American Eagle: The NAK Story Just Got Bigger

0:16Mining Stock Daily: All right, everybody, welcome back into Mining Stock Daily. We're getting a corporate update here from the Knack property with our friends from American Eagle Gold. They do trade on the Venture Exchange with the symbol AE and on the OTCQB with AMEGF. This is the first MSD update with the company since their huge 50 ,000 meter drill program, largest at NAC ever scheduled here. So happy to welcome in CEO, Mr. Anthony Moreau once again. Tony, I can't wait to, it's been a long time. I can't wait to see what my morning has in store, how many Tony is as we're going to get here the next few minutes, but good to see you, my friend.

0:59Yeah,

1:00Anthony Moreau: maybe, maybe one, but yeah, thanks for having me on. Just put out, I think we put out three news releases so far. So 55 ,000 meters of drilling. One of the largest programs in BC, at least for an exploration company, we'll be having our drillings lasting until April. We're going to have no off season. So by the time our last assays come out for the 2026, 27 season, we'll be drilling again for the 2027-28 season. So I had two big goals at the beginning of this year is to bring a big fish in, a big investor, someone that people follow and get past that kind of$1 barrier. And Eric Sprott's the guy is the very best junior mining investor out there.

1:41Anthony Moreau: People follow his great track record. And then that kind of dovetails to allow me to kind of conquer our second goal, which was essentially to have no off season. As you know, you interview a lot of companies. it's really frustrating because you essentially have six months of news and then six months of no news, and that's where your kind of stock sells off. So even if you end the season on a great result, you lose all momentum. So now we're able to do that in year five, and we're drilling as many meters this season that we've drilled cumulatively since we got onto NAC in the first place. So I always tell people, look at our track record, look at the empirical evidence, look at what we've been able to do.

2:17Anthony Moreau: And, you know, if I was a betting man, I'd bet we're going to continue you'll find really great things and hopefully get another re-rate with the amount of meters we're doing. Yeah.

2:25Mining Stock Daily: All right. So you did mention we are starting to see first of those assays from this big program starting to arrive. I think you mentioned three news releases with assays. So before we start getting into some of those individual holes here, Tony, what has the first part of the program taught you about NAC that perhaps you and the team didn't quite understand at the end of 2025?

2:50Anthony Moreau: I think the big thing is this most recent hole that we put out. Our first five holes, so I would say two of the first five holes we had, they were extending the high-grade south zone. So one was moving it northwest, the other one was moving it northeast. Happy to see it continue to grow both in long intercepts of well over 0.5 % copper equivalent. One of them was actually over a kilometer of over 0.4, which is unreal. Three of our other holes were, they're essentially holes are going west that we're just kind of pushing what we can see as the potential pit. So they were low to moderate grade, but, you know, we think that those holes could go into the pit.

3:35Anthony Moreau: So, you know, for big companies looking at, let's face it, we'll likely not build this mine. I won't say it's 100 % we won't, but we've got to do some drilling for the development studies for the mining companies because that's what they're interested in. So not all the holes are sexy. The big hole that kind of changed a lot of stuff for this year was the hole that we just put out yesterday. Hole 89 completely surprised me. It went west, and for the first 400 meters, it was over 0.4 % copper equivalent from near surface. And that's absolutely amazing. And we didn't think that high grade, at least for BC, continued that continuously going over east.

4:18Anthony Moreau: And it's kind of changed a bit of our program this year because we were planning just to stop there. And now we're kind of planning to put four or five more holes because we have, I don't know if I was interviewing with you in 2023, Trevor, but hole nine, we called the tech hole. It was going north. We always thought there could be another south zone. Really, that's the key. You've got to find two south zones. You've got to get over 500 million tons of over 0.5 to make this attractable for any major. And my thought was, and I kind of just told the market this, we're drilling in the wrong direction, but we never went back there.

