American Pacific Mining: High-grade projects in premier US jurisdictions position this explorer to make the most of gold’s newfound momentum

For American Pacific Mining (CSE:USGD) Chief Executive Officer Warwick Smith, forming a close partnership with the world’s second-largest mining company speaks volumes about the junior explorer’s growth and investment potential.

Smith’s team completed a transaction in 2020 that can in every way be described as a company-maker, when it acquired the past-producing Madison Copper Gold project in Montana. Madison is being explored under a joint venture with Kennecott Exploration, which is part of the Rio Tinto Group. 

“It’s huge validation for the project,” Smith says. “The majors these days are using the juniors as their exploration arms. They’re not funding their own exploration. They’re looking to the American Pacifics of the world, going, ‘Hey, these guys are onto something. Let’s fund them.’”

Through an earn-in agreement already in place at the time of acquisition, Rio Tinto can spend up to US$30 million for 70% of Madison. That’s something that Smith and President Eric Saderholm, a boots-on-the-ground geologist and veteran mining executive, never imagined would happen on their first attempt to purchase the project.

“We went to look at Madison in 2016. We really liked it and wanted to buy it,” Smith says, noting that between 2008 and 2012 the project produced 2.7 million pounds of copper and 7,570 ounces of gold at high grades.

“But before we got a chance to negotiate on it, another group bought the asset. They did a great job. They came in and drilled into the porphyry, which was a big deal and that got Rio Tinto excited,” he explains.

In 2021, Kennecott completed US$2.7 million in exploration, which included 10 diamond drill holes totaling 3,598 metres, targeting extensions to the project’s skarns and jasperoids. The drilling identified new zones of skarn-hosted massive sulphides, underscoring the potential for bonanza-style gold mineralization.

Highlights from the drill program include one hole which returned 14.44 grams per ton gold and 0.11% copper over 6.53 metres, including 39.57 grams per ton gold and 0.28% copper over 2.35 metres. The next step for Kennecott is to create a comprehensive 3D model of Madison’s skarn environment to direct the next drilling phase.

But what makes the deal, which cost American Pacific C$2.4 million, even sweeter is that it has been highlighted by S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets.

American Pacific was selected for 2021 as one of four finalists in the S&P Global Platts Global Metals Awards program in the Deal of the Year category. Even though his company lost out to winner Cleveland-Cliffs, Smith said American Pacific could not have asked for better recognition than being put in the spotlight with some of the biggest and most successful companies in the world.

“It was a significant nod of approval on what we think can be a world-class asset with world-class service in a smaller company,” he says.

Smith notes that the value of the company has grown significantly, making it one of the top percentage gainers among gold mining stocks on the Canadian Securities Exchange in 2021.

The CSE has helped us get to that point and it is the right exchange for us to list on and it’s been the right exchange to grow on,” Smith explains. “It’s been great for the company and has been great for shareholders as well.”

American Pacific’s profile is further bolstered by the presence of former hedge fund manager Michael Gentile. He is the company’s largest shareholder, with a 19.9% stake.

Also in the company’s project portfolio are two highly prospective high-grade assets: the Tuscarora gold project and the Gooseberry gold and silver project, both located in Nevada, a famously mining-friendly state.

American Pacific has two other assets in Nevada as well: South Florida and Red Hill. Smith says the company plans to partner up via joint ventures to further the projects.

At Tuscarora, near the town of Elko, Smith says the company is spending C$5 million on a 70-hole drill program. The 4,272 acre project consists of numerous high-grade gold vein targets, including the Grand Prize Target, from which the company reported high-grade samples of 21,032 grams per ton gold and 38,820 grams per ton silver in 2021.

“We’re the first company to ever own it all, which is a big deal. We’re focused there,” Smith says. “We think it’s got the opportunity to be big.”

As for Gooseberry, the company is planning sampling programs and eventual drilling of parallel vein targets within a low sulphidation, epithermal vein system. The mine sits close to the historic Comstock Mining District outside Reno, where discovered lodes and veins led to the production of 8.6 million ounces of gold and 192 million ounces of silver.

