Gold Jr. Encounters Gold in 4 of 5 Maiden Drilling Holes

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) has announced the results of its maiden drilling program at its Cuprite gold project in Nevada's historic Walker Lane Trend.

The company completed five holes totaling about 3,100 meters of reverse circulation drilling, intercepting 12.19 meters of 0.46 grams per tonne gold (g/t Au) and 10.10 g/t silver (Ag), including 6.1 meters of 0.74 g/t Au and 14.75 g/t Ag, it said in a news release.

Gold was encountered in four of five holes, the company said.

StrikePoint President and Chief Executive Officer Michael G. Allen noted that the results "confirm the potential of this epithermal system to host higher-grade mineralization."

"Gold and silver assay results from this first drill program are encouraging," Allen said. "Reportable gold-silver mineralization in four of the five holes over a distance of approximately 1,600 meters is coincident with the extensive surface mercury anomaly and the geophysical work the company has completed."

Allen said the next steps for the company will be to use the reverse-circulation chips to map the clay alteration in 3D, refining targets for "a potential next phase of drilling targeting higher-grade mineralization perhaps associated with feeder structures on the property."

Technical Analyst Clive Maund in March noted that Cuprite is "on virgin ground as it was formerly unavailable; meaning it has never been drilled, and the property is surrounded" by impressive mines and deposits, including AngloGold Ashanti Ltd.'s (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) Silicon deposit and the historic Comstock Lode, which produced 8.3 million ounces (Moz).

"The most exciting of the company's projects is, of course, the Cuprite Gold Project on the Walker Trend in Nevada, which is the biggest catalyst for appreciation of the stock, especially as a drilling program is currently underway," Maund wrote. "The chances of StrikePoint finding something very worthwhile this year at the Cuprite Gold project are considered to be high."

The Catalyst: Mineralization Similar to Successful Neighbors

StrikePoint noted that it did see indications of similar mineralization to AngloGold's on Cuprite, including a combination of oxide and sulfide gold, likely controlled by structures.

"Based on associated elements, mineralization appears to be caused by a low-sulfidation, epithermal system, similar (to) AngloGold's nearby, newly discovered Silicon and Merlin deposits," the company noted. "In the Walker Lane of Nevada, low sulfidation systems (created) several mines, most notably the multi-million Au oz Round Mountain Mine operated by Kinross."

Technical Analyst Clive Maund wrote, "The chances of StrikePoint finding something very worthwhile this year at the Cuprite Gold project are considered to be high."

Further highlights from the drilling include hole SKP24-003, which intersected 4.57 meters of 0.17 g/t Au and 1.97 g/t Ag, including 4.57 meters of 0.14 g/t Au and 0.93 g/t Ag; and SKP24-005, which intersected 1.52 meters of 0.11 g/t Au and 1.10 g/t Ag, including 9.14 meters of 0.19 g/t Au and 5.95 g/t Ag.

Strikepoint said the lengths reported are sample lengths, as it is too early to estimate the true thickness of mineralization.

Maund said that StrikePoint's stock recently broke out of the Double Bottom base pattern he predicted in an original report.

"Upon breaking out, the price ran up to CA$0.07 before a normal post-breakout reaction back to support at the breakout point set in as gold itself consolidated its major breakout," Maund wrote. "Meanwhile, the moving averages are swinging into bullish alignment with the 50-day crossing the 200-day, signifying the birth of a new bull market. So this is an excellent buy spot as a new second upleg should develop from here."

Aiming to Build Precious Metals Resources

Based in Vancouver, StrikePoint is a gold explorer with three projects aiming to build precious metals resources. Cuprite is its flagship project and consists of 574 unpatented claims covering 44 square kilometers in an under-explored mining trend that was home to the Comstock Lode, Anaconda, and Candelaria mines of yesteryear in Nevada.

This Tier 1 jurisdiction was the U.S.'s top gold-producing state last year, according to the U.S. Geological Survey (USGS).

The company's other two projects, both in the advanced exploration stage, are in British Columbia’s Golden Triangle. One, the gold-silver Porter-Idaho project, sited at the head of the Portland Canal, boasts two past-producing mines, Silverado and Prosperity-Porter Idaho. Between these two former mines is an unexplored, undrilled, 2,000-meter area.

An existing resource, calculated from Porter's Prosperity and D veins in 2012, includes 394,700 tons of 868 g/t Ag in the Indicated category and 88,900 tons of 595 g/t Ag in the Inferred category.

StrikePoint's other Canadian project, Willoughby, encompasses three mineral claims over 995 hectares. Significant historical drilling was done there and showed the presence of excellent gold and silver grades. One intercept, for instance, from the North zone, hole U96-02, returned 120.3 g/t Au and 2,434.84 g/t Ag over 3.5 meters. The most recent exploration work done at Willoughby was a 1,715-meter drill campaign in 2020.

Gold Bull Market on Horizon?

The price of gold hit a new all-time high of US$2,449.89 per ounce on May 20 but has since corrected. It was US$2,323.70 per ounce on Tuesday,

Some are predicting a prolonged and substantial gold bull market. Adam Rozencwajg, managing partner at Goehring & Rozencwajg, predicted that prices could go as high as US$5,000 to US$7,000 an ounce before it's all over.

According to Investing.com, "Gold prices fell slightly in Asian trade on Tuesday but were sitting on some gains from the prior session as signs of a cooling U.S. economy ramped up expectations of rate cuts and drove the dollar to two-month lows. But the yellow metal still remained well below record highs hit in May, with upcoming labor market data, due later in the week, set to provide more cues on the path of U.S. interest rates."

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and shares structure, where management and insiders own approximately 1.49% of the company.

According to Reuters, Executive Chairman Shawn Khunkhun owns 0.44% of the company, President and CEO Michael G. Allen owns 0.72%, Director Ian Richard Harris owns 0.11%, and Director Adrian Wallace Fleming owns 0.03%.

Reuters reports that institutional investors own approximately 9.57% of the company, as 2176423 Ontario, Ltd. owns 11.31% of the company, U.S. Global Investors Inc. owns 1.04%, and Sprott Asset Management LP owns 0.95%.

According to Reuters, there are 263.89 million shares outstanding with 230.12 million free float traded shares, while the company has a market cap of CA$10.56 million and trades in a 52-week range of CA$0.035 and CA$0.09.

Important Disclosures:

1. StrikePoint Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of StrikePoint Gold Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Contributing Author Disclosures:

1. For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. 
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.