While most people might dream of relaxing on a California beach or enjoying Alaska’s scenic coasts, I found myself trekking into the Nevada deserts and icy plains of Alaska, all in pursuit of base and precious metals. Luckily, I wasn’t alone in this adventure—Warwick Smith, CEO of American Pacific Mining Corp, joined me to discuss the company’s progress and future plans.

Who is Warwick Smith and Why Should Investors Trust Him?

Warwick Smith has been in capital markets since 1999, working on a range of successful deals. One of the standout names early in his career was Fortuna Silver, which grew from a shell to a billion-dollar company. Smith took the reins at American Pacific Mining in 2018, and in 2021, the company was ranked the top-performing gold stock globally by the Wall Street Journal Mining Index. Despite the recent tough market, Smith’s track record in successfully navigating challenging terrains provides confidence to investors.

A defining factor in investor trust is insider ownership, a point I pressed Warwick on during our conversation. Smith, along with his family, owns about 4.5 million shares in the company and has participated in every financing round since 2018, except for one led by fellow shareholder Michael Gentile. Importantly, Smith has never sold a share, reinforcing his commitment to the company’s success.

What’s Behind American Pacific’s Stock Volatility?

American Pacific’s stock has been anything but stable since its listing in 2018, a topic that led us into a discussion on the causes of this volatility. From the summer of 2021 to early 2022, the stock experienced a nearly 10x surge before crashing back down to sub-16 cents. Warwick attributes this to market forces rather than company-specific issues. He points out that while the price of metals like gold, silver, and copper has remained high, this hasn’t yet translated into upward movement for junior miners like American Pacific. He believes the next uptick for junior miners will come from a risk-on market, something that has been sorely lacking in recent times.

What’s the Future of the Madison Copper-Gold Project?

The conversation naturally shifted to American Pacific’s crown jewel—the Madison copper-gold project located near Butte, Montana. Acquired in 2019, this past-producing mine has shown significant promise in recent exploration efforts. Drill results have revealed high-grade copper and gold zones, particularly within the scarn mineralization.

Rio Tinto had initially partnered on this project, but eventually stepped back, leaving American Pacific with 100 percent ownership. Smith expressed his enthusiasm for this development, as it allowed the company to move forward more aggressively, especially in areas like the scarn zones, which Rio had identified as large-scale targets. With a fully funded second phase of drilling set to begin in January 2025, American Pacific is poised to further explore the high-grade potential of this asset. The goal is to define a resource within the next 18 to 24 months, setting the stage for a potential feasibility study.

One particularly exciting aspect is the possibility of a porphyry system beneath the scarn. Historic drilling by the predecessor company hit the porphyry, though it was unmineralized. Given the geological similarities to Butte’s massive copper deposits, Warwick sees potential for a significant find.

What’s the Situation at the Palmer Project and Why Was There Ownership Dilution?

While Madison is the clear focus, American Pacific also operates the Palmer project in Alaska, a VMS copper-zinc project held in a 70-30 joint venture with Dowa Metals. The project has a PEA from 2019 showing strong economic potential, and Dowa has been investing heavily in exploration, with $17 million spent in 2024 alone.

However, American Pacific’s ownership has been diluted as a result of not contributing to recent exploration expenditures. Smith is candid about this decision, explaining that it was a calculated move to avoid diluting shareholders at the corporate level. Instead, the company opted to take dilution at the project level while allowing Dowa to continue advancing the project. Smith remains optimistic about Palmer’s long-term potential, noting the strong grades and the aggressive pace of exploration.

How Is American Pacific Handling Permitting, Financing, and Future Exploration?

Permitting hasn’t posed significant challenges for American Pacific, particularly at Madison. The company works closely with the relevant authorities, including the BLM and DEQ, and has had no trouble obtaining the necessary approvals for ongoing exploration work. Water access is secured both on-site and via a nearby river.

Regarding financing, American Pacific is fully funded for its next phase of drilling at Madison. Smith estimates that a further $6 million will be needed to complete all three phases of drilling, with the possibility of raising additional capital for Phase Three a year from now.

The company’s Nevada projects—Tusk, Aurora, Ziggurat, and Gooseberry—are lower priorities at the moment. Smith suggests that joint venturing or selling these assets could provide further financing, although nothing is imminent.

What’s the Status of the Lawsuit Involving Ziggurat?

One unresolved issue is a lawsuit concerning the Ziggurat property. A private company claims it is owed additional shares under the terms of the original acquisition, a claim that American Pacific disputes. Smith is confident that the lawsuit is baseless and is prepared to fight it in court, though he downplays the potential financial impact should the company lose.

How Does American Pacific Approach Marketing and Investor Relations?

In terms of marketing, American Pacific is ramping up its efforts. The company has engaged a new marketing firm and is launching a podcast series titled “The Speculators,” where Smith interviews figures from both inside and outside the mining world. Smith sees this as a way to reach new investors unfamiliar with junior mining, an audience that he believes has become more diverse with the rise of online investing.

With several press releases scheduled between now and Christmas, including updates on both Madison and Palmer, Smith is keen to keep investors engaged and informed.

American Pacific Mining CEO Interview With Warwick Smith

This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked above.

Please note that this guest has paid for the creation of this content. The Resource Talks interview rules are simple.
The companies, albeit paying or non-paying, get no questions upfront, no questions off the table, and no editing rights.

The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.