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ARCPACIFIC TRENCHES 36 METRES OF 1.03 GOLD EQ. (Au & Ag) IN FIRST EVER TRENCHING AT BLACKDOME

Vancouver, BC ‐ ArcPacific Resources Corp. (“ACP” or the “Company”) (TSX-V: ACP) is pleased to report that the entire length of both trenches…

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This article was originally published by Inside Exploration

Vancouver, BC ‐ ArcPacific Resources Corp. (“ACP” or the “Company”) (TSX-V: ACP) is pleased to report that the entire length of both trenches completed at the Blackdome project (the “Property”) in British Columbia, Canada, showed anomalous to high-grade gold and silver values. With the both trenches returning grater than 1 gram per tonne (“g/t”) gold equivalent (“AuEq”) (using gold and silver values only) over their entire lengths, and up to 7.35 g/t gold over a 1-meter segment. These results confirm epithermal-style gold-silver mineralization at the Property and indicate that it is likely responsible for the 1 by 2-kilometre gold-in-soil anomaly (see Figure 1 below). Geochemical evidence (including elevated antimony, arsenic and mercury) also suggests that the level of exposure is at a high level within the epithermal system, leaving significant potential for the entire extent of the precious metal or gold rich portion of the system to be intact.
Highlights

  • High grades of gold, up to 8.23 g/t, are associated with epithermal quartz veining showing vuggy, bladed, crustiform and colloform textures.
  • A high-grade gold sample of 8.37 g/t was returned from silicified siltstone indicating the potential for broader zones of mineralization to exist within proximal permeable geological units.
  • There is no record the Property has ever been drilled.
  • Abundant quartz vein float observed along the main ridge are likely from nearby sources.
  • Gold and silver grades are associated with antimony (Stibnite) indicating the system is only exposed at a high level possibly leaving the best potential bonanza grade and stockwork zones below and intact.
    Adrian Smith CEO of ACP comments, “We are very pleased with the results from the first-pass program that was able to generate meaningful results, this speaks volumes for the potential at the Property. We are confident that we are sitting on an epithermal gold silver system existing within the bounds of the Property and based on the geochemical signatures, it looks like we are still sitting above what could potentially be the bonanza grade portion of the system. Based on these positive initial results we have now begun the permitting process
** Entire length of trench.
1) Gold Equivalent (Eq)was calculated with the following metal prices; Gold (Au) $1800/oz and Silver (Ag) $25/oz. All metals reported in USD and calculations do not consider metal recovery.
2) Intervals taken as chip samples along approximate mineralized trends; true widths are unknown at this time.
3) Antimony values are not included in the Gold Equivalent (AuEq).
4) Antimony values are capped at 1% due to sample values exceeding assay limitations of 1%.
Projection in UTM NAD83 Z10.
Total number of samples 79, average grade of all samples0.49g/t Au.
Figure 1: 2021 Sample and Trenching Location Map over historic soils and geology.

Due to the limited scope of this initial program, only 2 of 6 known target areas were tested, and over 80% of the Property remains untested. Test pitting along the top of the ridge area was unsuccessful in reaching bedrock where historical float samples have run up to 19.3 g/t gold.


The elongated and unvegetated ridge is the center of the1 by 2-kilometre open-ended gold in soil anomaly (shown above), where the next phase of planned work will require mechanical trenching or drilling to properly test the multiple target areas within this wide anomaly.

Figure 2: Trench ACP-BDT-21001; View (looking uphill)along trench showing broken outcrop and subcrop including outcrop of broken mineralized quartz vein (bottom center).

The hand trenching completed in this program represents the first trenching completed on the Property. Trenching locations were selected based on historic soil, grab and outcrop samples, where the historic samples include up to 54 grams per tonne gold in rocks and over 4 grams per tonne in soils.Based on the location of the float samples along the crest and margins of the broad ridge, it is probable that they are also locally derived.

Figure 3: Sample D365253; Float sample showing vuggy bladed and sugary quartz typical in epithermal gold-silver deposits.

The samples taken as part of the first-pass program (see table 2 above) were predominantly quartz and quartz carbonate vein material often displaying epithermal characteristics including crustiform, colloform, chalcedonic,banded, bladed, and vuggy textures and locally including up to 1% sulphides.Massive stibnite was also observed in 1–4-centimeter seams in quartz vein margins in the Stibnite Zone.

Figure 4: Geological Model (from Buchanan (1981)) of an epithermal gold-silver system. Showing the possible current surface and relative exposure level high in the system as indicated by the elevated arsenic and abundant stibnite associated to some of the gold and silver mineralization present at the Property.

Substantial grades of antimony (often exceeding the assay limit of 1%) along with the elevated levels of arsenicindicate the epithermal system is exposed at a high level as shown in the Blackdome Geological Model above (see Figure 4). This model is based on a type-example of a Low Sulphidation (“LS”) epithermal system and suggests that that the best gold and silver grades are still located in a potential bonanza grade zone below. There is no record that the Property has ever been drilled.

