"This is a significant first step in unravelling the mystery of the potential source of the large quantity of Wild Horse river placer gold collected downstream," CEO Darren Blaney said.

The company said early efforts by prospectors to locate the source of the Wild Horse gold led them up Boulder Creek to what is now the Gold Hill property, with lode gold found in the late 1800s, but the property had never been drill tested.

"To have intersected gold in every hole, especially since we had no prior drill holes on the property to guide us, indicates the potential scope and scale of the property's potential going forward," engineer Frank O'Grady said.

American Creek reported intercepts including 0.2m at 66.4g/t gold, and face samples along 6.7m of a small tunnel averaging 74.6g/t gold, 67.5g/t silver and 5.51% lead.

The company had a working capital deficiency of about C$450,000 (US$337,000) at the end of September.

It then closed a $300,000 (US$225,000) placement in November at 5c per unit and raised a further $100,000 (US$75,000) at the same price in January.

It announced another $100,000 raising in February and said on Friday "due to increased investor interest" it would increase the placement up to 2.5 million units at 5c to raise $125,000 (US$94,000).

The company has options or interests in a number of other exploration projects in British Columbia, including a 20% free-carried interest in Tudor Gold's Treaty Creek joint venture.
 
Its shares touched a 52-week high last week of 5c. They closed down half-a-cent on Friday to 3.5c, to capitalise it at $9.7 million.