American Creek Sees Gold in Seabridge’s Plans
By James West
Jan, 13th
 American Creek Resources (TSX.V:AMK) is betting that its proximity to Seabridge Gold’s (TSX:SEA, NYSE AMEX: SA) KSM deposit is going to be a contributing factor to the future value of its shares.
“There are two very compelling reasons for investors to look at American Creek Resources right now,” according to company CEO Allan Burton. “The first is the geological quality of our claims, and the second is the fact that our Treaty Creek property is contiguous with one of the largest gold-copper deposits in the world. The company involved in developing that resource, Seabridge Gold, has made clear its intention to build twin access tunnels to their property through ours.”
Burton is referring to one of the world’s largest undeveloped gold / copper deposits, the Mitchell deposit, part of Seabridge’s 100% owned KSM project (Kerr-Sulphurets-Mitchell). The KSM deposits contain a NI 43-101 compliant measured and indicated resource of 38.9 million ounces of gold and 10.0 billion pounds of copper, and an inferred resource of 10.4 million ounces of gold and 2.6 billion pounds of copper. The mineralized trend underlying the KSM project (Seabridge), and the adjoining Snowfield deposit owned by Silver Standard (TSX:SSO, NASDAQ: SSRI), appears to continue north through the Treaty Creek property.
In March, 2007, American Creek Resources entered into an agreement with Teuton Resources Corp. (TSX.V:TUO) for the controlling interest in the Treaty Creek property. American Creek was granted an option to earn a 51% interest by spending $5 million on exploration over three years. A further 9% interest (bringing the total interest to 60%) may be earned by funding a positive feasibility study. American Creek completed its earn-in in September, 2009 by conducting a 9,500m program on Treaty Creek. “Running a program of close to 10,000m has accomplished a number of key things for us. Not only did we complete our earn-in, but we were able to define and expand our primary targets,” says Burton.
The primary targets referred to are a few of the numerous showings of gold-silver-base metal mineralization and widespread hydrothermally altered zones found on the property. American Creek drilled three main areas of significant exploration potential on the property in 2009: a gold-silver epithermal mineralized zone within the Treaty Gossan (Eureka); a gold-copper-molybdenum porphyry mineralized zone (Copper Belle); and a gold-silver-zinc-lead-copper VMS system (GR2). The final assays for the 2009 program were released earlier today and can be found in their press release TREATY DISCOVERY HOLE RUNS 241 METRES OF 0.80G/T GOLD. You can also see a short video concerning the press release by clicking here.
Historic drilling on these zones, including 5,400m in 2007, shows similar gold grades to more advanced deposits in the area. This is not surprising, as many of the deposits in the trend line were created by the same geological events.
A promising new volcanogenic massive sulphide (VMS) discovery containing several high grade intersections of gold, silver and base metals was made during extension drilling on the GR2 zone. This deposit has three distinct sub-parallel mineralized structures enriched with gold, silver, copper, lead and zinc. The 2009 highlights include gold intersections as high as 5.44 g/t over 14.5 metres (hole GR2-7) (including 1.5metres @ 17.29 g/t gold) and silver intersections as high as 2,280.0 g/t over 0.50 metres (GR2-1). Hole GR2-4 contains numerous enriched intervals including 0.40 metres with 2.85 g/t gold, 1,350 g/t silver, 10.3% lead and 3.63% Zinc. The drilling extended the continuity of the three different sub-parallel mineralized structures interpreted from 2007 drill core.
The Copper Belle is a bulk-tonnage type gold-copper-molybdenum porphyry deposit. A significant discovery was made in hole CB-14 which contains 0.80 g/t gold over 241.7 metres including 1.44 g/t gold over 54 metres with the hole ending in mineralization. This is the longest interval of gold drilled to date at Treaty Creek and compares favourably with holes reported by both Seabrige Gold (KSM) and Silver Standard (Snowfield). Other significant intersections can be found in today’s press release.
Seabridge Gold has repeatedly stated that in order for the KSM to go into production, twin 21.5 km tunnels would need to be constructed to transport ore from the KSM project, which is immediately south of the Treaty Creek property, to a mill and tailings pond to be constructed northeast of the Treaty Creek property. These proposed tunnels pass through the heart of Treaty Creek’s West Nunatak which hosts multiple mineralized zones, including the GR2 and Copper Belle. Over 13,000m of drilling has been conducted by American Creek on these primary deposits in the last three years.