The Property covers a prospective 3,479 hectares over an epithermal gold-silver exploration target in Southern, British Columbia. The Propertyis60 kilometres south of the 1.6-million-ounce gold Newton deposit, 20 kilometres south of the 5.3-billion-pound copper and 13.3-million-ounce gold New Prosperity deposit and 65 kilometres north of the prolific Bralorne gold camp in southern,British Columbia which has produced over 4 million ounces and remains as an active gold mining camp.

QAQC

All samples were submitted to ALS Laboratories in Vancouver, British Columbia, Canada and analyzed using 4-acid digestion with ICP-MS finish for multi-element analysis and Au 30g fire assay with ASS for gold values. Standards, duplicates, and blanks were included as part of the laboratories independent QAQC procedure.

Disclosure

The Qualified Person (“QP”) for the Company has not verified the historic sample analytical data disclosed within this release. While the Company has obtained all historic records including analytical data from the previous owners of the Properties and from various government databases, the Company has not independently verified the results of the historic sampling.

Adrian Smith, P.Geo., is a QP as defined by National Instrument 43-101 for the above-mentioned project. The QP is a member in good standing of the Engineers and Geoscientists of British Columbia (EGBC) and is a registered Professional Geoscientist (P.Geo.). Mr. Smith has reviewed and approved the technical information disclosed above.

About ArcPacific Resources Corp.

ArcPacific Resources Corp. (TSX-V: ACP) is a Canadian based exploration company expanding the exploration initiative at multiple historic past producing gold and silver mines in the Timmins Gold Camp, Ontario, and in the Nicola Mining Division in Southern British Columbia. The Company is focused on creating shareholder value through new discoveries and strategic development of itsmineral properties. For further information, please visit http://www.arcpacific.ca.

ON BEHALF OF THE BOARD OF DIRECTORS

/S “Adrian Smith”

CEO and Director

Precious Metals

Metalstech encounters visible gold at Sturec drilling

 
The drill program on its fully owned Sturec gold project in Slovakia is now in full swing and although it is too early to expect assay results, Metalstech…

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The drill program on its fully owned Sturec gold project in Slovakia is now in full swing and although it is too early to expect assay results, Metalstech (MTC.AX) already provided a quick interim update after the drill bit intersected visible gold in hole 17. This hole is an infill drill hole meant to follow up on hole 14 where Metalstech encountered 10 meters of almost 17 g/t gold within a broader interval of 43 meters of 4.88 g/t gold and 11.8 g/t silver.

Hole 17 is an underground drill hole, drilled from Drill Chamber 2, and the hole is located close to the pit outline used in the 2021 mineral resource update As you can see on the image above, the location of hole 17 is important as it will basically be able to validate the findings in hole 10, 13, 14 and perhaps even hole 5 which ended at the bottom of the pit outline.

We will obviously have to wait for the official assay results from the lab which could be expected in a few weeks.


Disclosure: The author currently has no position in Metalstech. Metalstech is a sponsor of the website. Please read our disclaimer.

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Economics

How Evergrande the parent hurt Evergrande New Energy

One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily…

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One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily real estate development but also new energy, property services and health amongst other industries.

Keen market observers would be aware of the Chinese government’s recent crackdown on various industries. Most headlines have been focused around the tech giants and the for-profit education sector, but has also involved online gaming companies (gaming restrictions), the steel industry (push for decarbonisation) and most recently Macau casinos. It has also maintained its tightening bias toward the property sector, which has further dampened the prospects for rebar steel, and by extension iron ore.

Property cycles are nothing new in China, with development and prices waxing and waning based on policy and availability of credit and partially responsible for cyclical price movements in iron ore. The most recent slowdown however seems to have hit the highly indebted Evergrande extremely hard, as unravelling confidence in its ability to repay its lenders (split between onshore and offshore) has sparked a sell-off in both its bonds (now trading at 30 cents on the dollar) while the company’s equity value, which peaked at a market capitalisation of over US$50 billionn and was as high as US$47 billion in June last year is now just US$4.4 billion.

One of the more interesting subplots has been the fate of its New Energy Vehicle group, a listed subsidiary in which the China Evergrande parent owns 65 per cent. Early in the Evergrande Saga, the Group proposed selling a stake in its new energy vehicles (NEV) subsidiary as one way to reduce its debt load. In January 2021, the group sold a ~11 per cent stake in the subsidiary to six investors, valuing the business at ~US$34 billion. Amazingly, this transaction – along with the hype surrounding the potential EV market in China and the company showcasing 6 new cars – triggered a furious rally which saw the share price rise 140 per cent in under 3 weeks, while its market cap peaked at US$85 billion despite not selling a single car (shades of Nikola in the US, albeit the NEV subsidiary also holds Evergrande’s legacy assets in the healthcare space and was formerly known as Evergrande Health Industry Group).

