Rising Gold Prices Could Be Good News For This Company's Nevada Project

A drill site at the Tuscarora Gold Project in Nevada (Photo: American Pacific Mining)

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For the past few months, gold has been trading at its highest levels in over a year. Partly to blame for this is high inflation and volatility of commodity prices resulting from Russia’s invasion of Ukraine.

Gold spot prices hit a high of $1,912 per ounce in February. The precious metal extended its blistering rally by 3.5% to $2,068.07 last month as the Russian-Ukraine crisis escalated.

The precious metal seems to be continuously knocking on high doors, inching close to surpassing $2,000 per ounce for only the second time in its history, the first being in August 2020.

Rising gold prices could present an opportunity to mining players like Western Pacific Resources Corp. WRP, Newmont Corp. NEM, Novo Resources Corp. NVO NSRPF, Newcrest Mining Ltd. NCM and American Pacific Mining Corp. USGD USGDF 1QC.

American Pacific Mining Corp., a gold exploration company focused on precious metal opportunities in the Western United States, says it has been laying the groundwork to become a weighty player in the mining industry.

With five main projects — Tuscarora Gold Project, Madison Copper Gold Project, Gooseberry, Nevada, Red Hill and the South Lida project — under its wings, the junior mining company could be shaping a future of American mining.

History Of Tuscarora Gold Project

American Pacific states that at the heart of its resource exploration business is the Tuscarora Gold-Silver Project. The Tuscarora Mining District is located within a significant 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 consisted of greater than 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. 

The assay values from Tuscarora drilling to date indicate narrow shoots of high-grade gold. Newcrest also described coarse visible gold that created a metallurgical nugget effect.

Tuscarora Gold Project Prospects

The Tuscarora Gold-Silver Project consists of 215 claims covering approximately 4,272 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.

The project consists of numerous high-grade gold vein targets, including the Grand Prize Target, from which the company reported bonanza grade samples of 21,032 g/t gold and 38,820 g/t silver in 2021.

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. Phase 2 included six reverse circulation holes and one core.

The holes were drilled on either side of the South Navajo zone, hitting upon a significant 1.5 meters at 3.47 g/t gold interval 1,260 feet deep — deeper than any other intercepts thus far.

An up to 17,000 meter drill program is currently underway at the project with results expected in the coming months.

Read more about the Tuscarora Gold Project at americanpacific.ca/projects/Tuscarora.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.