• Silver Price US$16.91
  • Gold Price US$1,461.43
  • CSE: USGD  $0.10
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  • Tuscarora Gold Project

Tuscarora

    Overview

    The Tuscarora Gold Project, 50km northwest of Elko, is a high-level, low-sulfidation, epithermal gold prospect in the historic Tuscarora Mining District of Nevada, USA.

    The property consists of 91 claims covering approximately 1,818 acres within the Tuscarora Mining District in Elko County, Nevada. The Tuscarora District lies at the foot of Mount Blitzen on the eastern slope of the Northern Tuscarora Range.

    Historic drilling intersected over 368 g/t gold in quartz-adularia veins at relatively shallow depths at Tuscarora. American Pacific optioned the property from Novo Resources, and completed Phase 1 of an initial drill campaign to follow up on previous high grade drill results. Following this, OceanaGold entered an earn-in joint venture agreement on Tuscarora (details of which are below), and have now commenced a 4000 meter rc drill program, announced on Sept 16, 2019

    Tuscarora has had extensive reverse circulation drilling in the past. Since the 1980’s, the gold-dominant, high-grade vein portion of the district has emerged with two distinct zones, the South Navajo Vein Zone and the East Pediment Zone. Drilling has intersected high gold grades in quartz-adularia veins at relatively shallow depths. 

    American Pacific phase 1 drilling concentrated on the South Navajo Vein zone, with highlights below: 

    Tuscarora APM Drill Highlights Compilation

     

    HoleIDFrom (m)To (m)Length (m) *Au (g/t) **
    APTU18-015201.17202.691.5218.40
    APTU18-009198.12201.173.0516.06
    Including198.12199.641.5227.20
    APTU18-016195.07198.123.0513.42
    APTU18-013137.16138.681.5210.30
    APTU18-015173.74175.261.527.77
    APTU18-001159.93161.061.136.27
    APTU18-016202.69204.221.535.52
    APTU18-016155.45156.971.525.49
    APTU18-00568.7969.340.554.05
    APTU18-015181.36182.881.523.15

    Novo (16TSRC series) and Newcrest (TN/TNC series) Tuscarora Highlights, including East Pediment

    HoleIDFrom (m)To (m)Length (m) *Au (g/t) **Ag (g/t) **Zone
    TN-38150.88155.454.57127.086.53SN
    Including152.4153.921.52368.313.60SN
    TN-54210.31211.841.5351.06102.90SN
    TNC-0250.2951.821.5327.6111.20SN
    TN-52150.88152.41.5213.555.40SN
    TN-19170.69172.211.5213.001.00SN
    16TSRC-006153.92155.451.5311.4811.90SN
    TN-24108.2109.731.539.331.00SN
    16TSRC-002158.5161.543.049.139.07SN
    Including 158.5160.021.5213.8650.00SN
    TN-38211.84213.361.528.750.10SN
    FTC-02174.35174.650.38.5716.11SN
    16TSRC-01085.3488.393.057.786.07SN
    TN-24137.16138.681.527.203.60SN
    TN-19134.11135.641.537.000.40SN
    16TSRC-001167.64169.161.526.916.89SN
    TN-36179.83182.883.056.151.88SN
    TNC-03173.74175.261.525.321.90SN
    TN-40179.83181.361.535.302.70SN
    16TSRC-00462.4864.011.535.005.07SN
    TN-2251.8253.341.524.620.80SN
    16TSRC-002190.5192.021.524.544.93SN
    TN-41204.22205.741.524.060.80SN
    TN-5779.2580.771.5252.37366.90EP
    TN-63117.35118.871.524.140.60EP

    * Length (m) represents sampling length downhole. True width of the intersection is currently unknown but assumed to be less than the reported length. 

    ** Reported grades assume 100-per-cent metallurgical recovery.

    *** Intervals were selected and composited based on 4 g/t Au cut-off value.

    The Agreement

    On November 6, 2017, American Pacific Mining Corp. ("APM") entered into an option agreement with Novo Resources (USA) Corp. ("Novo") to acquire a one hundred (100%) percent interest in the Property. For this option, APM will:

    • Make cash payments to Novo of three hundred and seventy-five (CAD$375,000) Canadian dollars
    • Deliver shares of American Pacific Mining Corp. stock equivalent to two hundred thousand (CAD$200,000) Canadian dollars
    • Complete one hundred thousand (USD$100,000) U.S dollars per year in expenditures on the property

    American Pacific Mining Corp may exercise the Option at any time after completing the cash and share payments.  Following that the APM obligations will be:

    1. Pay a Royalty Interest to Novo of one-half percent (0.5%) of Net Smelter Returns which may be reduced to nil (0%)) by paying five hundred thousand (USD$500,000) US dollars.
    2. Pay a Royalty Interest to Nevada Select Royalty, Inc. based on the New York COMEX price of gold per troy ounce, payable as follows:
    Less than or equal to $1,500.00Two percent (2.0%)
    Greater than $1,500.00 but less than or equal to $2,000.00Three percent (3%)
    Greater than $2,000.00Four percent (4.0%)

    Advance minimum royalty payments due on the third through fifth anniversaries of $4,000; sixth through tenth anniversaries of $8,000; eleventh and succeeding anniversaries of $12,000.

    OceanaGold JV Agreement

    APM is pleased to announce the Company has entered into a joint venture agreement, totalling USD$10 million, on the Tuscarora Gold Project (announced April 15, 2019).

