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Co. Finds Massive Anomaly at Nevada Gold Project

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This gold explorer says geophysical surveys and geological mapping found a 2.6-square-kilometer multi-element soil anomaly at its Cuprite project in Nevada's Walker Lane gold trend. See why the company thinks the deposit could be similar to one nearby.

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) announced that geophysical surveys and geological mapping had found a 2.6-square-kilometer multi-element soil anomaly at its 100%-owned Cuprite project in Nevada's Walker Lane gold trend.

The anomaly was "coincident with resistivity and chargeability highs and projected ground preparation by multiple structures," Chief Executive Officer Mike Allen said. "The Company is evaluating additional geophysical and geological work while targeting a drilling program for late 2023 or early 2024."

The company said it had completed 13.5-line kilometers of Induced Polarization (IP) geophysical surveys and collected 1,041 soil samples on 17 lines spaced about 200 meters apart.

Online sample spacing was about 30 meters, and samples were collected with a hand auger at a depth of about 30 centimeters.

"The data (indicate) a possible large-scale hydrothermal system in a similar structural environment to the nearby 4.22-million-ounce (Moz) gold Silicon Deposit operated by" AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE), StrikePoint noted in a release.  

The Catalyst: Similarities to Silicon Project Are 'Striking'

Mapping at Cuprite has identified multiple east-west structures projecting into the mercury anomaly identified by soil sampling.

"This highlights the potential of significant ground preparation for mineralizing fluids where the east-west structures intersect the hypothesized Stonewall Mountain Caldera Margin."

According to Orogen, Cuprite is one of the largest alteration cells in the Walker Lane trend, and prospective feeder structures are untested by historical drilling.

StrikePoint believes Cuprite is an analog to Silicon and plans to follow up the surface work with drilling late this year or early next year.

"The similarities between Silicon and Cuprite are striking," Allen said.

Allen said he said he became interested when AngloGold revealed the Silicon discovery, and Cuprite came on the market. StrikePoint initially acquired the project earlier this year from Orogen Royalties Inc. (OGN:TSX.V)

According to Orogen, Cuprite is one of the largest alteration cells in the Walker Lane trend, and prospective feeder structures are untested by historical drilling.

'A Large-Scale Target'

The survey completed by Zonge International identified a possible 6-kilometer structural corridor aligning with the Stonewall Mountain Caldera margin, the company said.

The project is in a known area of significant hydrothermal and acid-leach alteration, StrikePoint said. Work has identified sizable structural, geochemical, and geophysical anomalies similar to the Silicon Deposit.

According to a recent Gallup poll, about one-quarter of Americans think gold is the best asset to invest in long-term, its highest level in more than a decade.

"The soil geochemical anomalies, coincident with geophysical and mapped structures, indicate a large-scale target exists on the property," StrikePoint said in the release. "The Company is evaluating the additional geophysical and geological work to help refine the target prior to the Company's inaugural drill program."

The Silicon gold project is just 75 kilometers away from Cuprite. A new geological target of 6 to 8 Moz Au has also been identified by Anglogold at the nearby Merlin target.

StrikePoint filed a National Instrument 43-101 report for Cuprite in April. The project is underlain by Miocene and Oligocene tuff and is located on the western flank of the Stonewall Mountain Caldera. Several nearby gold deposits and mines are in similar locations within the calderas of the Walker Lane Trend, including the Goldfield District Deposit, now owned by Centerra Gold Inc. (CG:TSX; CADGF:OTCPK) A caldera is a large depression formed when a volcano erupts and collapses.

"The Cuprite property includes areas of intense, steam-heated, advanced-argillic alteration with potential for gold-silver mineralization at depth, and the author believes that the Cuprite project is an initial-stage project of merit," geologist Steven I. Weiss wrote in the NI 43-101 report.

Looking for 'Fireworks'

At the time of Cuprite's acquisition in January of this year, the company's share price was CA$0.07. Technical Analyst Clive said then that "we shouldn't expect any fireworks soon," but StrikePoint looked like a good value.

Those "fireworks" could arrive with Strikepoint’s drill program commencing. "It is down in a zone of strong support and oversold," Maund said.

The stock was at CA$0.04 on Tuesday afternoon.

In addition to Cuprite, the company also controls two advanced-stage exploration assets in British Columbia's Golden Triangle: the past-producing high-grade silver Porter-Idaho Project and the high-grade gold Willoughby Project. 

Why Gold?

Gold has long been considered a safe-haven asset, Forbes wrote in "Why Gold Is a Good Investment Right Now."

"Gold became a darling for investors in 2020 during the worst pandemic in generations, gaining as much as 40%," Forbes wrote. "Gold has returned 18% over the last three years, 54% over the last five years, and 41% over the last decade. That compares unfavorably to the S&P’s 41% three-year return, 51% five-year return, and 156% ten-year return but easily trumps the low- to mid-single-digit returns for other nonequity investments such as government bonds and high-yield savings accounts."

Streetwise Ownership Overview*

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB)

*Share Structure as of 2/2/2023

According to a recent Gallup poll, about one-quarter of Americans think gold is the best asset to invest in long-term, its highest level in more than a decade.

Ownership and Share Structure

Some of the industry's biggest players are shareholders in StrikePoint, including Eric Sprott, who owns about 14.5%. Institutions own about 46.7% of the company. Management and insiders own about 4.8%, and 33.9% is retail.

Some major institutional investors include Crescat Capital LLC, with 4.99% or 10.67 million shares, and U.S. Global Investors Inc., with 1.29% or 2.75 million shares.

Major insider shareholders include Board Executive Chairman and Director Shawn Khunkhun with 0.56% or 1.17 million shares, and Director Ian Harris with 0.29% or 0.61 million shares.

StrikePoint's market cap is CA$8.55 million, with 213.78 million shares outstanding, according to the company. It trades in a 52-week range of CA$0.12 and CA$0.04.

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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 Orogen Royalties Inc.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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