Western USA. Gold. Silver. Copper

  • CSE: USGD
  • OTC: USGDF
  • Frankfurt: 1QC

Forward-
Looking Statement

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All statements in this presentation, other than statements of historical fact, are “forward-looking information” with respect to American Pacific Mining Corp (APM) within the meaning of applicable securities laws including, without limitation economic estimates and statements related to estimated development costs. APM provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations in connection with the company’s project portfolio, as well as those risks and uncertainties identified and reported in APM public filings under the SEDAR profile at www.sedar.com. Although APM has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. APM disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

All historic production, drill or sample figures quoted herein are based on prior data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify results. The historical figures should not be relied upon and have not been verified by a Qualified Person.

Technical aspects of this presentation have been reviewed and approved by the Qualified Person, Eric Saderholm, P.Geo., hereby designated as a QP under National Instrument 43-101.

Investment Highlights

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Transformational
Transaction

  • USGD recently acquired the permitted Madison high-grade copper-gold project in Montana
  • Tier-One JV Partner, Rio Tinto—Rio earning in by spending US $30M
  • Ongoing drill campaign with results forthcoming

Nevada Projects
Portfolio with
Discovery Potential

  • Two exploration projects located in one of the world’s most prolific precious metals geological jurisdictions
  • Gooseberry Gold-Silver Mine–past-producing mine, dropped in ‘94 due to weak precious metals prices
  • Tuscarora Gold Project–high grade, low sulphidation epithermal vein system optioned from Novo Resources when Novo focused on success in Pilbara region of Australia–now under earn in JV agreement with drill program planned for 2020

Senior Management with Big Company Experience specifically in Western US

  • Includes ex-Newmont Exploration Manager for Western US, Eric Saderholm

Corporate Structure

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USGD
Exchange CSE/OTCQB
Common Shares 65,445,249
Stock Options 2,850,000
Warrants 33,781,914
Fully Diluted 102,077,163
Cash Position $2.5M
*~$6.1M in the money warrants
Monthly Burn Rate $150k

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USGD acquired the permitted Madison Copper Gold Mine from Madison Metals June 2020

Rio Tinto earning 70% interest with US$30M spend with USGD free carried

Past production of 2.7M lbs of copper with grades ranging from ~20% to over 35% copper and 7,570 ounces of gold

High grade intercepts from 2017 & 2019 drilling:

1.16 g/t Au over 74m (including 0.18% Cu and 17.71 g/t Au over 3.46m)

1.42 g/t Au, 2.41% Cu and 44.50 g/t Ag over 2.54m

2.60 g/t Au and 0.20% Cu over 9.22m

24.5 g/t Au over 30m; 41.7 g/t Au over 11m; 6.97% Cu over 61.63m, 1.89% Cu over 84.7m

Rio has commenced robust drill program with up to 40 holes—results expected throughout the remainder for 2020

Analogous to and just 48 km from the Butte mine, which churned out 21 billion lb. copper, 715 million oz. silver, 2.9 million oz. gold

Madison Location

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Historical
Drill Highlights

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Hole_ID Thickness (m) Au_g/t Cu%
UG17-05 30.18 24.497 0.39
UG17-06 10.97 41.65 0.38
UG17-06 including 4.60 82.87 Not significant
86-6 7.31 25.75 Not significant
C05-06 14.69 12.10 Not significant
C05-06 61.63 Not significant 6.97
C05-06 including 8.47 Not significant 40.03
C06-08 84.70 Not significant 1.89
C06-08 2.70 41.73 19.58

Terms of JV with
Rio Tinto/Kennecott

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USGD has free carried interest until Rio Tinto/Kennecott spends US$30 million over 11 years to earn 70% of the project

USD$5-million earn-in over five years that generates a 55% interest for Rio Tinto

USD
$5
Million

USD$5-million earn-in over five years that generates a 65% interest for Rio Tinto

USD
$15
Million

USD$5-million earn-in over five years that generates a 70% interest for Rio Tinto

USD
$30
Million

“We believe that ultimately owning 30% of a Rio Tinto size project would be a huge win for USGD shareholders and having a free carried interest frees up our capital to advance our other high potential Nevada gold assets.”

-CEO Warwick Smith

Madison Project
3D Model

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Past Production

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Madison Gold and Copper Shipments

From 2008 to 2012 the Madison Mine sold 2,681,400 pounds of copper with grades ranging from just under 20% Cu to over 35%; additionally, the Madison Mine produced 7,570 ounces of gold at an average grade of 16.1 g/t

  • * Hosted within Madison Project
  • ** Shipments- stockpiling oxide gold, massive sulphide gold and copper mineralization for subsequent mill shipment
  • ***Source: Madison Project report June 2016, Page 1

Rio Tinto Porphyry
Model

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2017 Drilling Encountered Latite Porphyry High level Porphyry System

Madison Core Carbonate
latite porphyry contact, note the chaotic folding and brecciation 2017 Drilling

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Oxidized Skarn and Jasperoid - 0.89% Cu, 7.14 GPT Au

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Jasperoid/Jasper Ore

Grades:

  • Hole 88-C9 (199’-213’, 14 ft)
  • Au= 0.53 opt
  • Ag= 0.16 opt
  • Cu= 0.23%

Process/Milling:

Golden Sunlight Mine/Mill

Native Cu/Chalcocite Ore

Grades:

  • Native Cu/Chalcocite Ore
  • Au= 0.020 opt
  • Ag= 0.20opt
  • Cu= 10.58%

Process/Milling:

Smelter

Massive Sulfide/Skarn Ore

Grades:

  • Hole CO6-8 (401’-418.7’,17.7 ft)
  • Au= 0.67 opt
  • Ag= 4.20 opt
  • Cu= 11.2%

