American Creek Resources Ltd. (AMK:CA) (ACKRF) announced on April 27, 2015 that the British Columbia Court of Appeal had released its decision from the March 9-11 hearing on the litigation with Teuton Resources Corp. over the Treaty Creek property. The Court of Appeal dismissed the appeal in its entirety and upheld the April 14, 2014 decision of the British Columbia Supreme Court confirming that American Creek completed its earn-in and has a 51% controlling interest in the Treaty Creek property.
American Creek had been in court over the Treaty Creek property since 2010 which severely limited their ability to continue developing the property. With litigation now behind them they are eager to advance their projects, including Treaty Creek.
American Creek is a precious metals exploration company with properties located in northwest British Columbia's prolific Golden Triangle. This area has produced many operating mines in the past and currently hosts numerous world-class mining projects headed toward production. As a consequence, the area is blessed with exceptional infrastructure including a shipping terminal, excellent roads, and high-voltage power lines.
Mineralization in the Treaty Creek claims lies within the same broad hydrothermal system that generated the several deposits on the adjacent Pretivm ($PVG:CA) (PVG) and Seabridge Gold ($SEA:CA) (SA) properties. This geological system is one of the largest in the world, and extends at least 25km through all three company's claims.
While the Treaty Creek property has had minimal exploration to date, it sits adjacent to, and on trend with, 45 million ounces gold, 190 million ounces silver, and 9.9 billion pounds copper in proven and probable reserves (125m oz Au, 580m oz Ag and 29bn lbs Cu all categories included) representing one of the greatest concentrations of metal value on earth. Both Pretivm and Seabridge are moving their projects towards production which is projected to exceed a combined one million ounces gold annually, with nearly equivalent values of silver, copper and other metals.
Seabridge Gold's KSM feasibility study calls for twin tunnels to be constructed through the heart of the Treaty Creek property. Should American Creek come to an agreement beneficial to its shareholders with Seabridge, this could potentially provide infrastructure including roads and power to the property.
Both Pretivm and Seabridge have had tremendous success using a technology called a Magnetotelluric survey, or MT survey. This technology is very accurate in determining porphyry bodies. Using this MT technology, Seabridge made major new discoveries including the Deep Kerr Zone and Iron Cap Lower Zone, both considered core zones with considerably higher grades than their other porphyry deposits.
An uncompleted MT survey on Treaty Creek has revealed the potential for two major discoveries of core zones or large porphyry deposits; one of which is relatively close to surface in an area with successful historical drilling and also intersected by Seabridge's proposed twin tunnels, the other at depth.
The near surface MT anomaly has a direct correlation to a strong magnetic high that covers 9 square kilometers of surface area. These coinciding anomalies are underlain by the Sulphurets thrust fault. This fault system extends onto Seabridge's property and is directly related to the Kerr, Sulphurets, Mitchell, and Iron Cap deposits. 2007 and 2009 drilling by American Creek near (but not overlapping) these coinciding anomalies produced core results similar to initial holes drilled on Pretivm and Seabridge porphyry deposits. The large MT anomalies were unknown about until 2012 and, given the litigation; no drilling has been conducted on Treaty Creek since. This MT survey can potentially be used (as it has been throughout the rest of the regional geological system) to provide highly accurate drill targets at Treaty Creek.
The Treaty Creek property may also host a volcanogenic massive Sulphide (VMS) system as well. This is a smaller, more defined system with higher grades of both precious and base metals and is located only 15km from the Eskay Creek (VMS) mine; one of Barrick's ($ABX:CA) (ABX) most profitable historical mines.
Allan Burton, president of American Creek, stated: "Now that this litigation is behind us we can again turn our focus towards adding value to our shareholders through exploration and development. We just acquired an exceptional new property, the Gold Hill, that we're excited about. Also, recent work done by Seabridge Gold on their KSM project adjacent to Treaty Creek has given us new insights into existing data that make Treaty all the more prospective and may allow it to be advanced much quicker than previously thought".
All in all, it appears as if American Creek Resources is now poised to move the company and its projects forward toward a successful future. This is one story to keep watching.
Visit www.americancreek.com to stay up to date with the Company's progress
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