4:54Anthony Moreau: It was expensive to go back there. There's helicopter drilling. Obviously, you can miss. But now we're going guns blazing, and we think that there could be another south zone south of that stock margin. I don't think people are really paying attention to that. You can read the TV's. We put some information out in the news release, but that's kind of really changed the way that we're looking at our program this year. And some of our feedback from our partners is that there could be really high grade zones all along the contact of that porphyry stock. So I would say we've only drilled about 35 % along the porphyry stock.

5:27Anthony Moreau: We haven't really hit the east side of it. We haven't hit the north side of it. So a lot of our drilling now is going to be focused towards there. We're not doing helicopter support this year. So a lot of our drilling was kind of focused in areas that we have drilled before, small stepouts. Because to save money on helicopter support, we just build a really complex road infrastructure. So for the whole season, we can drive anywhere and with skid drilling. So right now, we're about to really start those stepouts in areas, you know, for the last four years, we would only be able to access with helicopter.

6:04Anthony Moreau: And, you know, big thanks to Pete McGinnis, Steph McGinnis, Jay, Fred from ITL for helping to build that. They're not just drillers. They're, you know, they're road builders too. They've been doing a good job. Yeah.

6:14Mining Stock Daily: So let's maybe spend one more minute here on this hole 89, which was just reported this week. As you mentioned, that moves the next story east of that south zone. 411 meters, a 0.43 % copper equivalent. It just starts 47 meters down hole. and that was within 880 meters of 0.3%. So obviously moves everything east and there's a cross-section image people can go check out on the news release. But my follow-up question here, Tony, is does this look like the eastern continuation of one enormous mineralized system or are you beginning to see evidence of a distinct zone associated with those southern margins?

7:00Mining Stock Daily: What do we know? and maybe ask more questions than answers?

7:05Anthony Moreau: I asked Neil this, our VPX, and he gives a pretty easy answer. He goes, let's see after we start drilling more holes going east. From the looks of it, it looks like there's a little bit of break between the south zone and where we kind of drilled 89, not much for break. But look, I think the most important thing is that we hit in those holes. And whether it's two different porphyry centers or a continuous one, you know, good problem to have. So as long as we keep on hitting on these step outs, I think that's going to be a big, big game changer for the company. Yeah.

7:41Mining Stock Daily: So the South Zone is getting a lot of attention here in these early drill releases in this campaign here, right? So maybe what do you know about the geological model? And maybe is a strategy, what is the strategy with the South Zone specifically? Are you looking to find the boundaries of this thing or looking to really develop more ounces and pounds in the ground?

8:03Anthony Moreau: So like our drilling this year, we're doing 55 ,000 meters to get inferred resources. So we're going to be doing an MRE after this season is done and then hopefully follow that up with a PEA. But, you know, we're working with some consultants and the big one that we have is that the amount of meters, the amount of holes that we're going to do, we'll be able to hit our whole property, our whole area of interest. We're lucky because we don't have like another area of interest, you know, 10 kilometers away. So those 80 holes, 55 ,000 meters, if there's mineralization, they'll bring everything at least in the minimum to an inferred.

8:42Anthony Moreau: Now, you know, you also, you know, those inferred can bring, be brought to, you know, higher grade resources later, later on. But we got to prove that this can be, you know, a mine at the very beginning. And that's why we're having those tighter spaced holes in the south zone, because we would like to get those to actually, you know, M &I or even if you're lucky, P &P at the end of the season. So that's why you're seeing those higher grade holes. So we actually want to define actually a mine in that south zone. So part of it is to get to those better quality, you know, resources. But the other thing is to expand it.

9:13Anthony Moreau: And, you know, to be able to expand those high-grade areas that have intercepts of 500 meters, a 0.7%, even if it's 50, 100 meters, that's economical. So our south zone focus is a little bit different than the rest of our property. Now, if this south stock zone area with 09, 89, if it continues to hit, which we hope it does, then there'll be some tighter space holes around there. It's kind of early days there, but we have one rig just focused towards that area. So, yeah, like, it's funny. Like, our stock sold off a bit. We're a$260 million company, Trevor. So you really need a re-rate somehow.