“The mine hasn’t been touched since 1991 when it was last in production. We staked it. It was available and cost us C$20,000 to pick it up,” Smith says. “We spent about a million and a half dollars there. We’re up there working again doing the sampling.”

However, Smith explains that it may be time for American Pacific to move beyond acquiring exploration targets as he, Saderholm and the rest of the management team mull growing the company by taking advantage of merger and acquisition opportunities.

“It gives us a chance to think big. I’m not interested in purchasing another exploration project,” he says. “If I were to do something on the M&A side, I’d want to double the size of the company overnight. That’s the type of M&A that we’re looking to do.”

Looking ahead to the rest of 2022, Smith says the company is focusing its energy, and decidedly healthy treasury, on developing Madison, Tuscarora and Gooseberry.

“All three of those have the opportunity to be large multi-million-ounce deposits that we feel that we can grow to meet the desire of majors,” says Smith.

This story was featured in the Canadian Securities Exchange magazine.

Learn more about American Pacific Mining at https://americanpacific.ca/.

Alixe Cormick and Darcy Krohman on Proposed “Changes” to 43-101 | PDAC | The CSE Podcast Ep26-S2

In a special episode recorded during the PDAC conference, the CSE’s Anna Serin is joined by CSE Listings Manager & In-House Geologist Darcy Krohman and Alixe Cormick, a lawyer at Venture Law Corporation, to discuss the request for feedback on the 43-101 mining legislation, including its background, the potential for modernization, and ESG accountability. The conversation also addresses what is being asked of mining companies to submit and suggestions to involve investors.

About Alixe Cormick
Alixe Cormick is Founder of Venture Law Corporation and a practicing public company lawyer. Alixe’s law practice is transaction oriented and weighted towards industrial, technology and biotechnology companies located in North America and Asia.

About Darcy Krohman
Darcy Krohman is CSE’s Listings Manager and In-House Geologist. He works at the unique intersection of finance, mining, and public markets. His career in mining first started with the UBC, and he has also worked for mines in the Coastal Mountains of BC and on Vancouver Island.

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Fathom Nickel: Past-producing property containing several of today’s highly sought-after metals is attracting attention for good reason

Fathom Nickel (CSE:FNI) is, first and foremost, a high-grade story.  There is a reason that the company managed to raise $11.5 million last year before going public on the Canadian Securities Exchange in May 2021. That reason is the historic Rottenstone nickel deposit. 

Nestled in northern Saskatchewan, Fathom’s Albert Lake project is home to the formerly producing Rottenstone mine, which yielded eye-popping nickel grades of over 3% during the 1960s. 

Fathom acquired the property in 2015 during the bottom of the nickel cycle and has since expanded its holdings in the area. Today, Albert Lake consists of over 90,100 hectares, of which more than 80,000 remain virtually unexplored. The company plans to apply modern exploration methods on the property in a bid to prove that those historic grades were no fluke.

Chief Executive Officer Brad Van Den Bussche and Vice President Exploration Ian Fraser founded the company in 2015 with the goal of acquiring highly prospective battery metals projects in favourable jurisdictions. They spent time in the US early on, going from conference to conference in the battery technology space to get a feel for which metals were going to be needed as technology advanced. It was nickel that won the day.

“Ian and I both had some experience with Albert Lake and Rottenstone from years ago, so we knew the asset had had very high-grade nickel, copper, PGE’s (platinum group elements)  and cobalt,” Van Den Bussche explains. “And we were able to get it at the bottom of the nickel market for a very good price. Basically, we picked up the core property for some shares and a royalty that we recently bought back.”

According to Van Den Bussche, it was indeed the grades that first attracted them to the project.

“It was a combination of the grades and the mineralogy – the type of minerals that were in the mix. There’s a built-in hedge having nickel, copper, platinum/palladium and cobalt in there,” the CEO says. “It’s one of the highest grade nickel deposits mined in Canada.” 

Globally, there is a handful of very high-grade nickel deposits, such as Norilsk in Russia. Closer to home, the Raglan mine in Quebec and Voisey’s Bay in Newfoundland both stand out. The Rottenstone grade was essentially as good – or even higher – than some of the biggest economic deposits currently in operation. Fathom’s team believes that Albert Lake’s geological setting  supports the thesis that the Rottenstone is one of several variable size, high-grade nickel deposits similar to the multiple deposits that make up the Raglan nickel camp.

