Project Overview
USGD acquired the permitted Madison Copper Gold Mine from Madison Metals June 2020
Rio Tinto may earn 70% by spending US$30M with USGD free carried
Past production 2008 – 2012 of 2.7M lbs of copper with grades ranging from ~20% to over 35% copper and 7,570 ounces of gold at 16.1 g/t
Analogous to and just 48 km from the Butte mine, which churned out 21 billion lb. copper, 715 million oz. silver, 2.9 million oz. gold
Copper-Gold in Montana, USA
For this transaction, American Pacific was selected as a finalist in the ‘Deal of the Year’ category in both 2021 and 2022 at the S&P Global Platts Global Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories.
Historical Drill Highlights
Exceptional grades allowed for mining with very basic methods & infrastructure
Click here to view Combined Madison Drill Result
Madison Project has Fortitude Characteristics
Fortitude deposit has 2.5M ounces gold
* Assumptions: $1.22 per pound zinc, $2.82 per pound copper, $16.26 per ounce silver, $1296 per ounce gold are the average of three years past and projected two years forward based on London Metal Exchange futures as of April 16th, 2019. Barite price of $220 per metric tonne provided by third party barite industry experts.
Geology
The project, a high-grade Cadia-like skarn over porphyry system, encompasses 2,514 acres consisting of six patented lode claims and 108 unpatented mineral claims. Recent interpretations identified multiple priority target areas believed to be associated with large-scale porphyry mineralization at depth and located within a well-mineralized, two-mile-long geological, geophysical and geochemical trend. The project is permitted for mining, surface and underground exploration.
The Broadway mine produced:
144,000
ounces of gold from 1880-1950
7,570
ounces of gold from 1880-1950 (Avg. of 0.52 oz/ton Au)
3.02M
pounds of copper from bulk samples of 19,803 tons (Avg. of 25% Cu)
Currently, known skarn mineralization, gold-bearing jasperoid and massive sulphide gold and copper mineralization is proposed to be linked to a deeper porphyry system.
Madison Ore
Grades:
Hole 88-C9 (199′-213′, 14 ft)
Au= 0.53 opt
Ag= 0.16 opt
Cu= 0.23%
Process/Milling:
Golden Sunlight Mine/Mill
Hole 94-5R (475′-485′, 10 ft)
Au= 0.020 opt
Ag= 0.20opt
Cu= 10.58%
Process/Milling:
Smelter
Hole CO6-8 (401′-418.7′,17.7 ft)
Au= 0.67 opt
Ag= 4.20 opt
Cu= 11.2%
Process/Milling:
Phillipsburg Mill, Montana
Past Production & Shipments
Broadway Mine Production*
1880-1950
- 144,000 oz of gold with average grades of 9 g/t from 1.8 km length of underground workings (depth of 230m)
Madison Gold and Copper Shipments**
2008-2013
- 2008: First oxide gold averaging 19 g/t Au shipped to Barrick Gold’s nearby Golden Sunlight Mine (Whitehall, Montana)
- 2009: First sulphide gold averaging 20 g/t Au shipped to Kinross Gold’s Republic Mine (Republic, Washington)
- 83% average gold recovery from 12 shipments
- 20,000 tons (14597 tons of gold skarn, 5,208 tons of copper skarn) shipped as bulk sample during underground development and milled recoveries of 7,570 ounces of gold and 3,020,000 pounds of copper
** Shipments- stockpiling oxide gold, massive sulphide gold and copper mineralization for subsequent mill shipment
*Source: Madison Project report June 2016, Page 1
Transaction Details
- USGD issued 20 million USGD shares to Madison Metals post-consolidation (subject to a 6 month hold period in escrow)
- USGD issued 5 million USGD warrants priced at $0.25 to Madison Metals post-consolidation (18 month expiry)
- Madison Metals will add one member to the USGD Advisory board
- Rio Tinto/Kennecott must spend US$30 million over 11 years to earn 70% of the project
- US$5-million earn-in over five years that generates a 55% interest for Rio Tinto
- US$15-million earn-in over eight years that generates a 65% interest for Rio Tinto
- US$30-million earn-in over 11 years that generates a 70% interest for Rio Tinto
- 2% NSR on 104 of the unpatented and patented claims
- Small Miners Exclusion permit allows 5 acres of disturbance
- Water discharge permit in place with the State of Montana
- Storm water discharge permit current with Montana Department of Environmental Quality
- All easement accesses are current
- Under Ground workings have been substantially rehabbed
- Favorable geology and structural setting provide numerous exploration targets
Technical Reports
43-101 Technical Report
43-101 Technical Report Update
Madison Combined Drill Results
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