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American Eagle Gold has promising assets in the gold fields of Nevada

Snapshot

The Nevada-focused explorer’s flagship Golden Trend property is located on the Cortez Trend, next door to Barrick Gold and Newmont Mining’s Gold Rush and Cortez Mine, which host over 27 million ounces of gold

American Eagle Gold - American Eagle Gold has promising assets in the gold fields of Nevada

Quick facts: American Eagle Gold

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TSX-V:AE

Price: 0.14 CAD

Market Cap: $7.95 m
  • The 2,286-acre Golden Trend property is comprised of 111 claims
  • American Eagle Gold is part of the Ore Group led by Stephen Stewart
  • Focused on lower risk assets in Nevada and western United States

What American Eagle Gold does:

American Eagle Gold, a part of the Ore Group led by Stephen Stewart, is focused on exploring for a world-class gold deposit on its flagship property, Golden Trend, an asset strategically located in a top tier mining jurisdiction in Cortez, Nevada.

The company’s 2,286-acre (925 hectares) Golden Trend property is located on the Cortez Trend, next door to Barrick Gold and Newmont Mining’s Gold Rush and Cortez Mine, which host over 27 million ounces of gold.

The company plans to drill and advance its relatively unexplored property and continue to focus on acquiring and advancing gold projects in the area.

According to the management team, the company is focused on lower-risk assets in Nevada and western United States. The company’s strategic philosophy is to have a strong footprint in the Silver State, one of the most prolific and investor-friendly gold jurisdictions in the world. Around three-quarters of all US gold production comes from Nevada. It produces 5.6% of the world’s gold, ranking it as the fourth-largest producer, right after Australia.

The company has strong in-house technical and financial expertise. Mining industry veteran and chartered financial analyst Anthony Moreau is the CEO and a director of American Eagle Gold. He is also a director of publicly listed QC Copper & Gold and Orefinders Resources and has previously worked with IAMGOLD.

How is it doing:

CEO Anthony Moreau has said American Eagle Gold is on track to go public in April 2021. The Nevada-focused explorer is also well-funded with approximately $3.6 million in cash and over $4 million in working capital. “One of the important lessons that I have learned is always to leave yourself with a margin of safety and a healthy balance sheet. At any point in time, I plan to have at least one year of cash available,” Moreau said in a recent interview with Proactive.

In July 2020, American Eagle Gold entered into an agreement to acquire the Golden Trend Project in Nevada from Rubicon Resources Inc. Before Rubicon Resources, Kinross Gold owned the project but only drilled two exploration holes. Despite having numerous owners in the past, the property remains relatively unexplored with next to no historical drilling at depth.

The 2,286 acre-Golden Trend property is comprised of 111 claims with well-maintained road access. The project is only a few miles from two major operating mines (Pipeline and Cortez Hills) and two major developing projects (Gold Rush and Fourmile) with full infrastructure developed. The company says adequate power is available, as well as all necessary services. The project is fully accessible by three maintained county roads that either pass through it or nearby on all sides.

It is sought after real estate, given it is strategically located within the prolific Battle Mountain–Eureka trend. It lies immediately adjacent to the Goldrush deposit property and southeast of, and along the same structure as Barrick Cortez mine. The company believes Golden Trend shares similar geology to Barrick's Goldrush deposit, however it has seen only limited exploration to date and is therefore considered an early exploration stage opportunity.

The company is targeting a high grade, underground deposit in proximity to more than 75 million ounces of known gold resources. According to the company, Carlin-type deposits can be “extremely large and high-grade, supporting both open pit and underground operations.” The company believes the gold is extremely “fine-grained and occurs in disseminated pyrite or hematite (if oxidized).”

The company’s next steps for exploration hinges on defining the relationship between the Northwest-trending and Northeast-trending structures to mineralization. It plans to conduct detailed structural mapping and geophysical surveys (MT, Mag) to delineate deep zones of sulphide mineralization.

The geology, geochemistry and alteration at Golden Trend are like that at the nearby, on-trend, Cortez Hills and Gold Rush deposits, so the company’s priority target is a clone of these deposits. “The mineralization is controlled by structure and rock type, so our 2021 work program will consist of some additional detailed geochemical and possibly geophysical studies to refine our understanding of the structural architecture, followed by drilling of several drill holes focused on projected structural-lithologic intersections that appear to have the highest probability of hosting gold deposits,” according to Moreau.

Since there appears to be a “strong gold-bearing hydrothermal system present at Golden Trend,” the company said it also has a secondary target possibility of deposits “emplaced in non-reactive rocks that have been structurally prepared by faulting and fracturing.” Again, the geochemical and geophysical studies will refine this possibility, and drilling will follow shortly after that.

Inflection points:

  • On track to go public in April 2021
  • Consolidation and acquisition to grow portfolio in Nevada
  • Compiling geochemical, geophysical studies and data to generate high-potential drill targets at Golden Trend

What the boss says:   

In a recent interview with Proactive, American Eagle Gold CEO and director Anthony Moreau said: “Big gold systems hang out with big gold systems, and the Cortez is as big as it gets, and we are right on-trend. Being attached to Nevada Gold Mines’ property makes it a logical takeover candidate if a deposit is found.”

“The further you are away from Barrick and Newmont's property, the less economic it becomes to leverage nearby infrastructure. Our real estate position is quite enviable.”

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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American Eagle Gold lists its shares on the TSX Venture Exchange under the...

American Eagle Gold Corp. (TSXV:AE) CEO Anthony Moreau tells Proactive the Toronto-based group has begun trading its shares under the symbol ‘AE’ on the TSX Venture Exchange. Moreau says the group is very excited about its Nevada-based flagship asset, the Golden Trend Project, which he says is...

on 05/03/2021

5 min read