10:00Anthony Moreau: So how do you make a re-rate? You make a whole new discovery, which hopefully we're on to right now with this 89 and these holes that we're having to sell stock zone. So that's how you kind of get from that$1.25 level we're at to$2. The other way you kind of do a re-rate is two ways. You bring institutional money in. So there's two ways you do that. You know, you get to the point where you're close to a sale and these companies are looking to come in. So like these big funds come in, you do road shows, et cetera, which we're starting to do right now. I think we've got a lot of retail, we've got a lot of following, but we've got to get new investors in.

10:36Anthony Moreau: So we'll be hitting the roads there. But the other thing, like you look at Hercules Metals, Nothing changed when they went from a$200 million to a$400 million market cap, except they brought new management in. And that new management just made a$2 billion sale. And they brought some of that money with them. So the funds followed George Ogilvie. And they've done a tremendous job at it. But what I'm saying is we got to do that, but probably got to do it a little bit different way because I'm not going anywhere. I was going to say, are you relinquishing your position here for high-flying caliber CEO, Tony?

11:09Anthony Moreau: Well, if I thought there was a big difference there, like, look, if we thought we could bring in a new CEO and he can get her stock to$3,$4, I'm not going to stand in the way. But I think it's a little bit different. Like, I'm focused on capital markets. I'm focused on marketing. I think we've done a really good job, Steve and I, being able to lower our raise of capital in the last four years and bring in$70 million with essentially three investors that are still holding on to stock in Eric Sprott Tech and South32. So that's the CEO's job. We think we've done a good job of that. And quite frankly, people that are following the story, if you think it's undervalued, maybe it'll be undervalued for a little bit longer.

11:47Anthony Moreau: It allows people an entry point. So I'm hitting the road pretty heavily doing institutional sales in the next couple months. So we're hoping there'll be some big buyers coming in. Buyers that don't care if you come in at$1.25 or$1.35. But yeah, about 45 % of our shares are very tightly held with those three investors I talked about earlier. Yeah. Yeah.

12:06Mining Stock Daily: I do think as far as the exploration work, catalysts will remain. You have a massive drill program underway. It's still early days here with this program here, Tony. And so, you know, expansion will also be a potential catalyst for NAC really defining what the overall scale can be ahead of those technical reports, as you mentioned. But part of that is obviously in an industry where we really hang our hat on headline holes, high-grade, long intervals. What gets least mentioned, however, are some holes where maybe they are not headline holes, but still help define the story, geological stories of what these projects really are.

12:48Mining Stock Daily: And so I did want to kind of ask you a little bit more on your Western holes. That'd be holes 84, 86, 88. Obviously not headline holes, but you specifically pointed to their implications for the footprint of NAC and potential pitch geometry, maybe even a strip ratio when those technical reports kind of start popping back in with the preliminary economic assessment. How important are those kinds of holes at this stage here for you and the company?

13:16Anthony Moreau: Look, they're important. They're important for the mine builders. Like I said, the business model for a lot of these exploration companies, including myself, is prove that you can be a mine, de-risk yourself, and allow a company that's job is to build mines to buy you to kind of take the next step past the baton and you got to do some of those holes so you know if you don't drill those holes to you know maybe to the public they can think it's blue sky maybe there's something there but to the miners they count it as a zero so at some point you do have to drill those holes for the miners may become lucky come up with some super high grade zones but anything that's above cutoff 0.15 0.2 copper equivalent goes to the processing facility and those holes have pretty long intercepts of over 0.2 so we're happy with that and I guess if you want to kind of visualize it imagine having a pint glass and you put a sugar cone inside it in order to get to that in order to get the middle of that sugar cone you got to get to that outside of the the pint glass so all all that stuff around that sugar cone inside the pint pint glass has to either go in the pit or it has to be waste so essentially we're doing waste to ore conversion drilling some of those holes, just three or four of them, and they hit.

