As illustrated in the location map below, the NAK project is located in the Babine Copper-Gold Porphyry District which contains the historical Bell and Granisle mines and the Morrison deposit. The property offers American Eagle Gold a compelling risk-reward proposition to drill test a coincidental ZTEM and magnetic anomaly which underlies the North and South copper zones depicted in the figure below. The drilling targets were defined by the analysis and reinterpretation of the historical geochemical, geophysical and drilling data, all of which indicate excellent potential exists below the current limits of the known copper-gold mineralization.

The Company believes that historical drilling, previously restricted to shallow depths, stopped short of the most compelling geophysical anomalies at depth, and thus represents significant potential for a new discovery. Geophysical modelling coupled with geochemical information from historical drilling has outlined a classic porphyry target model, with concentric and vertically zoned alteration halos corroborated by 3D inversion models of IP chargability, resistivity, and magnetic susceptibility.  Drilling in 2022 will target a high-grade mineralized porphyry stock at depth, using the geophysical alteration model as a vectoring tool.  For detailed information on the NAK property geological and geophysical interpretation, refer to the Company's Projects page here.

The NAK property has excellent logistical advantages and can be accessed via well-maintained forest production roads from Topley Landing. The NAK copper-gold porphyry deposit occurs in the Stikine Island Arc Terrane, which hosts many copper porphyry deposits in British Columbia. In addition, NAK is associated with Babine Intrusive Suite, which is Eocene age and locally hosts the Bell, Granisle, Morrison, Hearne Hill and Dorothy/Duke copper-gold deposits.

Complete - Geophysics and Field Exploration

Complete - Generate GIS database

Complete - Block Model

Complete - Drill Targets Defined

Complete - Community Consultation

Complete - Permitting

August - October 2022 -  NAK Drill Program

Exploration on the NAK dates back to the mid-1960s, and more than $9 million has been spent.

Historical Exploration

1964-1971: Noranda Exploration completed soil and geophysical surveying and 28 BQ holes for 1837m.

1973: Ducanex Resources conducted geophysical and geochemical surveying and 480m in 8 holes.

1993-1997: Hera Resources carried out IP and magnetic surveying and drilled 71 BQ holes for 13,311m. No core retained.

2008: Copper Ridge completed soil, IP and magnetic surveying and 1,265m in 5 NQ holes. Core retained and stored in Smithers.

2010-2014: Copper Ridge and Redtail Metals completed a helicopter ZTEM and magnetic survey comprising 1,083 line-km and ground IP and magnetics.

2016-2019: Generation Mining re-logging B08-04 holes, preliminary metallurgy and several generations of soil sampling 

2021: NAK Mining digitized, analyzed, reinterpreted and modelled all historical data for the first time on this property. Independent geophysical and geochemical analysis was completed for historical data. The company recently applied for a five-year, multi-hole drill permit.

105  diamond holes were completed for 18,475m, averaging 175m in length and to an average vertical depth of 150m. However, only four holes were drilled below 300m vertically and failed to test the top of the coincident magnetic and ZTEM anomaly, which starts at a depth of 500-600m.

The property is underlain by a northwest-trending sequence of Jurassic-age rhyodacite, andesite, basalt and subordinate pyroclastic equivalents with basin-controlled conglomerates, siltstone and argillaceous sediments.

The older lithological units are intruded by an Eocene-age diorite stock, which is cut by a younger series of north-trending biotite-feldspar porphyry rhyodacitic intrusives.

The central stock is approximately 1.0 x 1.2 km is dominated by diorite but also includes a wide variety of subordinate intrusive rock types, including quartz-diorite, monzodiorite with minor granodiorite and quartz-monzonite.

Intrusive textures range from fine to coarse-grained equigranular, porphyritic to crowded porphyritic.  The copper-gold porphyry mineralization is commonly hosted by biotite-feldspar porphyry and rhyodacitic dykes but also occurs along the margins of the dykes.

Inter-mineral and post-mineral dykes include polymictic pebble dykes with mineralized intrusive clasts.

Due to a shortage of outcrop, the alteration pattern was established from core logging and petrographic studies. The pattern shows classic concentric zoning with an early stage high-temperature potassic core grading outward into phyllic and propylitic shells.  Late argillic alteration has destroyed or overprinted the higher levels of the hypogene alteration shells to a maximum depth of ~200m.

