American Eagle drills 606 m of 0.74% CuEq at NAK

Mining
Tuesday, January 9th, 2024 6:22 pm EDT

AMERICAN EAGLE INTERSECTS 302 METRES OF 1.09% COPPER EQUIVALENT WITHIN 606 METRES OF 0.74% COPPER EQUIVALENT

American Eagle Gold Corp.’s hole NAK23-17 has intersected 302 metres of 1.09 per cent copper equivalent within 606 metres of 0.74 per cent copper equivalent (CuEq) beginning at 98 metres down hole, west of the South zone at its NAK copper-gold porphyry project in British Columbia, Canada.

Hole NAK23-17 was collared more than 250 metres distant from any previous drill hole on the property, the nearest being hole NAK23-11, which intersected 473 metres of 0.62 per cent copper equivalent from surface. The high-grade intercept in NAK23-17 has served to confirm and improve upon the scale and tenor of high-grade mineralization discovered west of the historically defined South zone, by showing continuity between the higher-grade mineralization in hole NAK23-11 and that in holes NAK23-08 and NAK22-01. For the 2024 drill program, the company intends to test and expand this area of higher-grade mineralization, identify where it reaches the surface, and to determine how much farther it extends to the south, west and north, including possible connections to deeper, higher-grade mineralization at the North zone, such as that intersected in drill holes NAK22-04 and NAK23-12.

“The more we drill, the better NAK gets, as shown by the bold, westerly stepout with NAK23-17. This risk paid off, revealing what may be a high-grade mineralized belt that remains open to the north and the south, and proving that the high-grade mineralization encountered previously in NAK23-11 is extensive in both the vertical and east-west dimensions. Two thousand twenty-two’s drill program demonstrated that NAK is a copper and gold porphyry system with a very large near-surface footprint that extends to depth. Since then, we have identified increasingly high-grade zones throughout 2023. Intersecting 302 metres of 1.09 per cent copper equivalent grade in our final 2023 drill hole suggests that our evolving understanding of NAK’s geology has been efficient and successful. We look forward to our 2024 drill campaign, and to continue making discoveries that deliver value to American Eagle shareholders and our partners in exploration in the Babine Lake region,” stated chief executive officer Anthony Moreau.

NAK23-17 was collared approximately 250 metres west of hole NAK23-11 in the westernmost part of the South zone. The hole was drilled east-southeastward (105 degrees) at an inclination of minus 73 degrees and was targeted to confirm continuity between the higher-grade intervals of mineralization in holes NAK23-11 and NAK23-08, while also testing a broad zone of favourable induced polarization (IP) signature. NAK23-17 intersected strong mineralization throughout much of its length, beginning at 98 m and continuing until the Babine porphyry stock was intersected at approximately 700 m. Mineralization consists primarily of vein-hosted and disseminated chalcopyrite, with minor bornite and molybdenite. Gold and molybdenum grades remained consistently high throughout the mineralized zone in NAK23-17, with the highest grades being closely related to the presence of chalcopyrite- and molybdenite-bearing purple anhydrite veins. Mineralization is dominantly hosted by coarser-grained sedimentary rocks, chiefly conglomerate, and short intervals of relatively narrow dikes. The best mineralized interval from 98.8 m to 705 m returned 606.2 m of 0.74 per cent CuEq (0.35 gram per tonne gold, 0.30 per cent copper, 1.14 g/t silver and 0.026 per cent molybdenum), while the strongest zone of mineralization returned 302 m of 1.09 per cent CuEq (0.53 g/t Au, 0.40 per cent Cu, 1.27 g/t Ag and 0.043 per cent Mo) between 166.87 and 469 m. This strongest zone occurred within a broader zone of 450.7 m of 0.89 per cent CuEq (0.44 g/t Au, 0.33 per cent Cu, 1.15 g/t Ag and 0.033 per cent Mo) from 98.8 to 549.5 m.

Results from NAK23-13, -14, -15 and -16

Holes NAK23-13 to -16 intersected zones of copper and gold mineralization hundreds of metres across, and most of the holes also intersected higher-grade intervals as well. The holes help to expand the footprints of the higher-grade parts of both the North and the South zones, and holes NAK23-13 (south side of North zone) and -16 (north end of South zone) in particular give the company further confidence that the area between the two zones will yield additional significant intercepts in both length and grade.

