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The Electrum property was the home of an ultra-rich but ultra-tiny mining venture in the past. The grades are excellent, in the 440-g/t range, over narrow, .5-meter width. They need a lot more than that. The company has completed 8,700 meters of drilling this year but with labs backed up, few results have been announced to date.
I visited the Treaty Creek project adjacent to projects owned by Seabridge containing 17 million ounces of gold and 4.5 billion pounds of copper as well as being just north of a project owned by Silver Standard containing 3.5 million ounces of gold. Since there are no results from this year's 5,000-meter drill program, all I can say it that they have some interesting potential.
American Creek is committed to $5 million in exploration and 100,000 shares to earn 51% of the project though they can earn another 9% by completing a feasibility study. That's a big whack. It's an interesting property loaded with bright red mineral indicating gossans. It's an area play more than anything else. Should Seabridge or Silver Standard make a production decision, they would want the AMK Treaty Creek property should drill results indicate a real resource.
I went to Seabridge's website and looked at their numbers on the grade of the gold and copper resource. They show a grade of .72 g/t for gold and .18% for copper. That's $32 rock and even with a giant almost 600 million-ton resource, it's barely economic that far out in the boonies. I would want to see a far higher-grade starter pit for American Creek if they want to be serious about being a buy-out candidate.
American Creek need to focus on their core projects. I couldn't even figure out from their website what they were. They are trying to keep too many balls in the air and no one I know can do it successfully. The lack of hard assays on drill results is crippling the company and has whacked 75% off the value of the shares.
AMK is up to 60 million shares on a fully diluted basis already. If they don't focus, the company runs a very real risk of spinning wildly out of control. It's far better to have one great project than 10 mediocre projects which investors can't understand in any case. Their immediate future rests on coming up with some really solid drill results. That's dangerous.
We don't own shares. I like the management but they do need more Indians and fewer Chiefs. A lot of money is going for management in relation to what is going into the ground. The company is far more focused on promotion than on exploration. They need to define their core competancy and stick to it.
American Creek Resources
AMK-V $.70 Canadian
(Oct 9, 2007)
49.1 million shares outstanding
American Creek website
Bob Moriarty
President: 321gold
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