TORONTO, July 7, 2021 /CNW/ - American Eagle Gold Corp.
(TSXV: AE) ("American Eagle" or the "Company") is
pleased to announce that it has identified potential carlin-type
drill targets at its Golden Gate property that are closer to the
surface than initially believed. These new targets have been
delineated from the Controlled Source Audio Magnetotelluric
("CSAMT") survey the Company completed in May. The Company
also reports that it has begun a 2D seismic survey at Golden Gate,
which will be combined with the data from the CSAMT to further
refine its drill program in the fall.
Promising CSAMT Results
The purpose of this CSAMT survey is to identify resistive units
that may represent carbonate rocks that could host favourable
Carlin-type mineralization. The results from the CSAMT indicate the
presence of highly resistive rocks beginning at 300 metres from the
surface in an area that has never been drill tested.
As a follow-up to the CSAMT survey, the Company is refining
these potential drill targets with a two-line seismic survey now
laid across the Golden Gate. This seismic survey will be completed
in July and combined with the data from an earlier seismic survey
undertaken on the Golden Gate property by Barrick Gold Corporation.
2D seismic surveys are widely used in the oil and gas industry
to delineate folding and low-angle structures which are
undercover. This exploration method is critical to
understanding the deposit structure, allowing American Eagle Gold
to delineate higher probability targets.
Watch an interview with CEO Anthony
Moreau
Permitting and Drill Program
The Notice of Intent for drilling will be filed in early August,
with permitting expected to be received in early September.
The Company is in the process of hiring a drilling contractor for
its fall drilling campaign. Future exploration will focus on
defining drill targets by analyzing the relationship between the
productive structures, geochemical anomalism and possible
geophysical signature of buried Carlin-type deposits.
See Map of Golden Gate Property
Closing of the Garden Gate Acquisition Expected
Shortly
As disclosed in the Company's news release dated June 29, 2021, the Company entered into a lease
with option to purchase agreement dated June
28, 2021, with Pyramid Lake LLC ("Pyramid Lake"), pursuant
to which the Company has agreed to acquire Pyramid Lake's interest
in Garden Gate in exchange for initial consideration consisting of
a cash payment of $25,000 and the
issuance of 200,000 common shares of the Company (each, a "Share")
as well as the grant of a 3.0% net smelter returns royalty on
production from Garden Gate, with American Eagle Gold having the
right to buy back one and a half percent (1.5%) at the time of a
production decision for $1,000,000.
In addition to this initial consideration, the Company has
agreed to make advanced royalty payments to Pyramid Lake as
follows:
- a cash payment of $15,000 in the
first year of the agreement (in addition to the initial cash
payment specified above);
- cash payments of an aggregate of $30,000 in each of the second and third years of
the agreement;
- cash payments of an aggregate of $34,000 in the fourth and fifth years of the
agreement;
- cash payments of an aggregate of $40,000 in the sixth year of the agreement;
and
- following the sixth year, cash payments each year thereafter in
an amount equal to the aggregate cash payments made in the prior
year, plus an additional 5%.
Further, the Company has the right to ultimately purchase the
Garden Gate property at any time upon the payment of $2,000,000 in cash and the issuance of 2,000,000
Shares to Pyramid Lake.
Closing of the American Eagle Gold acquisition of Garden Gate
from Pyramid Lake remains subject to receipt of approval of the TSX
Venture Exchange. For additional information on Garden Gate
and the terms of the proposed acquisition, please refer to the
Company's news release dated June 29,
2021.
About American Eagle Gold Corp.:
American Eagle Gold is traded on the TSX Venture Exchange under
the symbol 'AE' and is focused on exploring its flagship property,
Golden Gate. The property is strategically situated on the
Cortez Trend, which hosts three large Carlin-type gold deposits
operated by Barrick and Newmont's Joint Venture, Nevada Gold Mines (Pipeline, Cortez Hills and Goldrush). The property
is located 10 km south of Cortez Hills and 5 km south of Goldrush
and shows many of the same geological characteristics as at the two
deposit areas.
QP Statement
American Eagle's Vice President of
Exploration, Mark Bradley, B.Sc.,
M.Sc., P.Geo., a Certified Professional Geologist and 'qualified
person' for the purposes of Canada's National Instrument 43-101 Standards
of Disclosure for Mineral Properties, has verified and approved the
information contained in this news release.
For information and updates on American Eagle Gold, please
visit: www.americaneaglegold.ca
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the TSX Venture Exchange
policies) accepts responsibility for the adequacy or accuracy of
this release. Certain information in this press release may contain
forward-looking statements. Forward-looking statements in this
press release include, but are not limited to, statements regarding
the listing of the Company's Common Shares on the TSX Venture
Exchange and the anticipated timing thereof, the planned work
program on the Golden Gate project and the timing of the program
milestones. This information is based on current expectations that
are subject to significant risks and uncertainties that are
difficult to predict. Actual results might differ materially from
results suggested in any forward-looking statements. American Eagle
Gold Corp. assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those reflected in the forward looking-statements
unless and until required by securities laws applicable to American
Eagle Gold Corp. Additional information identifying risks and
uncertainties is contained in filings by American Eagle Gold Corp.
with Canadian securities regulators, which filings are available
under American Eagle Gold Corp. profile at www.sedar.com.
SOURCE American Eagle Gold Corporation