres, returning 125.78 metres of 1.02 % copper equivalent. It remains strong until a depth of 251 metres (221.28 metres at 0.68% copper equivalent).

All five holes drilled on NAK have so far intersected broad intervals of porphyry-style mineralization from surface to end-of-hole, the longest of which was 984 metres. The strike length of mineralization encountered in the five holes measured 730 metres, and is open in multiple directions. Results for holes 2 through 5 are still pending.

“Our objective at NAK is to discover a world-class copper-gold deposit with a high-grade core at depth. Today’s results exceeded our expectations,” CEO Anthony Morea said in a news release. “We have encountered mineralization in every hole and intersected a wide, high-grade interval from surface on the first hole. The bounds of the system are entirely unknown, including depth extensions of high grade.”

The company also noted that the current drill program has been expanded a further 2,000 metres to define geometric extent of a potentially significant copper-porphyry system.

Shares of American Eagle Gold shot up nearly six-fold at Monday’s close following the new drill results, trading at C$0.22 after hitting a 52-week high of C$0.24 a share.

The gold-copper junior has a market capitalization of over C$13.1 million ($9.7m).