In its first technical report, StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) established a drill-defined, bulk-tonnage exploration target at its Hercules gold project in Nevada's Walker Lane, it announced in a news release.
"This initial technical report is a significant step in providing valuable information on the Hercules gold project and as to the opportunity and potential size and scope of this recently acquired asset," President and Chief Executive Officer (CEO) Michael G. Allen said in the release.
The target, as described in the NI 43-101 compliant report, hosts between 819,000 ounces and 1,018,000 ounces (1.018 Moz) of gold within 40,000,000−65,600 000 tons of mineralized material with estimated grades between 0.48 and 0.63 grams per ton (0.48 and 0.63 g/t).
To quantify the target, StrikePoint used data, including historical and current drill results, from the Sirens, Hercules, Cliffs, Loaves, Lucky Rusty, Rattlesnakes and NorthEast showings at Hercules. Data were available for 306 historical drill holes, 31,776 meters (31,776m) in all, and 121 surface trenches. The numbers of available sample intervals were 18,409 from drilling and 475 from trenching. A total of 5,620 sample intervals was used.
For visual representation of the exploration target, first a grade shell model was created using the current geological understanding of the mineralization present within its boundaries. Next, an artificial intelligence-generated model was done, incorporating grade tonnage curves created by the grade shell model, drill hole gold assays and the results of kriging, a technique that estimates values at unmeasured locations. StrikePoint will use both models to guide future drilling in the areas of known mineralization within the target.
Michael Dufresne, president and CEO of APEX Geoscience Ltd., is completing the technical report.
Hercules contains more than 45 untested geophysical and geochemical targets, some of which include visible gold at surface, the release noted. Also, areas of mineralization remain open for expansion and possibly resource conversion.
"Previous drilling has only scratched the surface of this project's potential," Allen said. "We believe that the Hercules gold project has the potential to be Nevada's next multimillion-ounce gold resource.
Exploring for PMs in Top Jurisdictions
Headquartered in Vancouver, British Columbia, StrikePoint Gold Inc. is exploring for precious metals and building resources in premier jurisdictions in the western United States and Canada.
One such locale is Nevada's Walker Lane gold trend, where the company has amassed a land package of 145 square kilometers (sq km) and owns two projects, Hercules and Cuprite.
The Walker Lane, as described in a Convergent Mining article, hosts some of the largest volcanic-hosted deposits in the West but has not seen much modern production. The deposits, which often contain silver and base metals too, are of a type that allows for relatively easy gold extraction.
"The Walker Lane has so much more to give," the article's author purported. "With a massive land area, known significant deposits and the emergence of new exploration models, the Walker Lane may very well take the top spot in gold production from the Carlin Trend sometime in the not-so-distant future."
The Tier 1 gold projects in the Walker Lane include Kinross Gold Corp.'s (K:TSX; KGC:NYSE) Round Mountain, about 130 kilometers (130 km) north of StrikePoint's Cuprite and produced 15 Moz of gold, noted the Convergent article, and AngloGold Ashanti Ltd.'s (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) Silicon Gold and Merlin discoveries, about 75 km southeast of Cuprite.
Spanning 100 sq km, Hercules features a low-sulphidation epithermal gold system, shown through historical drilling directed by CEO Allen, shares geological similarities with the nearby Comstock Lode and boasts multiple drill-ready targets. StrikePoint has exploration permits for Hercules in hand.
StrikePoint's other asset in the Walker Lane is Cuprite, which covers 44 sq km and encompasses 574 unpatented claims.
"Cuprite was off limits for exploitation up until relatively recently, and so by Walker Lane standards, it is relatively 'virgin' territory with big discovery potential," Technical Analyst Clive Maund wrote in a recent report.
Last year, StrikePoint completed a five-hole maiden drill program at Cuprite, which showed mineralization in four of the holes.
The Canadian explorer's other two assets, Porter and Willoughby, "also have significant discovery potential," Maund wrote. Both are in British Columbia's Golden Triangle, another mineral-rich region.
Porter is a past-producing, high-grade silver project. There, between the past producing Silverado and Porter-Prosperity mines, is a 2,350m unexplored area, according to StrikePoint's 2025 Corporate Presentation. Because the veins at both sites are similarly oriented, it is thought the system may be continuous under the peak of Mt. Rainey.