NAK23-13 was collared 110 metres south of NAK22-04 in the North zone and drilled to the west at an inclination of minus 60 degrees. The drill hole targeted both the southern extension of the near-surface North zone mineralization intersected historically, as well as higher-grade and somewhat deeper North zone mineralization intersected in holes NAK22-04 and NAK23-12. Consistent with other holes in this area drilled to date, NAK23-13 encountered conglomerate, sandstone and interbedded fine-grained sedimentary rocks that are cut by variably mineralized dikes of Babine stock granodiorite, and later-stage fine-grained porphyries. NAK23-13 encountered copper mineralization of moderate grade from the bottom of overburden at 14 metres, to 134 metres depth, returning 120 m at 0.30 per cent CuEq (0.067 g/t Au, 0.22 per cent Cu), with the strongest interval containing 103 m of 0.54 per cent Cu Eq (0.050 g/t Au, 0.40 per cent Cu, 1.53 g/t Ag and 0.013 per cent Mo) between 269 and 372 m. Hole NAK23-13 extended the near-surface mineralization at the North zone to the south and showed that a substantial body of strong mineralization occurs at moderate depths to the west.

NAK23-14 was collared 110 metres to the northeast of NAK22-04 at the North zone and drilled to the west at an inclination of minus 70 degrees. The drilling aimed to expand the known extent of near-surface mineralization at the North zone intersected both historically and in American Eagle holes NAK22-04 and NAK23-12 (please see news releases dated Jan. 25 and Oct. 17, 2023). A further aim was to test to depth and along trend to the north from deeper and higher-grade mineralization intersected in holes NAK23-12 and 13. As in NAK23-13, NAK23-14 intersected extensive sequences of conglomerate interbedded with subordinate intervals of finer-grained sedimentary rocks that were intruded by mineralized dikes, including those resembling medium-grained granodiorite of the Babine porphyry stock. NAK23-14 intersected broad and consistently chalcopyrite and bornite mineralized rock of moderate tenor from surface to a depth of 560 metres, where the mineralized intervals become shorter and more sporadic. The best mineralization was encountered between 347.71 m and 560 m, returning 212.29 m of 0.51 per cent Cu Eq (0.089 g/t Au, 0.35 per cent Cu, 2.14 g/t Ag and 0.0098 per cent Mo), while the entire hole, from the base of overburden at 20 m returned 729 m of 0.30 per cent CuEq (0.056 g/t Au, 0.21 per cent Cu, 1.11 g/t Ag and 0.0053 per cent Mo).

NAK23-15 was collared 110 m south of NAK23-11 and was drilled to the west at an inclination of minus 60 degrees. It is the most southerly hole drilled by the company at NAK and was designed to test the southern and western extents of mineralization at the NAK South zone, as well as to more completely test the western part of the high-chargeability phyllic alteration halo defined by induced polarization and drill data around the Babine porphyry stock. NAK23-15 encountered broad intervals of medium- to coarse-grained sandstone, and conglomerate, intruded by a variety of porphyry dikes. Compared with holes drilled farther north, copper mineralization was less consistent down hole, although metre-scale zones of better grade, ranging up to approximately 10 metres in core length, occur throughout the hole, being hosted primarily within conglomerate and sandstone. NAK23-15 returned 542.4 m of 0.25 per cent CuEq (0.05 g/t Au, 0.11 per cent Cu, 0.49 g/t Ag and 0.016 per cent Mo) and, as expected, pyrite was both more abundant overall and increased in abundance down hole to the west, confirming that the phyllic alteration is present at depth and suggesting that the higher-grade mineralization encountered in holes NAK23-17 and 11 may track with the moderate chargeability response to the east.

NAK23-16 was collared 150 m north-northwest of NAK23-11 at the South zone and was drilled at an azimuth of 265 degrees and an inclination of minus 65 degrees. The hole was designed to test along trend to the north of the higher-grade mineralization intersected at depth in holes NAK23-11, 23-08 and to a lesser extent in hole NAK23-10. The rocks encountered were predominantly conglomerate and sandstone, beginning at top of hole, interbedded locally with finer-grained sedimentary rocks and intruded by metre-scale porphyry dikes, including some of similar granodioritic composition to the Babine porphyry stock. Vein and disseminated copper-gold-molybdenum mineralization in NAK23-16 was intersected from the base of overburden at 55.25 m until end of the hole at 743 m, and was strongest within conglomeratic host rocks between 262 m and 652.87 m, yielding 390.87 m of 0.34 per cent CuEq (0.071 g/t Au, 0.23 per cent Cu, 0.95 g/t Ag and 0.0078 per cent Mo). Disseminated and vein-hosted pyrrhotite was first encountered at approximately 600 m, and pyrrhotite became the dominant sulphide by approximately 660 m. While the appearance of pyrrhotite in holes NAK21-11 and NAK23-08 corresponded with a marked decrease in the abundance of copper sulphide, in hole NAK23-16 a zone of strong chalcopyrite mineralization was intersected between 698 and 711 m, being manifest as distorted wispy sulphide veins within a fine-grained porphyry dike. This intersection returned 13 m of 1.20 per cent CuEq (0.36 g/t Au, 0.82 per cent Cu, 4.91 g/t Ag and 0.010 per cent Mo), suggesting potential for higher-grade zones within and associated with dikes at depth beyond the limit of known mineralized zones, as well as within the high-chargeability phyllic alteration halo surrounding the Babine porphyry stock.