Not all nickel deposits are created equally, of course. There are essentially three types of nickel sources: limonite ore, saprolite ore and nickel sulphide ore. Currently, nickel sulphide is the preferred source to develop high purity Class 1 nickel which goes into creating nickel sulphate required for battery production. The pathway to creating Class 1 nickel from limonite and saprolite ores is more costly and typically creates a much larger environmental footprint.

It should come as no surprise that Albert Lake is a sulphide deposit. From the outset, sulphide opportunities were the focus for Fathom’s team.

“From Day One, we were focused on sulphide deposits,” Van Den Bussche says. “Our mandate is to look for electric vehicle battery minerals that are high in grade, particularly nickel. Nickel sulphide deposits are basically the main pathway to Class 1 nickel, which is necessary in the production of stainless steel and the EV/battery components.”

The mineralization of the historic Rottenstone deposit is unique and contains several notable associated metals. Initial sample metallurgy indicates metal recoveries of greater than 90% nickel, copper and cobalt are possible – all essential ingredients for the green economy. Furthermore, initial studies indicate recovery in excess of 80% can be expected from palladium and platinum.

Things look encouraging at the historic Rottenstone deposit, but with 80,000 hectares left to explore, the challenge for Fathom is to find out whether those grades extend throughout the property. The original deposit itself was small, which doesn’t faze Van Den Bussche, but he knows that the team must prove there is more there than just Rottenstone.

“We need to focus on understanding the system,” Van Den Bussche says. “Those kinds of high grades have to come from a very large system. There’s just no way in the geological model concept that you can have those kinds of grades without a large melting pot. The Rottenstone mine has to be one deposit within a much larger system.”

To that end, Fathom is planning an airborne electro magnetic survey and follow-up ground geophysics to zero in on prospective drill targets this year. A key part of its exploration activity is utilizing a portable Vanta XRF Analyzer (pXRF) to provide real-time litho-geochemical, multi-element data on core from current drill holes, and on historical drill core left by previous operators.

The pXRF results confirm the presence of nickel and copper in present and historic drill cores, and assay results will also test for the presence of platinum group elements, a significant component of the historic Rottenstone deposit that is not detectable via the pXRF. 

Saskatchewan may not seem like the first place a company would visit to explore for nickel, but the province is quickly emerging as a leading global mineral jurisdiction. The Fraser Institute’s annual investment attractiveness survey ranked Saskatchewan in third place in 2020, with a particular spotlight on the province’s mineral potential. The prolific Trans-Hudson Corridor runs directly through the province then veers east to cover northern Manitoba, northern Quebec, northern Labrador and across to Greenland. 

What has held Saskatchewan back from developing its own world-class base metal deposits has historically been, in part, the political situation. But that has changed completely in the last 20-plus years, according to Van Den Bussche. 

“During much of the 1970s and 1980s, a Saskatchewan Crown Corporation (SMDC) had the rights to become up to a 50% partner in exploration projects in the province. While a lot of exploration and development was occurring next door in Manitoba, many exploration companies chose not to take on a government partner and explore in Saskatchewan during this period,” Van Den Bussche explains.

“But that has completely changed and now Saskatchewan is a great jurisdiction to work in. There is a lot of opportunity, and it’s getting a lot of interest from many companies, including the majors. Rio Tinto is a major explorer in the province, and BHP is starting to look as well – they already know Saskatchewan because they’re a big player in the potash industry. Saskatchewan is in the right place in the system, and it’s got the potential to have continuations of some of the Manitoba base metal opportunities, including nickel.”

Fathom is operating during a wild time in the nickel industry. The silvery-gray metal is an essential component in electric vehicle batteries, and manufacturers are scrambling to secure safe supplies. As the green energy economy ramps up, so too does nickel demand – so much so that in early 2022, trading was suspended on the London Metals Exchange after nickel prices breached the $100,000 per tonne mark.

For Van Den Bussche, the dynamics of the current nickel market point to the necessity of developing a safe, stable supply of the metal within North America.