A resource estimate exists for Porter, based on its Prosperity and D veins. The Indicated resource is 394,700 tons of 868 g/t silver containing 11 Moz silver. The Inferred resource stands at 88,900 tons of 595 g/t silver containing 1.7 Moz silver.
Willoughby is a high-grade gold project, at which historical exploration work included 119 diamond drill holes totaling 12,302m.
StrikePoint's management team has extensive geological and corporate knowledge. CEO Allen has deep experience in Nevada, having identified and advanced the Sterling project, recently acquired for US$150 million (US$150M) by AngloGold Ashanti, and having grown and taken the Northern Empire project to takeout by Coeur Mining Inc. (CDE:NYSE).
Shawn Khunkhun, StrikePoint's executive chairman and a director, is involved in the company's marketing, financing and corporate development. Throughout his career, he facilitated US$1 billion in capital raises, carried out several successful mergers and acquisitions, and developed a solid track record in delivering shareholder value. He is the CEO and a director of Dolly Varden Silver Corp. (DV:TSX.V; DOLLF:OTCQX) and is on Goldshore Resources Inc.'s (GSHR:TSX.V; GSHRF:OTCQB) board.
Adrian Fleming, a StrikePoint director, brings to the table 40 years of international experience in exploration, project development and mine operations. He was involved in numerous discoveries, either on or leading the team, including Porgera in Papua New Guinea, Big Bell in Wash., Gross Rosebel in Suriname, Hope Bay in Nunavut and White Gold in Yukon.
The Catalyst: $8,000/Oz Gold
Gold is in the middle of a new gold rally that began a year ago, noted Brien Lundin in his Feb. 26 Gold Newsletter edition. During that time, the price continued to set new records, even more rapidly during this year. On March 4, the gold price touched US$2,945 per ounce (US$2,945/oz) then retreated a bit.
"The price of gold has been propelled to dizzying heights," Lundin wrote.
For the foreseeable future, gold should benefit from inflationary pressures, strong central bank buying and massive U.S. deficits, Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) CEO Jason Attew purported during a panel discussion at the recent Prospectors & Developers Association of Canada conference, reported Mining.com on March 2.
A March 4 article on Zacks' website explained that many central banks are buying gold rather than U.S. Treasuries because of the rapidly rising U.S. debt and fiscal deterioration and to diversify away from the U.S. dollar. Along with central bank buying, the author wrote, escalating geopolitical tensions, trade war uncertainty, inflation concerns and safe haven demand all could help buoy the higher gold price this year.
For 2025, InvestingHaven predicts US$3,260 gold and for the rest of the decade, close to US$3,775 in 2026 and US$5,120 by 2030.
Lundin purported the gold price could exceed US$5,000. One just needs to look at its performance during its four historical bull runs, he wrote. In which it increased between 5.6 and 8.2 times, from nadir to acme.
"So if you count the bottom of this bull market to be US$1,050 in 2015, that would project to anywhere from US$6,000−8,500 or so for a peak price during this run. So yes, the future looks bright...if you own gold."
John Newell of John Newell and Associates agrees. "An explosive move toward US$8,000/oz is not just possible; it's increasingly probable," he wrote in a recent article.
"For those looking to hedge against inflation, preserve wealth and capitalize on a potential historic price surge," added Newell, "gold remains one of the most compelling investment opportunities of our time."
"A Very Good Value"
Technical Analyst Maund described StrikePoint as a stock with big upside and very little downside. He purported that StrikePoint could make "huge percentage gains" from where it is trading now, at about CA$0.16 per share. So now is an excellent time for investors to jump in or add to their existing position.
According to the charts, SKP is about to come out of its long bear market since 2021 when it peaked at 20 times the current share price, noted Maund. As such, the upside it offers is "relatively unlimited."
"Strikepoint Gold is very good value here and is likely to start higher soon," Maund wrote.
Ownership and Share Structure
According to Refinitiv, strategic investors own 8.66% of StrikePoint. They are 2176423 Ontario Ltd. (Eric Sprott's company) with 7.17%, and StrikePoint management and board members with 1.49%.
Institutional ownership totals 5.47%. Pathfinder Asset Management Ltd. holds 4.81% of that. The rest of the shares held are in retail.
StrikePoint has 41.59 million (41.59M) outstanding shares and 37.99M free float traded shares. Its market cap is CA$4.6M. Its 52-week high and low are CA$0.90 and CA$0.12 per share.
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