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Sprott-backed JV trio on high as Goldstorm grows

Three Sprott-backed joint venture partners are on a high after reporting a step-out hole at the Treaty Creek project in British Columbia grading 0.683g/t gold over 780m.
Sprott-backed JV trio on high as Goldstorm grows Sprott-backed JV trio on high as Goldstorm grows Sprott-backed JV trio on high as Goldstorm grows Sprott-backed JV trio on high as Goldstorm grows Sprott-backed JV trio on high as Goldstorm grows

Drilling at the Goldstorm zone at the Treaty Creek JV in BC

Staff reporter

A second rig is being sent to the project, which is operated by Tudor Gold (TSXV: TUD), with both American Creek Resources (TSXV: AMK) and Teuton Resources (TSXV: TUO) holding free-carried 20% interests until a production notice is issued.

Tudor said the 150m step-out hole at the recently-identified Goldstorm zone had also included 370.5m at 1.095g/t from 63.5m and 252m at 1.268g/t.

It also noted "a pleasant surprise" in the third and northernmost hole, GS19-42, intersecting a strong silver-bearing base metal system which returned 1.5m at 33.51g/t gold, 1,154 g/t silver, 2.89% copper, 5.96% lead and 1.89% zinc from 209.5m.

The project in the Golden Triangle borders Seabridge Gold's KSM property to the southwest and Pretium Resources' Brucejack project to the southeast.

Former Pretium geologist Ken Konkin is said to have come out of retirement to become Tudor's exploration manager at Treaty Creek in January.

Tudor is led by businessman Walter Storm, who provided start-up financing for Osisko Mining in 2004.

Canadian mining investment identity Eric Sprott has an interest in all three companies.

He now has a 12.6% stake, on a non-diluted basis, in Tudor after a further C$3 million (US$2.3 million) investment this month at 45c per unit.

Teuton, the original Treaty Creek owner, said last week Sprott acquired 2.5 million of its 3.5 million units offered at 22.5c in a placement, which raised $787,500 (US$599,000).

Teuton said Sprott had also signed a voting agreement, to vote with management in the event of a takeover bid.

American Resources said on Monday Sprott had agreed to both a $1 million (US$0.76 million) financing at 5c per unit and a similar voting agreement.

All three companies' shares touched a 52-week high yesterday intraday.

Tudor closed up 8.3% to 65c, American Creek rose 33.3% to close at 8c and Teuton closed up 2.86% to 36c.

At those prices, the trio are valued at $82.2 million (US$62.6 million), $22.4 million (US$17 million) and $15.4 million (US$11.7 million) respectively.