“We have had no formal negotiations with Seabridge, but we anticipate such discussions will occur in the future to the benefit of American Creek’s shareholders,” said Burton. Access through Treaty Creek is a critical component for the KSM to go into production as outlined in Seabridge’s Preliminary Economic Assessment released September 10, 2009. Seabridge currently has no legal interest in the Treaty Creek claims and American Creek has not granted Seabridge access to tunnel through the claims. According to American Creek, access would be granted only on terms maximizing value to American Creek’s shareholders.
Silver Standard recently announced a significant resource increase in the Snowfield deposit located 2.5 km south of the Treaty Creek property in the same valley and adjacent to the Mitchell deposit. The Snowfield/Brucejack project now has a measured and indicated resource of 23.8 million ounces of gold with 116.3 million ounces of silver, 2.3 billion pounds of copper, and 174 million pounds of molybdenum. It also has an inferred resource of 14.9 million ounces of gold with 115.2 million ounces of silver, 1.5 billion pounds of copper, and 116 million pounds of molybdenum.
Seabridge Gold announced yesterday that KSM's Mitchell zone (at 33.7 million ounces of measured and indicated gold resources) now ranks as the largest gold deposit ever found in Canada. When you consider that Silver Standard’s Snowfield deposit (at 19.7 million ounces of measured and indicated gold resources) adjoins the Mitchell, the total resources are really quite staggering. These deposits, both located in the valley bordering the Treaty Creek property, are some of the largest gold / copper deposits in the world and are why American Creek acquired the Treaty Creek property in the first place.
The announcement of a high power transmission line to the area by Prime Minister Harper on September 16, 2009 is also significant. It should remove one of the major hurdles for many existing large scale projects in the area like the KSM (Seabridge), Snowfield (Silver Standard), Red Chris (Imperial Metals), Schaft Creek (Copper Fox), and Galore Creek (NovaGold / Teck). It will also encourage more development in this highly prolific area.
“Besides the Treaty Creek project, American Creek completed a drill program on its Ironmist project last November,” said Burton. This potential iron ore / vanadium deposit has excellent logistics with a highway, railway, and high transmission power lines running through the property.
The company conducted a comprehensive field program consisting of mapping, geochemical sampling, and ground geophysics on the Ironmist project in 2008. The program focused on a very large magnetic anomaly identified in a previously flown airborne survey. Initial results indicate potential for an iron ore / vanadium deposit of massive high grade magnetite in three separate zones.
A drill program completed in 2009 tested these zones at depth. All seven holes drilled intersected magnetite mineralization with several holes ending while still within magnetite-rich zones. Assays on the 2009 drill program are pending.
The company’s other principle property is the Electrum project, located in the “Golden Triangle” approximately 45km north of Stewart, British Columbia, near past operating mines including the Riverside, Scotty Gold, Granduc, and Silbak-Premier. The Electrum encompasses the historic East Gold mine which produced an average of approximately 50 oz/t gold and 75 oz/t silver (hand mined). Significant 2006-2007 drill results included 440 grams of gold per tonne and 400 grams of silver per tonne over 0.52 meters, as well as additional elevated silver values of 420 grams of silver per tonne over 0.91 metres and 384 grams of silver per tonne over 0.70 metres. Several other intervals ranged from 100 to 200 grams of silver per tonne. The Electrum is road accessible and is only 45km from concentrate shipping port facilities located in Stewart.
The company’s head of exploration, Raul Sanabria, has been active in mining and mineral exploration in Spain, Western Africa and Canada in a broad variety of mineral deposits. The board and advisors contribute over 200 years experience and have been involved in taking numerous mines into production.
American Creek's exploration on the Treaty Creek project continues to show promising geology similar to the other more advanced deposits in the area (see today’s press release by clicking here). This geology, together with Treaty Creek’s location next to two of the world’s largest gold / copper deposits, puts American Creek in an enviable position going into 2010.
Follow American Creek’s progress on their web site at www.AmericanCreek.com.
SOURCE: http://www.midasletter.com/news/10011301-American-Creek-sees-gold-in-Seabridges-plans.php
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