American Creek Resources Ltd. (ACKRF)

[douginil]

Treaty Creek Exceeds Mr. Lassonde's Definition of Great Shareholder Value

This Wednesday, Treaty Creek was featured in an article on resource world that contained quotes from Pierre Lassonde. His commentary directly relates to Treaty Creek and our shareholders. We wanted to provide the interview (as well as a few others), so our following could get his expert opinion on the future value of gold and gold deposits. The interview aired on Kitco Monday Mar. 8th.

You know, the fundamental thing about junior mining is at the end of the day 90% of the value in our business is created by the drill bit. So, you’ve got to look at your finding costs per ounce, and if these companies are not able to find gold for like $20, $30, $40 an ounce (they) should not be in this business. What I look at as an investor, the bottom line is what’s your cost of finding an ounce of gold? That’s your common denominator. That’s where you find the value for shareholders.”

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Another quote from Pierre on Sept. 15, 2020:
“Obviously, we’re going to see M&A in the space, and I think the way we're going to see it is going to sort of be like three tiers. That is, if you have a project that has 1 to 3-million-ounce reserve capability, you’ll get offers at par. If you have 3 to 5-million-ounce of reserve capability, you’ll get a premium. Any project that is from 5 to 10 to 15-million-ounces, there will be bidding wars for those.”

Pierre Lassonde on $20,000 gold price and ‘most unbelievable margins’ ever 20 years ago I believed that, yes - we would find it (50M+ Oz gold deposit) but so far we haven’t…in terms of the pure gold (deposits) we haven’t seen any of those… even the 15-30 million ounces ( gold deposits), we seen precious few in the last 20 years”

Pierre Lassonde's Bold Call: Gold/Dow Ratio to Collapse 1:1, New Jan. Highs for Gold Im encouraged, I think over the next 2-3 years we’ll see some interesting deposits. All this bodes well for Treaty Creek and the JV partners. The Treaty Creek Maiden Resource Calculation was released on Tuesday, March 9th.

M&I 19.4 Million Ounces Gold Eq
Inf. 9.3 Million Ounces Gold Eq

So if Mr. Lassonde is correct (which he normally is), the Goldstorm deposit is a very rare occurrence and Treaty Creek just entered "Bidding War" territory.

As Mr. Lassonde points out, the reserves of the big producers are depleting, and there is going to be a lot of pressure on them to acquire these large "generational" deposits. We have seen M&A in the sector starting to pick up, which could mark a turnaround point for the gold price. It makes sense for the producers to pick up projects when they think the gold price is as low as it will be for the foreseeable future. The acquisition of GT Gold by Newmont announced last week is a good example. Attention is turning to the Golden Triangle, which checks all the boxes, from infrastructure to geopolitical implications.

Mr. Lassonde also points out that the most important consideration for increasing shareholder value is reducing the cost per ounce of gold discovered; suggesting that $20 - $40/ounce is the range for most good companies. At first look it appears that Tudor's discovery rate is under $1.50/ounce! American Creek shareholders enjoy a $0/ounce rate (due to possessing a fully carried 20% interest in Treaty Creek until a production notice is given) and are fortunate to be partnered with Tudor discovering gold at a mere fraction of industry standards.

Remember, the story on Treaty Creek is just getting started. Tudor Gold has announced plans to not only expand the Gold Storm, but to also drill the Perfect Storm in the upcoming drill program. The Perfect Storm hosts the same geological features as the Goldstorm with an even larger geophysical anomaly and sits exactly where it "should be" within the "String of Pearls" (large deposits within the Sulphurets Hydrothermal System). Permits last summer only allowed Tudor to test the outer edge of what the geophysics outlined and even with that limitation, they successfully hit gold mineralization as announced in the Sept. 9, 2020 press release.

Eric Sprott said we had the potential to get 30, 40, or 50 million ounces at the Goldstorm. Drilling will prove if the Perfect Storm holds similar potential. As development on Treaty Creek continues Mr. Lassonde may eventually see the day that a 50 million ounce project is found. Until then, Treaty Creek is providing one of the best shareholder values in the gold space and is now entering the "bidding war" territory. American Creek is undervalued when considering the current value given to Treaty Creek making it a compelling company to invest in.

The future looks very bright!