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American Creek JV Tudor talks Treaty Creek met testing

2024-10-25 12:08 ET - News Release

See News Release (C-AMK) American Creek Resources Ltd

Mr. Kelvin Burton of American Creek reports

AMERICAN CREEK'S JV PARTNER TUDOR GOLD ANNOUNCES POSITIVE METALLURGICAL TESTING RESULTS FOR THE GOLDSTORM DEPOSIT AT TREATY CREEK, LOCATED IN THE HEART OF THE GOLDEN TRIANGLE, NORTHWESTERN BRITISH COLUMBIA

American Creek Resources Ltd. project operator and JV partner Tudor Gold has given an update to continuing metallurgical test work on the Goldstorm gold, copper and silver deposit, located on the Treaty Creek project situated within the Golden Triangle of British Columbia.

Highlights from the metallurgical testing on the Lower CS-600 subdomain include:

  • Flotation recoveries within the Lower CS-600 subdomain totalled up to 88.1 per cent copper, 63.8 per cent gold and 51.3 per cent silver;
  • Flotation testing confirmed that a high-grade copper concentrate with significant quantities of gold can be produced from the Lower CS-600 subdomain, which exceed 29 per cent copper with significant gold and silver grades of 33 grams per tonne gold and 96 grams per tonne, respectively.

The flotation program uses a typical copper flow sheet to produce the saleable copper concentrate mentioned herein. Further flotation test work is continuing to produce a separate pyrite concentrate containing gold and silver. The positive results from flotation, in conjunction with previous oxidative leaching methods (such as pressure oxidation or Albion), continue to support the previously reported gold recoveries of 90 per cent for the Lower CS-600 domain. The testing program was designed and executed with sufficient rigour to support a future preliminary economic assessment (PEA).

Commenting on the results, Ken Konkin, president and chief executive officer of Tudor Gold, stated: "We are very pleased with the results obtained from the locked-cycle flotation tests from this phase of metallurgical testing on material from the lower portion of the CS-600 domain (CS-600L). We estimate more than 50 per cent of the CS-600 domain is located within the lower portion (the CS-600L subdomain). Through a simple rougher-cleaner flotation process, we were able to produce an exceptionally clean, high-grade concentrate with excellent metal recoveries, with over 88 per cent for copper and approximately 64 per cent for gold. The CS-600L subdomain is located in the same area that hosts the newly discovered Supercell-1 (SC-1) high-grade gold complex. Our engineering team has recommended initial metallurgical tests to be conducted on material collected from the SC-1 drill hole intercepts. The SC-1 composite sample will be shipped to SGS Labs for metallurgical tests.

"Our concept is to focus on the high-grade SC-1 to study the possibility of extracting as much high-grade gold as possible while potentially building out the infrastructure to access the CS-600L area. The plan is to utilize the same workings from the Supercell complex to access the CS-600 domain. These latest results from the CS-600L domain significantly derisk the Goldstorm project with respect to metallurgical characteristics of the copper-gold mineralization and will be utilized in a future preliminary economic assessment (PEA).

"Additionally, two gold-dominant domains, 300H and DS5, have demonstrated high gold recoveries from previous oxidation/cyanidation tests, with results exceeding 94-per-cent gold recovery for the Albion process and in excess of 98-per-cent gold recovery for pressure oxidation tests. We were very pleased to observe that no deleterious compounds were formed from any of the types of oxidation leach tests completed, which will allow our technical team to conduct trade-off studies for recovery versus costs for each process. Given the favourable metallurgical test results obtained from this gravity/flotation system for the CS-600L subdomain, testing and potentially expanding the SC-1 high-grade gold complex will be our primary focus moving forward. Additional tests are also recommended to examine the northernmost part of CS-600 (CS-600N), which has never been tested previously and continued tests on the upper CS-600 (CS-600U). However, the lower portion of CS-600 has enough volume to mine and process 40,000 tonnes per day over 17 years, producing a highly desirable copper concentrate with good gold and silver credits. The goal for the Treaty Creek deposit is to be able to produce at least 500,000 gold equivalent ounces per year. Our mineral process engineers can determine the optimal size and type of mineral processing to be considered for advancing the project that will part of the PEA with a series of trade-off studies examining the most economical path forward for the Treaty Creek project."

Metallurgical test work and results

Recent metallurgical testing carried out at Blue Coast Research, under the supervision of Tad Crowie, PEng, of JDS Energy & Mining Inc., demonstrated that a high-grade copper concentrate could be produced from the Lower CS-600 subdomain. The locked-cycle test achieved recoveries of 88.1 per cent copper, 63.8 per cent gold and 51.3 per cent silver into a concentrate with grade exceeding 29 per cent copper and 30 grams per tonne gold for the Lower CS-600. A locked-cycle test is considered an important step in developing a mineral processing flow sheet, which incorporates flotation, as it demonstrates the effects that recycle streams will have on the overall process. The tests were completed on samples that are consistent with those used for the previous metallurgical testing and had gold and copper feed grades of 0.91 gram per tonne gold and 0.59 per cent copper, which are consistent with the grades in the Lower CS-600 subdomain.