“There is definite urgency to try to lock up some supply of nickel from mines that are currently producing, but also to feed the supply chain two, three, four or five years out. Good projects in good jurisdictions that have a pathway to growing a resource and getting into production are essential. I think there’s going to be a huge move to gain control of the raw materials needed for these strategic businesses.”

This story was featured in the Canadian Securities Exchange magazine.

Learn more about Fathom Nickel at https://fathomnickel.com/.

Canadian Securities Exchange Magazine: The Mining Issue – Now Live!

Welcome to the latest issue of Canadian Securities Exchange Magazine, your source for in-depth stories of entrepreneurs from a wealth of different industries.

The more the world changes, the more entrepreneurs seek out new opportunities to adapt. No industry has shown a capacity for resilience quite like the mining industry has, and the CSE has witnessed firsthand the resurgence in interest in mining and exploration companies going public.

In this issue of Canadian Securities Exchange Magazine, we highlight individuals and companies who are helping to provide opportunities in the mining space closer to home. We shine a spotlight on a mining-focused diversity and inclusion expert and six publicly-listed mining companies on the CSE that are putting the pedal to the metal to meet demand. 

The CSE-listed companies featured in this issue include:

Check out Mining Issue of Canadian Securities Exchange Magazine here:

Sean Kingsley on the Current State of the Mining Industry | The CSE Podcast Ep25-S2 (Asian Heritage Month 2022)

In a special episode for Asian Heritage Month, the CSE’s Phillip Shum is joined by Enduro Metals (CSE:ENDR) Director of Communications Sean Kingsley to discuss his journey to a successful career in mining, his advice for young people, and the challenges he faces at his job. The conversation also addresses what Asian Heritage Month means to Sean and the influence of his Chinese heritage on his perspectives.

Here’s an overview of what Phillip and Sean discuss in this edition of the “Exchange for Entrepreneurs” podcast:

00:00 – Introduction and family background
03:40 – Professional background
05:15 – Getting into the mining space
07:10 – The most exciting part of the job
08:50 – Advice for anyone who wants to get into the industry
10:55 – How has your Asian heritage shaped the person you are today?
13:25 – Any traditions that you are especially proud of?
17:30 – The state of discovering new minerals/metals
20:30 – What does Asian Heritage Month mean to you?
22:30 – Final message and contact information

About Sean Kingsley
Sean Kingsley provides strategic consultation to private and publicly listed junior resource companies. He has 15 years’ experience within the mineral exploration, mining and development sector specializing in corporate development, strategic marketing, consultation, investor relations/awareness & capital raising. Mr. Kingsley has a strong grass-roots & a global investor network, a firm understanding of the financial markets and experience in utilizing diverse methods for public communications globally.

Learn more about Enduro Metals at https://endurometals.com/.

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Ruth Chun on Being Korean-Canadian in the Capital Markets | The CSE Podcast Ep24-S2 (Asian Heritage Month 2022)

In a special episode for Asian Heritage Month, the CSE’s Phillip Shum is joined by Entheon Biomedical (CSE:ENBI) Director Ruth Chun, M.A., J.D. to discuss her journey to a successful career in law and cannabis, her advice for young people, and the importance of Asian representation in leadership roles. The conversation also addresses what Asian Heritage Month means to Ruth and how her Korean heritage informs her decision-making.

Here’s an overview of what Phillip and Ruth discuss in this edition of the “Exchange for Entrepreneurs” podcast:

00:00 – Introduction and Background
03:06 – How Ruth became involved in Hollard Insurance Company of Namibia
06:30 – Ruth’s inspiration behind working in the field
07:55 – Advice for someone who wants to enter the field
11:15 – The three most important things people should know about your culture
14:40 – Interesting hobbies you have that people should know about
16:01 – Role models and Asian representation in popular culture
18:25 – What does Asian Heritage Month mean to you?

About Ruth Chun
Ruth Chun is a lawyer focused on advising regulated businesses in the cannabis, psychedelics, natural resources, and energy industries from start-up to exit. Ms. Chun currently serves on several boards including Entheon Biomedical Corp. (CSE:ENBI) and is the chairperson of SAVIS of Halton. She served as the first female executive at a leading insurer in southern Africa as the head of legal and compliance and was a partner at Africa’s largest law firm. Previously, she chaired Rio Tinto’s pension fund for Rössing Uranium Mine and was a trustee of the Alexander Forbes umbrella group of funds. She received an Hon BA (Trinity College), MA from the University of Toronto and Juris Doctor from Queens University. She is called to the bar in Ontario, New York and Namibia.