    Key Points of the Agreement

    • OceanaGold can earn up to 51% of the Tuscarora Gold Project by investing USD$4 million over the next four years (Phase 1)
    • OceanaGold will have sixty (60) days thereafter to exercise an option to earn an additional 24% by investing a further USD$6 million over the following four years (Phase 2)
    • OceanaGold will make an initial cash payment of USD$50,000 to American Pacific and, upon OceanaGold earning a 51-per-cent interest in the property, a second payment of USD$200,000 in cash or shares at Oceana's option
    • OceanaGold will also make all payments to holders of underlying property interests and pay claim fees
    • OceanaGold will be the operator and, upon earning-in an interest, a joint venture management committee will be formed

    OceanaGold will have the following Exploration and Development Obligations totalling Four Million Dollars (USD$4,000,000.00)

    By the 1st anniversary of Effective Date        $625,000.00

    By the 2nd anniversary of Effective Date       $750,000.00

    By the 3rd anniversary of Effective Date     $1,125,000.00

    By the 4th anniversary of Effective Date     $1,500,000.00

    OceanaGold is obligated to incur USD$625,000.00 in exploration and development expenditures by the end of the first year.

    Oceana shall be responsible to pay the outstanding payment of CDN$125,000 due to Novo Resources on January 31, 2020. This amount will count towards the Minimum Annual Expenditure in the first Agreement Year as set forth in the agreement, however reasonable fees and charges required to keep the Property in good standing are excluded from the calculation of minimum annual expenditures.

    Phase II, following the earning of 51% interest and transfer of title to Oceana, Oceana will have sixty days to exercise its one-time option to elect the Phase II earn-in to earn an additional 24% interest by spending an additional Six Million Dollars ($6,000,000.00) in Exploration and Development over a four year period. In particular, Oceana shall spend the following minimum Exploration and Development Expenditure in each of the four years during the Phase II earn-in:

    By the 1st anniversary of the option exercise date               $500,000.00

    By the 2nd anniversary of the option exercise date              $500,000.00

    By the 3rd anniversary of the option exercise date               $500,000.00

    By the 4th anniversary of the option exercise date               $500,000.00

    For more information please view the final agreement which will be filed shortly on Sedar.

    History

    The Tuscarora Mining District is within a major gold producing region of Nevada. Placer gold was discovered in the district in 1867 and production of silver-gold lode deposits began in 1875 (LaPointe, et al., 1991). Total precious metal production between 1867 and 1990 consists of >500,000 ounces of gold and 7,632,000 ounces of silver from quartz veins and quartz stockwork mineralization. 

    Since 1982, the Tuscarora District has had a sustained, exploration effort. This effort has been almost continuous, with each subsequent operator building on the previous work. Ultimately, this work led to the area covered by the Tuscarora Project.

    The Tuscarora Project lies south and east of the Dexter historic open-pit. Newcrest drilled this area and noted numerous significant gold values for the South Navajo Vein and East Pediment areas. With up to 5 feet, grading 182 g/t Au in drill hole TN38, in the South Navajo Vein area. Their assay values indicated narrow and somewhat discontinuous shoots of high-grade gold. Newcrest also described coarse visible gold that created a metallurgical nugget effect.

    To view a PDF of the Work History by year at Tuscarora, please click here

    Mineralization

    The Tuscarora District clearly displays gold and silver in low sulfidation epithermal quartz-adularia veins and stockwork veins associated with dacitic intrusives and structures formed along the southeast margin of Mount Blitzen. The northern silver-rich portion of the precious metals district occurs immediately north of the Project. The silver-rich area has high Ag:Au ratios (>100), strong base metals, and typically displays narrow alteration selvages around quartz-carbonate veins hosted mostly in intrusive dacite. In contrast the southern gold rich portion of the district, including the Tuscarora Project, have relatively low Ag:Au ratios (<15), contains almost no base metals, underwent local boiling, and displays widespread silicification and adularization along with quartz-adularia veins, stockwork veining, and vug-fills in tuffs and fine-grained epiclastic rocks.

    The work completed and data available are insufficient to determine the length, width, depth, or continuity of the mineralization at Tuscarora.  The historic work is not of sufficient density and veracity to determine a quantifiable mineral resource or reserve.

    Click here for the NI 43-101 report on Tuscarora effective January 15, 2018, E.L. “Buster” Hunsaker III, CPG 8137.

    Geology

    Click here to read the Geology of the Tuscarora Quadrangle Report by Christopher D. Henry.

    The Great Basin in Nevada is a westward thickening wedge of carbonate and siliciclastic rocks deposited along a craton margin over hundreds of millions of years.  The regional structural setting is simply portrayed as older Paleozoic and Mesozoic rocks above younger Paleozoic and Mesozoic rocks.  Multiple global scale tectonic events pushed eastward, developing low-angle thrust faults that juxtaposed siliciclastic and carbonate rocks. In the late Mesozoic and early Cenozoic, extensional tectonic events led to multiple volcanic and intrusive events that continue into modern times. In this region of the Great Basin, three lithologic domains developed during the Cambrian to Late Devonian. Shallow, platform carbonates and shelf-slope carbonates formed the earliest domain as a westward-thickening wedge along the passive margin edge of the North American craton. A second domain formed in the Ordovician from deep-water ocean basin siliciclastic, volcanic, and volcaniclastic rocks to the west. The third domain is the result of the Antler highland emerging along the leading edge of the Roberts Mountain Thrust with subsequent erosion and deposition of the sediments along the eastern margin of the highland and into the foreland basin. In the early Tertiary, a period of extensive silicic volcanism occurred throughout a large portion of southwestern North America.

    The Tuscarora volcanic field developed during this period and is one of the largest examples of Eocene age magmatism in Nevada. The most intense magmatism occurred to the southeast in an area that encompasses at least five major volcanic centers including the Mount Blitzen volcanic center.

    Qualified Person

    Technical aspects of this website have been reviewed and approved by the designated Qualified Person (QP) under National Instrument 43-101, Eric Saderholm, P.Geo.

    Maps


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