14:28Anthony Moreau: So maybe that's hard for people to follow, but those are some of the holes that have to be hit. And I talked about lowering our cost of capital. That was really important to us. We wanted to be able to drill. And look, your expectation in this business is to miss. I find a lot of investors or critics, they'll find more reason to sell you than to buy you. So we wanted to be in a position with our cost capital low enough that we could take those big swings and drill to kill. So we're drilling right now right in the middle of the porphyry stock, away from any holes and seeing if we have anything.

15:02Anthony Moreau: And, you know, if we don't have anything there, I think for the most the public doesn't expect to be anything there and we're not going to be killed by having not a great, you know, release. But we'll be drilling everywhere on our property. If you just put 200-meter grids in a square, that's where we're drilling at NAC. I think the question is not whether we're going to drill certain targets If you look at our property, it's the sequence of when.

15:23Mining Stock Daily: You have expanded your land position here extensively from 1 ,600 hectares to 9 ,000 hectares. You've got a lot of capital. You've got a lot of land. You've got a lot of drilling capacity. And obviously, we're seeing extensions and scale improvements with this south zone. But let's talk about the next level of aggressiveness exploration, Tony. you've got the luxury to do that. Where do you see some blue sky potential here, maybe in that land package that others are, that, you know, many people may be overlooking? You're talking about the Eagle Plains stuff? Yeah.

16:04Anthony Moreau: Yeah, so, you know, I'll kind of bring it back. So as everyone knows, we did a hostile takeover attempt on Pacific Booker. It's about seven kilometers southwest of our property. we got onto this whole thing because two years ago, two and a half years ago we saw that they were letting go of a lot of their land package, which we thought was really bizarre to hold that land would cost about$250 ,000 and you essentially can't take it back, so once it goes out in there into the into the ether anyone can pick it up, so before they dropped it, we said, we contacted them, I said, are you guys serious about this company, like why are you letting go of this land, we're trying to structure some sort of deal, whether it buy the land from them, buy the company, whatnot.

16:50Anthony Moreau: And the preference was just to let the land go. And we always kind of had our eyes on Pacific Booker, but right now how it is, it's right next to a lake. It's really tough to permit. And it's 250 million tons. I mentioned before, in order to build a mine for these big miners, you got to be at least twice the size of that. But we know that big ore bodies hang out with big ore bodies. And we thought that other land was really prospective. Miranda thought it was prospective. It just never got drilled. So we were really upset when they dropped that because it just makes our job a lot harder. But luckily, Eagle Plains was the one that took on most of the land.

17:25Anthony Moreau: And they have a different business model than us. They're project generators. They option it off and hoping that, you know, someone else can spend the money to make a discovery. They hold a small portion of it. And we really liked it. And we didn't buy it because, you know, we wanted a position next to the booker. We bought it because we thought it was prospective land that has a really good chance to make a discovery. And of all the land we see in the Babine region, we like that land the most. So we did the deal with EPL, giving them a head. They're a great company. They made a lot of discoveries.

17:55Anthony Moreau: They use an arm called Terralogic. And, yeah, we've already spent$100 ,000 on it, doing some geochem. Next year, I think we'll spend about half a million dollars on it. And hopefully get to a position of drilling either next year or the year after. And that kind of adds another big catalyst for a company to be able to have another discovery where you can share yellow trucks is really important. So that is the property that is the land in our area that we like the most. Very cool.

18:24Mining Stock Daily: All right. All right, Tony. Thanks so much for the update. Long overdue. Look forward to be providing more coverage here with this massive drill program in the weeks and months ahead with you as we get into a lot of conference season. and a very busy fall and winter all throughout this market. But I appreciate your time. Thanks so much for the updates, and we'll talk to you again soon. Thanks, Jeff. Yep. American Eagle Gold Trades on the venture with the symbol AE and on the OTCQB with AMEGF. The information presented should not be considered investment advice. Mining Stock Daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein.

19:07Mining Stock Daily: Please do your own research or speak with a licensed financial representative before making any investment decisions.