Learn more about Entheon Biomedical Corp. at https://www.entheonbiomedical.com/.

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Anish Chopra on Bringing Diversity to Wealth Management | The CSE Podcast Ep23-S2 (Asian Heritage Month 2022)

In a special episode celebrating Asian Heritage Month, the CSE’s Phillip Shum is joined by Anish Chopra, Managing Director and Portfolio Manager at Portfolio Management Corporation, to discuss his journey to a successful career in wealth management, his advice for young people entering the industry, and why diversity is so important for fostering new insights. The conversation also addresses what Asian Heritage Month means to Mr. Chopra.

Here’s an overview of the discussion in this edition of the “Exchange for Entrepreneurs” podcast:

00:00 – Introduction and Background
05:35 – What inspired you to work in accounting?
08:45 – Advice for others who want to join the industry
11:35 – How has your heritage shaped your identity?
14:00 – What does Asian Heritage Month mean to you?
14:55 – What are some talents or skills that most people don’t know you have?
16:10 – Social media links and website information

About Anish Chopra
Anish is a Managing Director and Portfolio Manager covering global equities and fixed income at Portfolio Management Corporation, a boutique investment management firm for high net worth investors and their families. As a result of his accumulated professional expertise, Anish is a sought-after media commentator regularly providing his views on business trends and developments on BNN Bloomberg, to the Canadian Press and other media.

Learn more about Portfolio Management Corp. at https://portfoliomanagement.ca/.

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Beyond Oil Ltd. (CSE:BOIL) Joins the CSE for a Virtual Market Open

The CSE warmly welcomed Beyond Oil Ltd. (CSE:BOIL) for a virtual Market Open on May 25, 2022. 

Beyond Oil is an innovative foodtech company that has developed a unique, patented breakthrough solution to eliminate free fatty acids (FFA) from edible oils through an environmentally sensitive and cost-effective process, while preserving quality and nutritional value. Beyond Oil’s unique technology and methodology integrate into customers’ existing oil filtration processes, reducing the amount of used oil required in restaurant operations.

CEO Dr. Tamir Gedo and other members of the Beyond Oil team kicked off the day’s trading at the virtual Market Open. 

“For us, going public was a natural evolution. Canada is accepting, accessible and friendly, and will help us go all the way,” stated CEO Dr. Tamir Gedo, adding, “… we thought it would be easier for us to go to an exchange that is more receptive and more understanding of the entrepreneurship issues.”  

James Black, VP of Listings Development at the CSE noted that “We are thrilled to welcome Beyond Oil to the CSE – yet another cohort hailing from Israel and another fine example of entrepreneurship at work from the Start-up Nation. We thank Dr. Gedo and his team for choosing the CSE to further their ambitions in the Canadian public markets!”

For more details about the CSE, including information on other Market Opens, please visit the CSE website or follow us on social media.

CSE’s Barrington Miller and 17 Issuers Featured in High Times Magazine

The cannabis industry continues to prove not only is it budding, it’s in a full-blown growth spurt. 

As one of North America’s fastest-growing industries, it’s important to monitor trends, legislation, and key players, and there’s no publication more on the pulse than High Times magazine, a top resource for the latest cannabis information since 1974.

Every year, High Times releases a list of the 100 most influential figures in the cannabis space. In April, they released The High Times 100 of 2021, and, excitedly, CSE Director of Listed Company Services, Barrington Miller, was featured, as well as 17 CSE-listed issuers. 

The CSE couldn’t be more proud of Barrington and these incredible cannabis entrepreneurs! It’s an impressive accomplishment and reaffirms the CSE’s reputation as a best-in-class marketplace for publicly traded cannabis stocks.

“It’s amazing to be recognized alongside these cannabis companies, professionals, and advocates. The CSE is proud of our contribution to the sector and we’re thankful to not only our issuers, but to everyone who is uplifting the industry. Special thanks to High Times for continuing to blaze that trail,” said CSE’s Barrington Miller. 

