American Pacific Mining – 3rd Warrant Financing Of The Week

American Pacific Mining – 3rd Warrant Financing Of The Week

With the announcement of the closing of American Pacific Mining’s (CSE – USGD) financing yesterday, I have taken a position in the company at $0.10 with a half warrant exercisable at $0.20 for a period of 12 months.  Great value on a nice Nevada explorer.

The attraction to American Pacific Mining is two-fold.  On a personal level, I really like Warwick Smith who is CEO.  But more importantly, I really like the vein systems found on American Pacific’s Tuscarora gold project (optioned from Quenton Hennigh’s Novo Resources).

In the 1990’s, Newcrest and Franco-Nevada explored for the extension of the Navajo vein, located to the north of the Tuscarora property boundary.  The Navajo vein was mined along strike for nearly 2 km until it was lost under pediment gravel at Tuscarora.

Drilling by American Pacific in 2018 showed that the Navajo vein did indeed extend south into the Tuscarora property boundary, with high grades.  There is a theory that up to 11 different vein systems located north of the property boundary extend south, under pediment gravel, onto the Tuscarora property.  Drilling in 2019 should let us know whether the theory is quickly starting to become fact.

After the financing, American Pacific has 47 million shares outstanding for a tiny $4.7 million market cap (at the financing price).  Along with about $1.7 million in cash, that’s only a $3 million enterprise value (EV) for an extremely prospective gold project in Nevada run by a solid team.  Exactly the type of speculation I’m looking for.

Philip O'Neill
Philip O'Neill
poneill@mp1capital.com