Update on IP survey and off-season geological work

Data from a late-season three-line, deeper-looking IP survey are currently being integrated with historical geophysical data. Preliminary results indicate a strong correlation between Cu-bearing sulphide mineralization and coincident moderate resistivity and chargeability responses along a northerly trend near the western side of the main area of focus for the company’s 2022/2023 drilling. Work is also under way to integrate this season’s geochemical and hyperspectral results with a detailed re-examination of the drill core to more conclusively identify and constrain intrusive lithologies, which appear to play an important role in controlling the distribution of copper mineralization.

Preliminary SOW for 2024 drill program

Following this season’s encouraging results, planning is under way for an early and aggressive follow-up drill program in 2024. Early work will include expanding and better defining the high-grade mineralized zone intersected in drill holes NAK23-08, -11 and -17. A specific emphasis will be to determine where the best grade mineralization comes to surface. Following that, possible connections to deeper, higher-grade mineralization at the North zone, such as that intersected in drill holes NAK22-04 and NAK23-12, will be evaluated.

Later in the season, attention may focus on linking known mineralization to the newly identified, near-surface mineralization encountered to the east in drill hole NAK23-09. Before drilling, additional IP surveying is planned for the spring of 2024 to complement the survey completed in 2023 — the aim is to provide more confidence at depth in the IP inversion model.

Quality assurance/quality control and sampling protocol

Sampling at NAK follows a rigorous methodology and internal QA/QC protocol. Drill core is halved on site, and samples are submitted to ALS Geochemistry in Langley, B.C., for preparation and analysis. ALS is accredited to the ISO/IEC 17025 standard for assays. All analytical methods include quality control standards inserted at set frequencies. The entire sample interval is crushed and homogenized, and 250 grams of the homogenized sample is pulped. All samples were analyzed for gold, silver, copper, molybdenum, and a suite of 45 other major and trace elements. Analysis for gold is by fire assay fusion followed by inductively coupled plasma atomic emission spectroscopy (ICP-AES) on 30 grams of pulp. Analysis for silver, copper and molybdenum is by four-acid digestion followed by inductively coupled plasma mass spectroscopy (ICP-MS). All other major and trace elements are analyzed by four-acid digestion followed by ICP-MS.

Internal QA/QC protocols dictate that individual core samples are no less than 70 centimetres, and no greater than three m in length. To control standard, blank sample and duplicate frequency, and to better constrain pass/fail reanalysis intervals, samples are submitted to the lab in 50-sample batches. Within each 50-sample batch, there is one gold-copper standard and two coarse reject duplicates, inserted at regular intervals, and two blank samples inserted sequentially, following mineralization where possible, for a total of 10 per cent QA/QC samples. All gold and copper standard analyses from the 2023 program passed within two standard deviations of expected values. Where duplicate values differed significantly, the lower values from the resulting reanalyses were used.

About American Eagle’s NAK project

The NAK project lies within the Babine copper-gold porphyry district of central B.C. It has excellent infrastructure, being accessed by a network of active all-season logging roads, and being supported by proximity not only by nearby logging camps, but also by the vibrant town of Smithers, B.C., through which a cross-Canada rail line and a major provincial highway (Hwy 16) pass. The property is also close to the past-producing Bell and Granisle open-pit Cu-Au mines. Historical drilling and geophysical, geological and geochemical work at NAK, which began in the 1960s, tested only to shallow depths, but the work revealed a very large near-surface copper-gold system that measures over 1.5 kilometres by 1.5 kilometres. Drilling by the company in 2022 and 2023 has returned significant intervals of high-grade copper-gold mineralization that lie beyond the extent of historical drilling, indicating that a number of zones of near-surface and deeper mineralization, locally with considerably higher grades, exist within the broad NAK property mineralizing system.

About American Eagle Gold Corp.

American Eagle is focused on exploring its NAK project in the Babine copper-gold porphyry district of central British Columbia. In May, the company announced a strategic investment by Teck Resources Ltd., which now owns a 19.9-per-cent equity stake in the company after subsequent investments in August and November, 2023.

Qualified person statement

Mark Bradley, BSc, MSc, PGeo, a certified professional geologist and qualified person for the purposes of Canada’s National Instrument 43-101 Standards of Disclosure for Mineral Projects, has verified and approved the information contained in this news release.

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