Check out the executives from the CSE-listed companies featured:

  • Leo Gontmakher, CEO of 4Front Ventures (CSE:FFNT)
  • Abner Kurtin, Founder and CEO of Ascend Wellness Holdings (CSE:AAWH.U)
  • Andy DeFrancesco, Former Chairman & CEO of SOL Global Investments (CSE:SOL)
  • Jason Wild, Chairman of TerrAscend (CSE:TER)
  • Kim Rivers, CEO of Trulieve Cannabis (CSE:TRUL)
  • George Archos, CEO, and Sam Dorf, Former Chief Growth Officer of Verano Holdings (CSE:VRNO
  • Daniel Carcillo, Founder and CEO of Wesana Health Holdings (CSE:WESA)
  • Robert Beasley, CEO of Cansortium (CSE:TIUM.U)
  • Nicholas Vita, CEO of Columbia Care (CSE:CCHW)
  • Charlie Bachtell, Founder and CEO of Cresco Labs (CSE:CL
  • Jonathan Sandelman, Chairman and CEO Ayr Wellness (CSE:AYR.A)
  • Joe Bayern, CEO of Curaleaf Holdings (CSE:CURA)
  • Matt Stang, Co-Founder and CEO of Delic Holdings (CSE:DELC)
  • Ben Kovler, Founder, Chairman, and CEO of Green Thumb Industries (CSE:GTII)
  • Jim Cacioppo, Founder, Chairman, and CEO of Jushi Holdings (CSE:JUSH)
  • Robert Groesbeck, Co-CEO of Planet 13 Holdings (CSE:PLTH)
  • Brad Rogers, CEO of Red White & Bloom Brands (CSE:RWB)

Alyssa Barry and Caroline Sawamoto on the Capital Markets Comeback Tour | The CSE Podcast Ep22-S2

To kick off the Capital Markets Comeback Tour, a joint event by the CSE and irlabs, the CSE’s Barrington Miller and Anna Serin are joined by Caroline Sawamoto and Alyssa Barry, CPIR, the Principals and Co-Founders of irlabs, an investor relations advisory firm. The four discuss the exciting cross-country event, the Capital Markets Comeback Tour, including a sneak peek at companies attending.

Here’s an overview of what Barrington, Anna, Alyssa, and Caroline discuss in this edition of the “Exchange for Entrepreneurs” podcast:

00:00 – Introduction and background
02:00 – How was irlabs started?
03:40 – Vancouver’s significance to the Canadian capital markets
07:00 – What to expect from the tour
11:00 – What does success look like for irlabs?
12:50 – List of participating companies
13:40 – Social media links and website information
15:25 – Alyssa’s music-related past
18:15 – Tour dates and cities
19:55 – Additional contact information

About Alyssa Barry
Alyssa is a Principal and Co-Founder at irlabs. She has over 15-years of investor relations, capital markets and corporate communications experience. An activist by nature, she has raised over $1 billion of capital, led some of Canada’s most successful activism campaigns, managed M&A transactions and enhanced board governance frameworks. She was formerly Head of Strategy – Operations and Communications at Artis REIT, Vice-President of Capital Markets and Communications at Sandpiper Group and Manager, Investor Relations at Amica Mature Lifestyles Inc. She is known for her agility, creative prose and relentless pursuit of success for her clients.

About Caroline Sawamoto
Caroline is a Principal and Co-Founder at irlabs. She has over 15-years of investor relations and capital markets experience across various exchanges and industries. She has supported numerous financing activities, both public and private, and helped raise over $650 million of capital. Caroline began her investor relations career with Canaccord Genuity Group Inc. in 2006. Her passion for making an impact through clean energy solutions led her to join Ballard Power Systems Inc. and Westport Fuel Systems Inc., both of which are dual-listed on the NASDAQ and TSX stock exchanges. Prior to co-founding irlabs, she was Investor Relations Manager at Alabaster Homes, a privately-owned real estate development company in Vancouver. She is known for her diligence, poise and can-do attitude.

Learn more about irlabs at https://www.irlabs.ca/.

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