Back in Blackdome: An Intriguing Cariboo Gold Exploration Project

ArcPacific Signs Option Agreement to Acquire Blackdome Property and Announces Private Placement Offering

As gold continues to glitter amid lingering uncertainties caused by the COVID-19 pandemic, the crisis is driving more risk-averse investors towards the precious metal. Goldman Sachs earlier predicted gold’s price to hit USD$2,000 per ounce within the next 12 months, given low interest rates and possible currency debasement.

Now, a Vancouver BC-based junior resource company has bought an early-stage gold mining project, in one of the world’s most mining-friendly jurisdictions, with impressive historic findings and strong prospective potential.

ArcPacific Resources Corp. (ACP) (TSX-V.ACP, Forum) has recently entered into an option agreement to acquire a 100% interest in the Blackdome property – part of the historic and minerally-prolific central Cariboo region of south-central British Columbia.

On July 27th, the Company announced that it has acquired five additional mineral claims contiguous to the recently-optioned Blackdome property located in the Clinton Mining Division, approximately 120 kilometres southwest of the City of Williams Lake. This significantly increases the total property size which now covers 3,479 Hectares. The property has been explored since 1980’s by individual prospectors and companies such as Inco Exploration. This work has resulted in the discovery of multiple mineralized zones as outlined below in Figure 1, but has never been drilled.


(Click image to enlarge)


Located in the Clinton mining division, approximately 120 kilometres southwest of Williams Lake, the Blackdome property is highly prospective for gold and silver mineralization. Interestingly, the property has been explored since the 1980s but has never been drilled. Historic findings include one surface rock chip panel sample assayed up to an eyepopping 54.43 g/t Au over 0.5 metres by 1.2 meters. Talk about high grade!

Anomalous gold-silver mineralization is hosted in quartz veins subcropping over an area of approximately 1,300 by 700 metres. Quartz veins have typical low sulphidation, banded, vuggy, bladed and chalcedonic epithermal textures. The Blackdome project is underlined by Cretaceous Power Creek volcanics and sediments belonging to the Tylor Creek Group. These two units were intruded by hornblende feldspar porphyries (HFP). Gold-silver mineralization identified in the Blackdome property appears to be associated with intrusions that possibly served as a conduit for the hydrothermal mineralization.

The company says it plans to complete an extensive data compilation program on the Blackdome project and is already planning a field program in order to better define the target areas on the property.


(Location of Blackdome Project. Click image to enlarge)


Next Steps:

• ArcPacific plans to increase the project size to greater than 5,000~6,000 hectares around the Blackdome project.
• Exploration programs in year 2020: Extensive data compilation, geophysics & trenching in target zones, and expand the open ended soil grid.
• Exploration programs in year 2021: Trenching and drilling on selected targets.

Terms of the Option Agreement:

Under the terms of the option agreement, ACP has the option to acquire a 100% interest in the property by making the following cash payments and share issuances:

• An initial cash payment of $20,000 and issuing 200,000 common shares within 14 days of the acceptance date of the TSX Venture Exchange.
• A cash payment of $30,000 on or before the first anniversary of the acceptance date.
• A cash payment of $40,000 and issuing 300,000 common shares on or before the second anniversary of the acceptance date.
• A cash payment of $60,000 and issuing 300,000 common shares on or before the third anniversary of the acceptance date.
• Issuing 400,000 common shares on or before the fourth anniversary of the acceptance date.

In addition, ACP will pay a 1.5% net smelter return royalty to the option or on commencement of commercial production. The company will have the right, at any time prior to the commencement of commercial production, to purchase 1% of the 1.5% net smelter royalty for $1 million.

To finance an initial expenditure on the project along with working capital of the company, ACP intends to raise up to $600,000 by way of a non-brokered private placement of units, where a unit consists of one common share of the company and one-half of warrant of the company to purchase one common share. The unit will be priced at five cents per unit. Each whole warrant entitles the holder to purchase one common share within one year from the closing date (as hereinafter defined) of the offering at a price of 10 cents per common share.

A finder's fee may be paid as part of the financing. As part of this non-brokered financing, the warrants are subject to an acceleration clause. This clause states that if, four months and one day after the warrants are issued, the closing price of the common shares of the company, on the principal market on which such shares trade, is equal to, or exceeds, 20 cents for 10 consecutive trading days (with the 10th such trading date hereafter referred to as the eligible acceleration date), the warrant expiry date shall accelerate to a date 20 calendar days after issuance of a press release by ACP announcing the accelerated warrant term – provided, no more than five business days following the eligible acceleration date, that the press release is issued; and written notices are sent to all warrant holders.

The closing for the offering is expected to close on or about August 31, 2020 but may close earlier or later or not at all. Closing of the offering is also subject to TSX Venture Exchange final acceptance.

All securities issued will be subject to a four-month hold period.


About ArcPacific Resources Corp.

ArcPacific Resources Ltd. is a Canadian-based, junior exploration company focused on creating shareholder value through discoveries and strategic development of mineral properties. ArcPacific own a 100% interest in the Lucky Mike Project – a mineral property located in south-central BC, near Merritt. In 2014, ArcPacific entered into a joint exploration agreement with Korea Resources Corporation (KORES) and Nexgeo Inc. for the Lucky Mike Project and concluded a 3-year exploration program in 2016. In July 2020, ArcPacific entered into an option agreement to acquire 100% of Blackdome Project – an exploration project prospective for high-grade gold and silver mineralization.


The Bottom Line

For investors looking for an early-stage exploration company with blue-sky potential and greenfield backing, ArcPacific’s Blackdome Project checks a lot of the boxes:

• Sound, experienced management team
• 100% property ownership
• Large land parcel / project size
• Historic high-grade ore sampling
• Mining-friendly jurisdiction
• Attractive shareholder value

FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.