China Evergrande New Energy Market capitalisation

Screen Shot 2021-09-17 at 2.48.49 pm

Source: Bloomberg

As concerns around its parent deepened, “investors” became concerned around the potential fate of its subsidiary with the Parent’s 6.35 billion NEV shares seen as a potential source of liquidity. This has seen a stunning collapse in Evergrande NEV’s market cap by ~US$80 billion since mid-April and has also caused liquidity issues in the NEV arm which just reported losses of more than US$742 million.

A good reminder to pay heed of any potential contagion and ripple effects, albeit most are hidden and only discovered after the fact (as well as the obvious lessons on the highs and lows of “investing” in pockets of extreme exuberance).

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Precious Metals

Inca One Gold: Gold Prepayment Facility Expected To Continue To Drive Results

When it comes to the gold market, presently, headwinds are rather less than exciting. With the metal currently unable to
The post Inca One Gold: Gold Prepayment…

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When it comes to the gold market, presently, headwinds are rather less than exciting. With the metal currently unable to return to new high’s that were hit last summer, the sector has, understandably, been hit with the doldrums. But that’s not to say that good opportunities don’t exist within the space as it stands today.

One such example, would be Inca One Gold (TSXV: INCA). A metal processor based in Peru that is focused on working with artisanal miners, the firm has been hit with two negative tailwinds over the the last several months, despite neither of those tailwinds actually having an impact on the firm operationally. The first, the loss of interest in the gold market by investors, is well known across the sector, and has been felt by any operator touching the metal. The second, is the election cycle that saw a less than favourable candidate elected to helm the country.

In terms of these two headwinds, the first hardly has to be acknowledged at this point. Despite endless money printing globally, gold and silver are perhaps the two commodities that have stopped moving to the north, and instead have sputtered over the last several months. How long this continues is a gamble at best – but that isn’t to say that the present pricing is tough on producers by any stretch, with record or near-record revenues constantly being announced every quarter by operators.

The second, headwind, the election in Peru, is more specific to Inca One than other players in the global metals market. Earlier this year, the country elected Pedro Castillo as President, the seventh President in the last decade, and the fourth President in a matter of twelve months. He won with just 50.13% of the popular vote.

A left-winger, Castillo lists his careers as a schoolteacher, and union leader, along with being a politician. With political views so far left that he has had to emphasize that he is not communist, its fair to say that certain sectors in the country were reasonably worried about their future. However, on the topic of mining, he supports the industry “where nature and the population allow it,” however he desires to increasing taxation where possible. Effectively, he has come to the realization that the industry is a major driver in the country for employment.

Despite these two headwinds, the operations of Inca One appear to be thriving – the company has produced record results this year in terms of monthly production, with production set to only increase as a result of recent events.

The month of May for the company saw some of the strongest production figures in history for the company, with 3,538 tonnes of ore being processed, resulting in an average of 118 tonnes per day, and a total of 2,219 ounces of gold produced, with the latter being a 94% month over month increase.

Production in June faired even better, marking a new record for the company – 5,183 tonnes of ore processed, beating a prior record set in December 2019 of 5,177 tonnes. The average per day processing during the month meanwhile worked out to 173, more than double the 86 tonnes per day processed in March 2021.

The significant scaling of production is largely attributed to what the company refers to as a US$2.45 million gold prepayment facility, which it received in March. The facility effectively enabled the firm to acquire the working capital required to purchase the ore needed for processing, resulting in significant growth for the operation. While that loan was shorter-term in nature with repayment occurring this past summer, the notable aspect is that such a low figure was able to drive production in a meaningful way.

Fast forward a few months to August 2021, and the company has secured a much more meaningful gold prepayment facility – US$9.0 million – with much more favourable terms. The arrangement provides for up to $6.0 million in initial capital, which the firm can use to scale its operations immediately, through the purchase of further ore to be processed.

The company as a result has indicated that it intends to maintain production at a range between 175 to 225 tonnes per day, thereby providing consistency to its results, with the target of achieving profitability.

This level of production is significant. In the prior fiscal year, the firm averaged around 100 tonnes per day of production beginning in the second quarter. For the full year, the firm processed 31,656 tonnes of ore, which ultimately translated to revenues of US$30.1 million for the year ended April 30, 2021. The firm is well on the path to improving these figures for fiscal 2022, having produced 27.5% of this annual figure in just two months this year.

From a valuation perspective, things appear to be slightly “out-of-whack,” if you will. With a market capitalization of C$12.59 million as of Friday’s close, and 2021 revenues of C$38.8 million, the gold processor is trading at 0.32x topline revenues – an anomaly in a market so focused on stretched valuations based on topline results.

If history is any indication, the multiple on Inca One may become even more wild if the latest prepayment facility continues to deliver for the company.

Inca One Gold last traded at $0.34 on the TSX Venture.


FULL DISCLOSURE: Inca One Gold Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Inca One Gold Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

The post Inca One Gold: Gold Prepayment Facility Expected To Continue To Drive Results appeared first on the deep dive.

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