Extensional NW and NE trending faults may have caused the lateral and vertical displacement of the copper mineralization

A considerable amount of geophysical surveying has been completed over the NAK property. The surveys included airborne EM and VLF undertaken by Noranda in the late 60s followed up with ground magnetics, IP and VLF which were undertaken over localized grids in the central part of the NAK Intrusive Complex. In 2008, a ground IP survey (lines in yellow on the RTP map) was conducted over the central and southern portions of the property. In 2010, a 502 line km helicopter ZTEM and magnetic survey was completed over 70% of the property which generated high quality data. In 2014, a second close-spaced helicopter magnetic survey was completed over the entire property and extended further to the southeast covering the Dorothy/Duke copper porphyry prospect now owned by Amarc Resources. The survey totaled 581 line km of which ~300 line km covered the NAK property.

In order to facilitate a direct comparison with the geology, inversion modelling was completed for the ZTEM and magnetic data. The reliable depth penetration for the ZTEM survey data was estimated at 1000 to 1200m and 2500-3000m for the magnetic data. The 2D ZTEM inversion clearly defines a north-north-west trending elliptical shaped resistivity high measuring 1100 x 700m and centered on the North and South copper zones. The 2DI resistivity high is also coincident with an elliptical-shaped ZTEM In-Phase 30Hz low which reflects the location of the silicic core of the younger mineralized porphyry stock. The 3D magnetic inversion delineates a small, high intensity anomaly centered on the South copper zone and coincident with a strong ZTEM resistivity high and In-Phase low.

The older diorite stock and overlying volcanics are characterized by a moderate to strong IP resistivity low flanked by a zone of high chargeability which is best developed on the eastern margin of the older intrusive complex and related to pyritic phyllic alteration. Geophysical modeling indicates the the South Copper Zone offers the best potential for higher copper grades below a depth of ~500m. Deeper drilling will focus on the coincident ZTEM resistivity and magnetic high located in the South Copper zone in the vicinity of drill holes B-5, 95-15 and 95-55. These holes intersected strong magnetite alteration with abundant bornite with a high Au:Cu ratio. A number of world class, copper-gold deposits including Grasberg, Batu Hijau, Red Chris, Southwest Oyu, Maricunga, Cascabel, and Cadia exhibit similar geological characteristics as NAK in that they are magnetite rich and have a high gold to copper ratio.

IP shows a crude horse-shoe chargeability high (pink) developed outboard from the potassic alteration zone which is indicated by coincident magnetic and ZTEM resistivity highs. In the classic copper porphyry model, the chargeability high represents the phyllic alteration zone which contains significant pyrite but generally does not constitute a high priority exploration target. The deeper resistivity high is developed on the western margin of the older diorite stock. The anomaly is elongated in a northwest direction and measures 2.0 x 1.5 km with the highest values associated with the North and South Copper zones. A second discreet resistivity high is located to the southeast and is coincident with a group of copper and gold soil anomalies, a 3DI magnetic and ZTEM resistivity high and is designated as the Embayment anomaly. Based on 3DI, the top of the magnetic high at the Embayment anomaly is estimated at a depth of 300-500m. This anomaly represents a high priority drill target and again is developed along the southern margin of the older diorite pluton.

Geophysical interpretation was derived from ground IP and airborne magnetic and ZTEM survey data. The airborne data was processed using 3D/2D inversion to provide a better rendition of the deeper geophysical targets. The priority drill sites were ranked based on the geophysical and geochemical anomaly attributes. Highest ranked targets are located in the North and South copper zones which were delineated by historical drilling. SCZ is associated with well-defined coincident ZTEM and magnetic highs.

Detailed analysis and processing of multi-element ICP soil data generated a total of 8 geochemical target areas. The priority drill sites were ranked based on the geochemical anomaly attributes only. The highest ranked targets are again located in the NCZ and SCZ defined by historical drilling.

The Embayment anomaly is very prospective owing to the fact that no drilling has been undertaken and the soil anomalies are located along the westen flank of a coincident moderate magnetic and ZTEM high. Close spaced soil sampling is recommended owing to wide 500m line spacing used in the past.