The current flotation flow sheet follows a typical copper flotation circuit configuration, with standard copper flotation reagents. The primary grind in the current test work has been reduced from a P80 of 120 micrometres used in the previous test work program to a P80 of 75 micrometres allowing for a higher overall recovery of copper than has been previously achieved. The gold recoveries have achieved similar results to previous flotation test work.

A rougher concentrate regrind target of P80 of 30 micrometres allowed the production of a high-grade copper concentrate, exceeding 29 per cent copper with significant gold and silver grades of 33 grams per tonne gold and 96 grams per tonne silver for CS-600L.

The locked-cycle test results for the combined products of last three cycles of the test (cycles 4, 5 and 6) can be found in the attached table. The locked-cycle test achieved stability after the first two cycles, which demonstrates that the flow sheet is stable, as well as validating the test results.

The high copper concentrate grade, along with high levels of gold and silver, achieved in this test suggests that there are opportunities to pull the circuit harder to increase overall metal recovery.

Quality assurance/qualified person

The metallurgical program was carried out by Blue Coast Research of Nanaimo, B.C., selected to conduct further mineralogical assessment of the Goldstorm sample material. The metallurgical and mineralogical work was conducted under the supervision of Mr. Crowie of JDS Energy & Mining, a qualified person as defined by National Instrument 43-101. Mr. Crowie has reviewed this news release and agreed to its contents.

Ken Konkin, PGeo, president and chief executive officer of Tudor Gold, is the qualified person, as defined by NI 43-101, responsible for the project. Mr. Konkin has reviewed, verified and approved the scientific and technical information in this news release.

Standard quality assurance/quality control sampling procedures are maintained by SGS and Blue Coast to ensure accurate and representative testing.

About Treaty Creek

The Treaty Creek project hosts the Goldstorm deposit, comprising a large gold-copper porphyry system as well as several other mineralized zones. As disclosed in the "NI-43-101 Technical Report for the Treaty Creek Project," dated April 5, 2024, prepared by Garth Kirkham Geosystems and JDS Energy & Mining, the Goldstorm deposit has an indicated mineral resource of 27.87 million ounces of gold equivalent grading 1.19 grams per tonne gold equivalent (21.66 million ounces gold grading 0.92 gram per tonne, 2.87 billion pounds copper grading 0.18 per cent and 128.73 million ounces silver grading 5.48 grams per tonne) and an inferred mineral resource of 6.03 million ounces of gold equivalent grading 1.25 grams per tonne gold equivalent (4.88 million ounces gold grading 1.01 grams per tonne, 503.2 million pounds copper grading 0.15 per cent and 28.97 million ounces silver grading 6.02 grams per tonne), with a pit-constrained cut-off of 0.7 gram per tonne gold equivalent and an underground cut-off of 0.75 gram per tonne gold equivalent.

The Goldstorm deposit has been categorized into three dominant mineral domains and several smaller mineral domains. The CS-600 domain largely consists of nested pulses of diorite intrusive stocks and hosts the majority of the copper mineralization within the Goldstorm deposit. CS-600 has an indicated mineral resource of 15.65 million ounces of gold equivalent grading 1.22 grams per tonne gold equivalent (9.99 million ounces gold grading 0.78 gram per tonne, 2.73 billion pounds copper grading 0.31 per cent and 73.47 million ounces silver grading 5.71 grams per tonne) and an inferred mineral resource of 2.86 million ounces of gold equivalent grading 1.20 grams per tonne gold equivalent (1.87 million ounces gold grading 0.79 gram per tonne, 475.6 million pounds copper grading 0.29 per cent and 13.4 million ounces silver grading 5.63 grams per cent). The Goldstorm deposit remains open in all directions and requires further exploration drilling to determine the size and extent of the deposit.

Treaty Creek JV partnership

American Creek is a proud partner in the Treaty Creek project.

The project is a joint venture, with Tudor Gold owning three-fifths and acting as operator. American Creek and Teuton Resources each have a one-fifth interest in the project creating a 3:1 ownership relationship between Tudor Gold and American Creek.

American Creek and Teuton hold fully carried 20-per-cent interests, which means no development costs are incurred by these companies until a production notice is issued. This gives shareholders a unique opportunity to avoid the dilutive effects of exploration while maintaining their full 20-per-cent exposure to one of the world's most exciting megadeposits.

About American Creek Resources Ltd.

American Creek is a Canadian junior mineral exploration company with gold and silver properties in British Columbia, Canada.

The corporation has an interest in the Treaty Creek property, a joint venture project with Tudor Gold located in British Columbia's prolific Golden Triangle.

The corporation also holds the Austruck-Bonanza gold property located near Kamloops.

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