American Eagle Gold delivered a +500% growth

Marc Zerbola Challande
minute read

American Eagle Gold Corp (TSXV: AE) is a Canadian exploration company that saw its stock price increase by +500% over the last month. This sudden growth is explained because the company shared significant news about the drilling report. American Eagle drilled 125m of 1.02% copper equivalent (CuEq) from the surface within 851m of 0.33% copper equivalent in the maiden drill hole at NAK. The company is currently processing a 5,000m drill program to test the potential for a mineralized footprint greater than 1.5 km x 1.5 km.

About American Eagle Gold

American Eagle Gold Corp is focused on exploring world-class gold and copper deposits in North America, with its flagship asset named NAK, a copper-gold property located in British Columbia and more specifically in the Babine Copper-Gold Porphyry district. The company is exploring two holes, and the first hole gave outstanding results. Here are the highlights:

  • The maiden hole returned 851.28 m of 0.33% copper equivalent ("CuEq"), including 126 m of 1.02% CuEq from surface
  • All 5 holes ended in mineralization at up to a maximum depth of 984 m downhole
  • Strike length of mineralization encountered in holes NAK22-01 to -05 is 730 m and is open in multiple directions
  • Results indicate a potential system footprint over 1.5km x 1.5km X 1km depth, open along strike and depth
  • Assays for holes NAK22-02 to -05 are pending. The current drill program has been expanded a further 2,000 m to define the geometric extent of a potentially significant copper-porphyry system

"Our objective at NAK is to discover a world-class copper-gold deposit with a high-grade core at depth. Today's results exceeded our expectations. We have encountered mineralization in every hole and intersected a wide, high-grade interval from the surface on the first hole. The bounds of the system are entirely unknown, including depth extensions of high grade. These early results set us up for an exciting remainder of 2022 and 2023." Anthony Moreau, American Eagle CEO.

The company shared on December 5, results about its hole 2: below 800 m, two intersections of plagioclase porphyry dykes, up to 20 m wide, and with increased bornite-chalcopyrite quartz vein densities, returned grades as high as 2.81 Cu. Also of note is a 1 m intercept, from 238 to 239 m, of a chalcopyrite-quartz vein-breccia displaying epithermal textures. It returned 20.4 g/t Au and 1.95% Cu (16.36 CuEq %). Throughout NAK22-02, trace molybdenite is commonly present along fracture planes, and occurs as sporadic flecks within mineralized quartz veins. The molybdenum concentrations are significant and contribute positively to the overall copper equivalent calculations.

Historical exploration started in 1964-1971, with Noranda Exploration completing soil and geophysical surveying and 18 BQ holes for 1,837m. Until 2019, the area was primarily used for exploration. In 2010-2014, Copper Ridge and Redtail Metals completed a helicopter ZTEM and magnetic survey comprising 1,083 line-km and ground IP and magnetics, and after further explorations in 2016-2019 done by Generation Mining, NAK Mining in 2021 digitized, analyzed, reinterpreted, and modeled all historical data for the first time on this property. Independent geophysical and geochemical analysis was completed for historical data. The company recently applied for a five-year, multi-hole drill permit. 105 diamond holes were completed for 18,475m, averaging 175m in length and an average vertical depth of 150m. However, only four holes were drilled below 300m vertically and failed to test the top of the coincident magnetic and ZTEM anomaly, which starts at a depth of 500-600m.

Regarding property infrastructure, it offers many benefits. The property is easily accessible by road from Smithers, BC, and doesn't need to access by helicopter. An exploration camp is nearby, and the infrastructure has access to water and is clear-cut by the forestry industry with a low elevation. All we can say is American Gold Corp gathers many advantages investors want to see.

American Eagle Gold is part of the Ore Group. Ore Group has in-house technical and financial expertise and is focused on exclusive jurisdictions and metals with solid and long-term fundamentals. Ore Group gathers Metal Energy (TSXV: MERG), Baselode Energy (TSXV: FIND), Mistango River, QC Copper & Gold (TSXV: QCCU), and Orefinders (TSXV: ORX).

Anthony Moreau, CFA-CEO & Director, leads the company. Mr. Moreau has over 10 years of experience in the mining industry and was previously with IAMGOLD in business development and special projects. Anthony Moreau is also the director of the Young mining Professionals Toronto and co-founder of the YMP Scholarship Fund.

Share Structure

American Eagle Gold Corp is traded on the TSXV exchange under the AE ticker since May 3rd, 2021. The company has strong fundamentals. The company only has 69.7M shares outstanding, combined with 16M warrants (avg. price: $0.27) and 6.5M options (avg. price: $0.20), for a total of 92M shares fully diluted. Another factual information is the balance sheet. The company has $1M in cash for $1.4M in total assets, with only $811k in total liabilities. Over the last quarter, the company spent $1M in expenses, and $904k was accounted for exploration and evaluation expenses, totaling a $0.02 loss per share, basic and diluted. Another relevant piece of information is insiders and funds own 54% of the share structure.

About the share price, American Eagle Gold's stock price is around $0.25, up +500% compared to a month ago. American Eagle Gold's 52-week low is worth $0.02 compared to its 52-week high of $0.335. The stock price remains steady, but future news about hole 2 should boost the stock price to new highs.

Bottom Line

American Eagle Gold Corp (TSXV: AE) is on track to witness tremendous growth. The first hole delivered solid results, and there is no reason other holes would differ. After topping a 52-week, the stock price is steady, which is a good time for accumulating. More news should come, bringing more interest and excitement about the company.