Gold price set for biggest weekly jump in 13 months on haven demand
The precious metal has surged around 30% so far this year, supported by healthy central bank buying.
American Eagle Gold (TSXV: AE) has reported a significant expansion of its gold zone at the NAK project in the Babine copper-gold porphyry district of central British Columbia. Recent drilling have extended the known boundaries of the gold zone both to the north and at greater depths.
Key intercepts include 175 metres at 1.03 g/t gold equivalent and 108 metres at 1.0 g/t gold equivalent. While these grades may not be exceptionally high, the company said the consistency of the mineralization over long intervals suggests a robust resource.
The gold zone, historically known as the South or Stockwork zone, was previously recognized for its copper and gold content. However recent data indicates that gold may be the primary driver of this zone’s value.
“NAK is easy to access and has great topography which are major advantages relative to its porphyry peers when considering exploration costs and operational and build-out costs when evaluating NAK’s economic potential,” American Eagle CEO Anthony Moreau said in a news release.
“These holes represent the first few results of the program, and we expect drilling to continue through November with consistent updates on our progress.”
The NAK project is fully funded for its 2024 drill program, thanks to Teck Resources’ 19.9% ownership stake in American Eagle. This partnership not only provides financial support but also brings expertise in porphyry systems, further validating the strong potential of the NAK property.
