The Madison copper-gold project in Montana, US is under option to Rio Tinto’s Kennecott Exploration
Gold exploration firm American Pacific Mining (APM) has signed an agreement to acquire stake in the Madison copper-gold project in Montana, US from Madison Metals.
Located in the heart of Montana’s prolific copper-gold belt southeast of the Butte Mining District, the fully permitted Madison past producing mine is under option to Rio Tinto’s Kennecott Exploration.
Under the terms of the earn-in and joint venture agreement between Rio Tinto unit Kennecott Exploration and Broadway Gold Mining, Kennecott is required to spend $30m to earn up to 70% of the project.
APM CEO and director Warwick Smith said: “Our corporate strategy is to build a portfolio of high-grade properties in the Western USA that will attract mid-tier partners to come in and help advance these assets.
“Madison certainly fulfils this objective and complements our growing portfolio of gold, silver and now copper assets as well.”
Madison project comprises six patented lode claims and 136 unpatented mineral claims
The Madison copper gold project encompasses 2,514 acres consisting of six patented lode claims and 136 unpatented mineral claims.
APM president and director Eric Saderholm said: “The project has infrastructure, power, roads, 3000 feet of underground development, recent production and plenty of exploration potential.
“This high-grade project includes two underground mines, the Broadway and the Madison Mines, plus two distinct geological targets: a high-grade gold skarn and a deeper copper gold porphyry system.
“Plus, the joint venture partner is currently performing a lot of exploration work to better define what may well be the feeder system for the mineralization at Madison.”
Developed between 2005 and 2011, the Madison mine generated 7,570 ounces of gold and 3,020,000 pounds of copper from bulk samples of 19,803 tonnes.
In January 2020, APM has signed a letter of intent (LoI) with Broadway Gold to acquire the latter’s interest in the Madison copper-gold project in Montana, US.