Tiny Gold & Silver Explorers on the Trail of Something Big
 |
| By Sean Brodrick |
I’ve been writing about the mining business for decades now. And I’m always pleased to see my friends in the business make incredible finds.
I have two such stories for you today — guys I’ve known for years, who are on the trail of something big.
One is working in the U.S., the other in Mexico.
They’re explorers — part of the mining industry that often gets little respect.
But I believe these explorers have the potential for greatness.
American Pacific Mining (USGDF) is a gold and copper explorer focused on high-grade, “brownfield” opportunities in the Western United States.
The company’s primary focus is the Madison Copper-Gold Project in Montana, a project so highly regarded that it was a finalist for "Deal of the Year" at the S&P Global Platts Global Metals Awards in 2021 and 2022.
The Madison-Broadway Connection
The Madison Project includes …
- The Broadway Mine: A historic gold producer that operated primarily between 1880 and 1950, yielding roughly 144,000 ounces of gold at an average grade of 9.9 grams per tonne (g/t).
- The Madison Mine: A more recent operation (developed 2005-2011) that focused on high-grade copper skarn, producing 2.7 million pounds of copper at grades between 20% and 35%.
For decades, everyone thought these were separate ore bodies.
But recent 3D modeling and drilling have confirmed a "structural and stratigraphic link" between the two, proving they are part of the same northwest-trending mineralized corridor.
Recent drill intercepts, such as 30.2 metres grading 24.5 g/t gold, support the company’s belief that a significant system remains in the ground, both in the skarn (near surface) and a potential porphyry (at depth).
That connection means this is much bigger than the old timers thought.
The company is cashed up and pursuing an aggressive 15,000-meter drilling program.
I’ve known Warwick Smith, the CEO of American Pacific, for years.
He’s always working on something interesting.
The Madison Copper-Gold Project looks to be his best deal yet.
Here, he explains what his team is doing this year …
What an exciting story. And I’ve got another one for you.
The Treasure of the Sierra Madre
Pacifica Silver (PAGFF) is a Canada-based explorer focused on high-grade silver and gold assets in Mexico’s Sierra Madre Occidental mountain range.
It has enough cash for the next two years and is drilling its 100% owned Claudia Silver-Gold Project, located in Durango.
The company is led by a management team with significant regional experience, including CEO Todd Anthony.
He was previously VP of Corporate Development at First Majestic Silver. And I’ve been on numerous site visits with him to First Majestic properties.
Claudia is only two hours north of Durango and right off a major highway. It has more than 30 kilometers of mapped ore-bearing veins on its property.
No wonder, then, that the company keeps coming up with exciting drill holes.
Just this month, it announced a new high-grade discovery at the Justina vein, with one drill hole returning 2.10 m at 3.53 g/t gold and 460 g/t silver.
That includes 0.80 m at 9.01 g/t gold and 1,175 g/t silver.
Pacifica is embarking on a big drilling program this year and may do more if drill results are good.
The Company You Keep
Anybody can have a good hole in the ground.
The friends gathered around that hole can speak to the prospects. And boy, does Pacifica have good friends.
The company enjoys backing from high-profile strategic shareholders and institutional funds, including:
- Eric Sprott and Sprott Asset Management
- First Majestic Silver.
- Silvercorp Metals.
- Vizsla Silver.
This tells me that the big money is betting Pacifica is on to something.
Todd Anthony will give you the rest of the scoop …
There should be a steady stream of news from Pacifica Silver as those drill results come in.
American Pacific should deliver good news, too.
Both of these companies are tiny explorers, but they carry so much promise.
Nothing is guaranteed, and explorers are the most high-risk part of the mining industry. Things can go wrong.
Still, I can’t wait to see the next chapters that come out of each of these companies.
These are the kinds of stories I’m finding.
I’m happy to see the great discoveries these companies are making and stunned at how lowly valued they are … for now.
If they dish up good news as gold and silver zigzag their way higher, these bargains shouldn’t last for long.
All the best,
Sean
P.S. If the past week of bonus Weiss Ratings Daily issues tells you one thing about me … it’s that I’m all in on the next leg of this precious metals rally.
So, when I recently uncovered this paradox, I had to record it. Be sure to watch this before gold gets moving … again.
