On Tuesday, American Creek Resources (TSX: V.AMK, Stock Forum) and Teuton Resources (TSX: V.TUO, Stock Forum) said jointly that assay results from their Treaty Creek project near Stewart in northwestern B.C.
The companies said that the results showed there was a gold deposit on the site, and that the size of that deposit remained to be seen. In particular, the companies highlighted a discovery hole (CB-14) at the northwestern edge of the Copper Belle zone, which showed 241 metres of 0.8 grams per tonne of gold and ended in mineralization.
American Creek shares rocketed 50% to close at 27 cents, and Teuton Resources shares surged more than 53% to 33 cents.
While the discussion at the American Creek Bullboard was limited to a post of the release, Teuton regulars talked up the company’s landholdings, and suggested that management might need to take steps to protect the company, which at $11 million, is much smaller than its neighbours.
Lirpa94 opined that Teuton might be better positioned for share price appreciation than American Creek. “Nice thing about TUO, perhaps more so than AMK, is the many other prospects they have in the wings. One or two aditional promising discoveries and this company will go bonkers. Based on this and other criteria I've dumped most of my AMK and SVG shares in favor of TUO ............ they have lots of irons in the fire. I agree with you ranman, $2.00 - $6.00 per share looks realistic, if not right away, not too far down the road.”
Other companies have land holdings in the area, notably Seabridge Gold (TSX: T.SEA, Stock Forum), as pointed out by several on the Bullboard. Seabridge is expected to produce a 43-101 compliant resource calculation this month.
“I guess the value of the Treaty Creek property that Seabridge needs for the twin tunnels just went up drastically ? The resource is in the ground at Treaty and if Seabridge stock value can be worth more than $25.00 per share , Tuo will be heading up big time compared to the .30 at the moment” wrote stranger5.
And omniportent added: “Seabridge gold has a market cap over $1 billion because of their KSM property which is right next door to TUO's Treaty Creek. Teuton, on the other hand, has a micro-sized market cap of just over $10 million. It doesn't take much of an imagination to see that TUO will be moving way higher if the Treaty Creek deposit keeps hitting monster intercepts like it did today.”
