American Bullion Minerals Expands Red Chris Copper-Gold Deposit, Retains Deutsche Bank Securities as Exclusive Agent

Strategic Insights -

Vancouver-based American Bullion Minerals Ltd. has announced an expansion of its Red Chris copper-gold deposit, a significant development in the company's efforts to grow its reserves. Through an accelerated drill program, the company has intersected ore-grade mineralization beyond the preliminary open-pit design, further solidifying the deposit's potential. Additionally, geological reserves have been identified in adjacent areas, including the Yellow Chris zone. The expansion program is being supported by Deutsche Bank Securities Canada Limited, which has been retained as the exclusive agent for a private placement of 1.0 million special warrants.

Key Takeaways:

  • The Red Chris copper-gold deposit has seen its reserve potential expand due to an accelerated drill program, prompting the company to increase its exploration efforts.
  • Recently completed diamond drillholes in the main Red Chris zone have intersected ore-grade copper-gold mineralization beyond the limits of the preliminary open-pit design.
  • Geological reserves continue to be delineated in two separate areas within the adjacent Yellow Chris zone.
  • Results from 185,000 feet of diamond drilling indicate that the Red Chris main deposit is approaching a tonnage of 200-220 million tonnes.
  • The deposit maintains a grade of 0.5 percent copper and 0.4 grams gold per tonne at a 0.3 percent copper cut-off.
  • American Bullion Minerals has retained Deutsche Bank Securities Canada Limited as its exclusive agent for a private placement of 1.0 million special warrants at approximately $3.00 per warrant.
  • The proceeds from the private placement will be directed towards an expanded drill program, a prefeasibility study, and general working capital.

Statistics:

  • 185,000 feet of diamond drilling completed to date on the project.
  • Red Chris main deposit is approaching a tonnage of 200-220 million tonnes.
  • Maintaining grade of 0.5 percent copper and 0.4 grams gold per tonne at a 0.3 percent copper cut-off.
  • 1.0 million special warrants to be issued in the private placement.
  • Special warrants may be exchanged for one common share upon prospectus filing.

Sources:

  • American Bullion Minerals Ltd. news release, "American Bullion Minerals Ltd. Reports Acceleration of Drill Program at Red Chris," September 6, 1995.
  • Business Wire, September 6, 1995.