American Eagle drills long 0.6% copper at NAK in BC

Canadian explorer American Eagle Gold (TSX-V: AE; US-OTC: AMEGF) says new drilling at its polymetallic NAK project in British Columbia has enlarged a discovery zone that could serve as the basis for a future mine.

Hole NAK25-78 in NAK’s Southern zone cut 802 metres grading 0.31% copper, 0.27 gram gold per tonne and 1.2 grams silver from 54 metres downhole, American Eagle said this week. This included 118 metres of 0.6% copper, 0.19 gram gold per tonne gold and 2.5 grams silver from 738 metres depth.

The exploration update sheds further light on a 31,500-metre drilling program that American Eagle recently completed on the property with a view to expanding and improving the mineral footprint. Other assays are being received. 

“We’re drilling to prove that that the South zone is big enough on its own,” CEO Anthony Moreau told The Northern Miner Thursday. “It’s high-grade, close to surface and in an amazing jurisdiction with good topology and geography. Our focus is on making this thing huge. Every single hole we have drilled has come with long intercepts above cutoff grade.”

The results connect multiple high-grade discoveries made earlier in the 2025 drill season, increasing the size of the South zone, American Eagle says. They also demonstrate a significant expansion of the system’s highest-grade part. 

Expansion potential

The zone is now believed to cover 700 metres in the east-west direction, 500 metres in the north-south direction and over 800 metres in depth, with the system’s bounds still unknown. Strong potential for expansion remains, the company said.

Based in Toronto, American Eagle counts two major global miners as key shareholders. Australia’s South32 (ASX: S32) owns 19.9% of the company, while Canada’s Teck Resources (TSX: TECK.A, TECK.B) has a 12.9% stake.

American Eagle is putting together an “aggressive” follow-up drill program and advance the South zone toward an initial resource assessment. Another 30,000 metres will probably be drilled this year, Moreau said.

The South zone could represent an initial area of development, American Eagle says. It is characterized by strong grades, shallow mineralization and minimal overburden, which makes it a logical focus for continued step-out and infill drilling.

American Eagle shares fell 2.4% to 81¢ Thursday afternoon in Toronto, cutting the company’s market value to about $140 million. The stock has traded between 39.5¢ and 86¢ in the past year.

“We have a lot more drilling to do but we think we think that we will find other high-grade areas like we found in the South zone,” Moreau said. “We know this is a mine but the market is having a tougher time grasping that. There is a bit of a disconnect.”