Peter Grandich, a seasoned financial commentator and author with decades of experience in the resource sector, recently shared his insights on American Pacific Mining (Ticker: USGD.c or USGDF for US investors) in a video update. Grandich, a blog sponsor and USGD stakeholder, discussed the company's recent achievements, focusing on its 100% acquisition of the Palmer VMS Project in Alaska and its growth potential.
Palmer VMS Project and Recent Deal
American Pacific Mining recently finalized its acquisition of Dowa Metals & Mining Alaska Ltd.'s interest in the Palmer VMS Project, giving the company full ownership of the advanced copper-zinc-gold-silver exploration project. As part of the deal, the company also secured USD$10 million from Dowa. Key terms of the transaction include:
- Full control of the Palmer Project through American Pacific’s subsidiary, Constantine North Inc.
- Dowa retaining an option to acquire up to 50% of the zinc concentrate from future production.
The Palmer Project, located 60 km from the port at Haines, Southeast Alaska, is a high-grade asset with NI 43-101 compliant resources totaling 14.27 million tonnes of mineralized material. These resources include:
- Indicated: 4.68 million tonnes at 10.2% zinc equivalent.
- Inferred: 9.59 million tonnes at 8.9% zinc equivalent.
With over USD$116 million spent on exploration to date, Palmer has a strong foundation. A Preliminary Economic Assessment (PEA) completed in 2019 outlined a low-capex, high-margin underground mining operation with a post-tax NPV (7%) of USD$266 million.
Strategic Outlook
In his video, Grandich emphasized the transformative nature of the Palmer deal and the management's ability to secure favorable agreements. He noted three potential paths for the project’s future:
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Developing it themselves
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Forming a partnership with a company experienced in Alaskan mining.
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Selling the project outright, which Grandich views as the most favorable option.
He estimates the project could be worth USD$20–25 million, a substantial portion of the company’s current market cap, and expects a decision on the project’s direction to be made before upcoming industry conferences in early 2025.
Broader Portfolio
Beyond Palmer, American Pacific Mining also holds:
- The Madison copper-gold project in Montana
- Three high-grade gold and silver properties in Nevada—Ziggurat, Gooseberry, and Tuscarora.
With USD$10 million in funding from the Palmer deal, the company is well-positioned to continue exploration across its portfolio.
Full video here:
Posted on behalf of American Pacific Mining Corp.