American Pacific Mining's High-Grade Step-Out Points to a Larger System at Madison

0:14Eric Saderholm: This podcast has been brought to you by the American Pacific Mining. It just put out its best hole yet at Madison. M26C-02 hit 30.8 meters of massive sulfide, including 20.1 meters of 11.15 grams per tonne gold, 14.3 grams per tonne silver and 0.42 % copper. Standard internal section, 7.92 metres at 25.33 grams per tonne gold. It's a vertical step-out aimed at connecting the historic Madison and Broadway workings, and the company says the zone is thickening and staying open to the southwest with follow-up holes already added to the program. Madison is American Pacific's 100 %-owned past-producing copper-gold project in Montana, hosting the historic Madison and Broadway Mines, which previously produced high-grade copper and gold.

1:02Eric Saderholm: Orrick Smith, he is CEO and Director. Eric Sederholm is Managing Director of Exploration and a Director. Gentlemen, welcome to Mining Stock Daily.

1:10Warwick Smith: Thanks for having us, Michael.

1:12Eric Saderholm: Thank you. Eric, I want to start with you and talk about that M26C-02 hit. You said this whole area to the southwest has not been tested. It's a new idea. The area was interesting because another company drilled into it and just nicked what you're calling a structural cell.

1:35Warwick Smith: Yes, well, the interpretations in the past have been along structures that are east-west or they're dipping. You can see faults that do dip that way, but their bias has been to drill against those structures to try to define them. What we have found from drilling this hole and it being sulfide versus the oxide that's been historically mined is really the true nature of the ore. It hasn't been moved around. It hasn't been oxidized. It hasn't been violated by oxidation. So what that does is it gives us a true thickness of it as it sat when it was deposited. So what we've done with our modeling and our mapping is indicated that we do have a plunge of this particular unit, which is a very favorable unit.

2:20Warwick Smith: So the classic CRD, the near porphyry type ore body that's been found throughout the world, is plunging off to the southwest. Well, all of the holes were drilled north of us and drilled parallel with this zone and away from it into the oxidized portion. So I understand the bias that people had in the past of drilling, but we have used their data and our own data to come up with what we think is a pretty airtight interpretation of what this rock is and where it goes. So it does plunge off to the southwest, but since it is a replacement deposit, it can be found probably throughout this entire area.

2:59Warwick Smith: It just hasn't been tested. It will get deeper, obviously, but it should be preserved and it should be something that's relatively flat as deposited. And it's just been slightly folded since. So our follow up holes and our exploration holes in the area have just gained a lot more clarity.

3:19Eric Saderholm: Now, Eric, I want to follow up on the geology in a minute. But Warwick, to you, let's just talk about the structural trend where you've had a lot of holes in the north, but right now you see a structural trend that is developing to the south and it's going to be wide open.

3:37Warwick Smith: Yeah, absolutely. So this is great work on behalf of the geologic team headed up by Eric Corbin, the two Bens who do our 3D modeling, Zach, who's helped us out, Henry as well. that whole team has done an excellent job over the past call it 18 months to 24 months of targeting and putting all this 3d modeling together a 3d geochemical model mt survey mag did the geophysics got us to this point where we're now understanding this system better than anyone ever has before i mean we came into this and said it was going to be the most well-informed drill program. And certainly as we're on to hole two, I think they're doing an excellent job of proving that right.

4:25Warwick Smith: There is no drilling off to the Southwest. It is the first time that we've shown that the structures are heading that way. And so we'll have a follow-up poll on that. We'll probably start drilling that in roughly two weeks time. We're just finishing up some other holes that are down South on the project. And then we'll move the drill rig back up towards where we drilled previously. So incredibly excited. and excited to see what drilling brings us out that way.

4:50Eric Saderholm: And now, Eric, there's going to be, as Warwick mentioned, a follow-up. There's going to be a drilled angle approach to that hole, correct?

4:58Warwick Smith: Yes, we're going to actually drop a camera down into the hole to get really, really detailed, not only the structural measurements, but we're also going to be able to pick up downhole IP and some acoustic things, which are going to be quite unique, relatively affordable information. where we see that pointing us exactly, of course, will dictate the program. But without it, we do know that it's tipping off to the southwest, and it is a mineralized cell. The way these structures work, a lot of times you've probably heard, pearls on a string where you can drill and not hit, and you can hit. So we're going to avoid that.

5:34Warwick Smith: We think we understand the system relatively well. The S-hole will be drilled off from that same pad through that same zone again, which will give us further definition of the mineralization.

