American Copper Corporation
TSX VENTURE : AJ

American Copper Corporation

January 14, 2008 13:04 ET

American Copper Options Copper Land Package

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2008) - American Copper Corporation (the "Company") (TSX VENTURE:AJ) is pleased to announce that it has optioned a land package comprised of five separate copper properties located in Arizona, New Mexico and Nevada (collectively, the "Properties"). The Properties are comprised of 630 claims covering a total of 19.6 square miles in Santa Cruz, Gila and Yavapai Counties (Arizona), Grant County, New Mexico, and Humboldt County, Nevada.

Under its Option Agreement with MinQuest Inc. of Reno, Nevada, the Company must reimburse MinQuest its acquisition costs which include filing fees, holding fees and staking fees made by MinQuest in relation to the Properties. MinQuest will retain a 3% net smelter royalty. The Company can earn a 100% interest in the Properties or any portion thereof (subject to the 3% NSR) by expending an aggregate amount of US$25,000,000 on one or any combination of claims forming the Properties, and issuing 3,650,000 shares, over a period of ten years. The Company has the right to purchase up to one half of the royalty in each of the five properties on the basis of $2 million per each 1% of the royalty.

The Properties lie within major mineralized trends as follows:

Copper Springs - 102 claims cover an area of about three square miles within the prolific Miami-Globe mining district in Arizona. This area is the site of significant past and present production as well as intense exploration for new ore deposits of copper and molybdenum. Historic drilling at Copper Springs has discovered near surface indications of copper mineralization.

Patagonia - 350 claims cover an area of over 11 square miles within the Patagonia mining district of Santa Cruz County, Arizona. Several historic resources (not NI 43-101 compliant) of copper, molybdenum, zinc and silver are reported to occur within the property. The USGS reports that the mineralization is hosted in porphyry intrusive, breccia pipes, and in skarn within the company's claim block.

Cobre - 45 claims cover an area of approximately 1.4 square miles within the Tyrone mining district of Grant County, New Mexico. Phelps Dodge (now Freeport-McMoRan) continues to produce from the nearby Tyrone copper mine. The mineralization is hosted in intrusive rocks similar to the Tyrone mine. Although no known resources are present within the Company's property boundary, surface indications of oxide copper are common.

CB Claim Group - 82 claims cover approximately 2.6 square miles within Yavapai County, Arizona. Historic work on this property indicates low grade copper-molybdenum-silver mineralization occurs within the boundary of the Company's claim group. A central core of higher grade mineralization has been recognized, but poorly defined to date.

Gregg Canyon - 51 claims cover approximately 1.6 square miles within the Adelaide mining district in Humboldt County, Nevada. Historic drilling on this project has defined molybdenum mineralization hosted within granite. Numerous areas of surface mineralization have been identified, but remain untested by drilling.

All statements or estimates of resources stated herein are historical in nature or based on historical data, predate and are noncompliant with National Instrument 43-101. The Company is not treating the historical estimates as current mineral resources or reserves. The Company has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. However, the Company believes that these historical estimates provide a conceptual indication of the potential of the occurrences and are relevant to ongoing exploration.

Richard Kern and Herb Duerr, both directors of the Company, each hold a 50% interest in MinQuest, and accordingly the transaction is deemed to be a related party transaction under TSX Venture Exchange policies. Mr. Kern's and Mr. Duerr's shareholdings in the Company will change over ten years as a result of this transaction. The option agreement was reviewed and approved by the board of directors, with both Mr. Kern and Mr. Duerr abstaining from voting on the resolution. The Company did not obtain a formal valuation of the Properties, as the same are of indeterminate value, and will be assessed over the life of the option to determine if in fact the option price is warranted. The Company is relying on available exemptions under Exchange policies from the requirements to obtain a formal valuation and to obtain minority shareholder to the option. The option agreement is subject to the approval of the TSX Venture Exchange. The board of directors is of the view that the terms of the option agreement are favorable to the Company, present limited risk to the Company, and it is reasonable to proceed with the option agreement upon receipt of TSX Venture Exchange approval.

"We are very fortunate to have such an attractive land package made available to the Company and for American Copper to be in a position to option these properties in predominant mining districts," said President Robert Eadie.

Richard Kern (P.Geo), a director of American Copper, is the Company's qualified person on the project as required under NI 43-101 and has prepared the technical information contained in this press release.

American Copper is dedicated to the principles of environmentally sound mining practices and believes that environmental stewardship and mining can co-exist. For details on the Company and its properties, see the prospectus of the Company dated July 19, 2007, available on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD

Robert Eadie, President & Chief Executive Officer

The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • American Copper Corporation
    Robert Eadie
    President & Chief Executive Officer
    (604) 602-4935 or Toll Free: 1-866-602-4935
    (604) 602-4936 (FAX)
    Website: www.americancopper.ca