Process/Milling:

Golden Sunlight Mine/Mill

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Tuscarora Gold Project

Tuscarora Overview

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  • High-grade, low sulphidation, epithermal vein system
  • Numerous veins run through the property, with 8 targets outlined from geophysical program
  • Easy access via main highways and dirt in very mining-friendly area
  • Elko Sun earning up to 80% of the asset by making cash payments to USGD, spending $4.5M in exploration expenditures and completing a Pre-Feasibility study advance to the resource stage
  • USGD optioned Tuscarora in late 2017 from NOVO Resources

Tuscarora Gold Project
Drill Highlights

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Tuscarora
Property

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Gooseberry Gold Silver Project

NEVADA-USA

About Gooseberry

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USGD recently acquired the historic Gooseberry Mine in Storey, Nevada, an underground high-grade past producer

Gooseberry was sporadically in production as a small scale underground silver/gold mine from early 1900’s to early 1990’s

The deposit type is volcanic hosted calcite – quartz vein (steeply dipping), mineralization is argentite, auriferous pyrite and electrum and some minor native gold

Previous operators include West Coast Oil and Gas, who produced approximately 200k tons up until 1983- following this, asamera operated a 350 tpd floatation mill to mid 1985 and then followed up with tailings processing

Image on Right: Historic Image of the Gooseberry Mine from Nevada Bureau of Mines and Geology; Apco Oil Corp, 1975, Document 37900032: “Shows All Levels Plus The Stock Pile, The Mill, and the Crushing Plant”

Gooseberry
Au/Ag project

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Select stope maps of the historic Gooseberry Mine show the underground grades during the mine productive period (APM believes these stopes were later mined by Asamera.

The stope maps hightlight the location of Certain significant assays as recorded by Asamera’s in house team and processed by an inhouse lab (Long section below with figures)

Gooseberry Geological Model

The Gooseberry model video file is a view of the geological model created using compiled historical channel samples from the Gooseberry mine. The effective date of the model is January 31, 2020. The geological model does not represent the final conclusions of the compilation. Viewers are cautioned to make interpretations solely on this interim information. The geological model represents underground channel samples that have been composited over the total channel length. The channels appear to have been mostly collected orthogonal to the underground drifts and of the working face during mining operations. A qualified person has not completed sufficient work to verify the present day site underground geology as it relates to the historical data. The uppermost level shown is L500 and the lower most level is the L1150. All units are in US feet and troy ounces per short ton. Gold equivalent (AuEq) is calculated based on 80 silver to 1 gold ratio. Due to incomplete lithological data, vein intervals are selected based on a 0.06 oz/t cut-off. However, the numeric model of AuEq incorporates all sample data and assumes total metal recovery. The data was compiled using an ESRI ArcMap and Microsoft Excel/Access. The geological model was then generated using Seequent Leapfrog Geo 3D. The qualified person supervising the completion of the data compilation and geological model is Van Phu Bui, P.Geo., a geologist with ARC Geoscience Group Inc., who is independent of American Pacific Mining Corp.

Gooseberry
Historic Long Section

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Refer to the Appendix for stope maps sections for A-A’, B-B’, C-C’

Drill hole pierce points displayed approximately on the map were found on the Asamera 1988 version of the long section. Likely these holes were drilled by Asamera Minerals and West Coast Oil and Gas, although records are poorly preserved. No details on QA/QC exists for this information. It is unknown at this time if areas of the mine were mined out after drilling took place. There is no assurance that the grades and intervals displayed on this map will be indicative of future results. No information on the assay lab has been found and these results have not been verified by a Qualified Person as defined by NI 43 101.

2020
Milestones

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Complete transformational acquisition of Madison Copper-Gold project

Complete oversubscribed non brokered private placement of $3M

Release results from 14 holes drilled by Rio Tinto in 2019

Announce Rio Tinto’s up to 40 hole drill program for 2020

Identify partner for Tuscarora

2020 Drill Results from Madison and Tuscarora

Identify Partner for Gooseberry

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Our team

CEO & Director

Warwick Smith

Warwick Smith, CEO & Director Mr. Smith is a venture capitalist specializing in corporate finance and development for publicly traded companies. He has a background in marketing and finance, and formerly served as co-founder and Chief Executive Officer of Western Pacific Resources Corp. (TSXV: WRP).

President & Director

Eric Saderholm

Eric Saderholm, President & Director Mr. Saderholm is a professional Senior Geologist and former Newmont Exploration Manager for the Western US. Mr Saderholm has worked on many large mines and projects including Bingham Canyon, Carlin, Midas, Gold Quarry, Twin Creeks, Lonetree, Mule Canyon, Black Pine, Genesis and Yanacocha. He has almost 4 decades of experience in the minerals industry.

Director

Norman Wareham

Norman Wareham, Director, CFO & Corporate Secretary Mr. Wareham has over 40 years of financial, accounting and international management experience. He has provided management consulting and accounting services to public companies in Canada and the United States.

Director

Joness Lang

Joness Lang, Director Mr. Lang is a business development and capital markets professional with 10+ years of experience in the natural resource sector. Mr. Lang has significant experience raising capital, negotiating and structuring project acquisitions, as well as joint-venture and strategic alliance partnerships. Mr. Lang is currently VP, Corporate Development with Maple Gold Mines Ltd.

Director

Ken Cunningham

Ken Cunningham, Director Mr. Cunningham brings over 44 years of experience in worldwide, diversified mineral exploration and mining geology, from geologist to executive management. Mr. Cunningham has proven skills in building successful exploration teams, acquiring key projects, negotiating joint ventures and strategic alliances, as well as building awareness in the investment and financial industry.