5:48Eric Saderholm: Now, Eric, let's talk about the geology. You said that the district is coming into focus. You're calling this a carbon replacement deposit, and you said that the thickness was unusual.

6:01Warwick Smith: The thickness is unusual there largely due to the folding. So I believe that the unit itself is probably about 50 feet wide, and here it's been folded onto itself. but a 50-foot wide zone of massive sulfide is that's pretty typical worldwide of a very large thickness. So this may be exaggerated thickness just a little bit here, but the grades are going to be spectacular, we think, and they should grade out distally into a more base metal, so say silver and lead, which would, I think, make sense. But the folding is something we have to to deal with, although it looks like it's all intact. It's just a matter of unfolding the folding, and we're doing a good job of that now.

6:47Eric Saderholm: Now, Warwick, you did have a video that accompanied the news release talking about the whole, you know, I'd suggest a viewer as a follow-up to go take a look at it, but you did have a number of targets that were shown to the southwest. Can you talk about, you know, where you are in terms of the release in terms of assays and what the timing of news is going to be, what you consider to be significant coming up?

7:14Warwick Smith: Yeah, absolutely. So we are on core hole number seven. As we speak, that hole is down about three kilometers away from where this hole is down south. We have done three RC holes as well. And so all of those are off to the lab. So over the course of the next few weeks, we'll be releasing holes as we go along. Visually, we're excited about a few of the holes. We'll see what the assay lab tells us. But over the course of the next couple of weeks here, we'll have, I would think, numerous holes released.

7:49Eric Saderholm: Warwick, where are you right now in terms of share structure? You've had a nice run-up at American Pacific, up about 50 % over the past month. We should also remind listeners about your exposure to Visa Copper, which has also had its good string of news as well too, due to your Palmer transaction that was, I guess, announced late 2025.

8:12Warwick Smith: Yeah, that's right. So as of our last financials, which came out in the end of August, we had between cash and then cash that is in escrow. We had$9.4 million. uh we have roughly if you take just the uh the number of shares that we have and take it by the uh the daily price we have roughly 22 million dollars in equities uh the bulk of that is visla copper uh and then icg silver and gold uh is in there as well which is an asset we really like called tuscarora and it's being nicely run they're drilling that as we speak so we're excited to see drilling coming from them visla copper uh being the bulk of that yes we sold them the palmer deposit they just put out a fantastic hole uh coming out of palmer as well as their bc project as well really good long runs out there so very happy to see what visla and craig and team are doing out there they also just announced a uh a transaction that looks like it's pending with a agnico eagle uh where they picked up the delta project up in alaska uh looks to be a couple million ounce gold deposit up there so historic but a uh but definitely very interesting and makes saying eco a big shareholder uh including they're going to subscribe for five million dollars of the financing as well so very happy with the uh with the work that they're doing believe that transaction is still pending but uh you know from our seat suspect that that gets done in short order as well

9:38Eric Saderholm: uh lastly um i'll start with you eric um where do you want to be at uh the end of the year you did announce the drill program in the spring. You know, hopefully all of the assays, most of the assays and a lot of the geological modeling will be through towards the end of the year. Where do you want to be in terms of understanding Madison?

10:00Warwick Smith: Well, as I was mentioning, there's a couple of light bulbs in the old marquee that need to get put together, but I think in general we have this figured out relatively well and that takes a little bit of effort. What we'll do is take a break after drilling the next three or four holes, depending on our penetration rates, and then regroup, go through the entire thing, see what we've learned, put it into context, really refine where we go to chase this. So hopefully that's a winter project. It's a good time. If we're going to drill into the winter here, it's probably one of the better places to drill.

10:35Warwick Smith: We can easily remove the snow. It's usually not too bad in the winter. So we'll probably kick our program back up in the winter regardless of the of the timing warwick uh it's

10:46Eric Saderholm: going to be uh we're in september it's uh going to be a time for uh telling the story about america

10:51Warwick Smith: over the next few months it certainly is uh with with this being the uh the first two holes released of what will be a dozen plus holes uh for the first 7500 meters a quick break and then back for another 7 ,500 meters, there's an awful lot of drill data coming. We're excited about what we're seeing. We're excited to release these upcoming holes and we're excited for this follow-up hole as well. So yes, it's going to be a busy time both for Eric in the field and then for myself being out corporately and talking about American Pacific.

11:25Eric Saderholm: Warwick Smith, Eric Saderholm, congratulations. Thanks for speaking with Mining Stock Daily. Thank you, Michael. Much appreciated. Thank you.

11:32Warwick Smith: The information presented should not be considered investment advice. Mining Stock Daily Yents affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.