Explorer Divests Historic Silver Site To Accelerate Nevada Breakthroughs

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StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) has entered into a definitive agreement to sell its Porter Idaho property in British Columbia to Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE). The agreement, signed on May 7, formalizes the transfer of one of StrikePoint's non-core assets located near Stewart in the Golden Triangle, a region known for its high-grade silver and gold deposits.

Under the terms of the agreement, Dolly Varden will issue 295,699 common shares to StrikePoint. These shares had a market value of US$1,100,000 at the close of trading on the TSX Venture Exchange on May 7, 2025. The transaction remains subject to TSX Venture Exchange acceptance and the filing of a Prospectus Supplement by Dolly Varden. This filing will allow the consideration shares to be issued without trading restrictions.

StrikePoint President and CEO Michael G. Allen commented on the strategic rationale for the divestment, stating in the news release, "As StrikePoint continues to focus on the Hercules Gold Project in Nevada's Walker Lane, we took advantage of the opportunity to increase shareholder value by divesting non-core projects into an experienced and expanding Golden Triangle explorer in Dolly Varden Silver."

Although the two companies are not related parties under Canadian securities laws, the transaction is considered non-arm's length by the TSXV due to the dual roles of Dolly Varden's CEO, Shawn Khunkhun, who also serves as Executive Chairman and Director of StrikePoint. The agreement was negotiated by disinterested members of both companies' management teams. No commissions or finders' fees will be paid in connection with the transaction.

The Porter Idaho property, which includes a historic silver resource, was previously acquired from Skeena Resources in 2019 and features past production totaling 2 million ounces of silver at an average grade of 2,542 grams per tonne, ending in 1931. A historical resource estimate prepared in 2012 identified 11 million ounces of indicated and 1.7 million ounces of inferred silver, using a 170 g/t silver cutoff.

Precious Metals Amid Shifting Global Finance

In a May 8 article published by GoldFix, the report Gold Reconsidered examined how gold had reemerged as a strategic tool in sovereign monetary operations. The author outlined how nations could monetize gold through gold-forward hedging and carry trades without outright sales. This structure, once common among bullion banks, allowed governments to manage debt and trade imbalances. The report stated, "Gold's transformation under Basel III, coupled with a shift in U.S. monetary strategy, marks a return to gold's core geopolitical function."

On May 9, in an interview between Rick Mills of Ahead of the Herd and Bob Moriarty of 321Gold, there was discussion of the broad shift in capital toward real assets. Moriarty argued that the appeal of commodities stemmed from a growing aversion to "shuffling pieces of paper," adding that "commodities, PMs, are the only safe haven left." Mills agreed that past monetary resets were typically preceded by significant investment into commodities, saying, "Every time there's been a reset in the global monetary system . . .  you get this huge investment into bottomed commodities."

The same interview addressed the contrarian appeal of junior mining equities, with Moriarty noting that dramatic gains were possible in companies that had previously been ignored. He pointed to recent rallies in junior explorers and explained, "Juniors moving 47% in a day is not particularly unusual." Mills highlighted sentiment indicators and emphasized the opportunity, saying, "We nailed the bottom of the entire sector almost exactly."

Moriarty pointed to the increasing flow of capital out of equities and cryptocurrencies and into gold, citing a recent spike in gold prices as validation. He explained, "Gold went up US$300 in three days, and it's only down US$250 in two weeks," and framed it as evidence of shifting investor behavior away from risk assets.

In a video interview posted May 9, Matthew Piepenburg of Von Greyerz described gold as a long-term safe haven amid escalating sovereign debt levels and weakening trust in fiat currencies. He observed that "central banks starting in 2022 had 118 tons of gold; by 2024 they had 290 tons annualized," attributing the surge in state-level gold purchases to declining confidence in the U.S. dollar and Treasuries. Piepenburg argued that gold was now considered superior to sovereign bonds as a strategic reserve, particularly following the weaponization of the dollar in international sanctions policy. "Gold is far more embedded into the system now, far more strategic," he said, concluding that gold's function extended beyond price speculation and into systemic risk mitigation.

Momentum in Nevada: Advancing the Hercules and Cuprite Projects

StrikePoint Gold's investor presentation highlights how the company is increasingly concentrating its efforts on advancing its flagship Hercules Gold Project and the emerging Cuprite Gold District in Nevada, two assets the company identifies as high-potential due to their location, scale, and early exploration results.

The Hercules project, located in Nevada's Walker Lane trend, spans more than 100 square kilometers and contains over 300 historical drill holes. Modeling has defined an exploration target of 40.3 to 65.6 million tonnes grading between 0.48 and 0.63 grams per tonne gold. This target suggests a potential gold range of 819,000 to 1,018,000 ounces, although this estimate remains conceptual and does not yet meet the threshold for a defined mineral resource.

The project benefits from infrastructure including power lines and water access, and proximity to Reno allows for year-round exploration. A plan of operations is already in hand, supporting the potential for large-scale drilling. Multiple targets with visible gold have been identified, and areas such as the Sirens, Cliffs, and Loaves zones have returned notable drill intercepts, including 30.48 meters at 1.63 grams per tonne gold and 18.27 grams per tonne silver.

The Cuprite project, situated approximately 75 kilometers north of AngloGold Ashanti's Expanded Silicon discovery, has yielded mineralization in four of the first five holes over a 1,600-meter trend. The company has identified a geologic structure, referred to as the "Bunker" graben, as a focus for future drilling based on alteration and geochemical indicators. StrikePoint holds the dominant land position in the district and reports growing interest from senior and private mining companies in the area.

As StrikePoint Gold transitions its strategic focus, the sale of its Porter Idaho property provides both capital and clarity. This positions the company to accelerate work on its Nevada assets while retaining upside exposure through its continued holdings in British Columbia.

Expert Assessments Point to Growing Optimism Around StrikePoint Gold

In an April 21 analysis, Technical Analyst Clive Maund rated StrikePoint Gold Inc. as an "Immediate Strong Buy," citing the company's improving technical condition and its position along Nevada's Walker Lane trend. He noted that the downside risk appeared limited, while the upside potential remained "relatively unlimited" following a prolonged bear market from early 2021 highs — when the stock traded at nearly 20 times its current price.

Maund highlighted that StrikePoint had strengthened its portfolio through strategic acquisitions, including 152 claims at the Cuprite property and the Hercules Gold Project in Nevada, both secured at attractive valuations. He pointed to the recent NI 43-101 technical report for Hercules, which outlined an exploration target ranging from 819,000 to 1,018,000 ounces of gold within 40.3 to 65.6 million tonnes of mineralized material at grades between 0.48 and 0.63 grams per tonne — marking a significant advancement in the project's potential.

Maund also emphasized the company's share structure, with 41.6 million shares outstanding, and noted that significant stakes held by Eric Sprott and Pathfinder Asset Management enhanced its credibility. He observed a steep rise in the Accumulation line since mid-February, driven by increasing upside volume — suggesting accumulation by informed investors. His technical targets included CA$0.40 as an initial move, followed by CA$0.90 and CA$1.20.

On May 1, Jeff Clark of The Gold Advisor reported that StrikePoint had released promising assay results from the first four of seven drill holes at the Hercules Gold Project. He noted that the 100-square-kilometer property hosted multiple low-sulphidation epithermal gold targets previously drilled. Results from the 1,400-meter reverse circulation program included 32.0 meters grading 0.54 g/t gold and 4.62 g/t silver, with higher-grade zones such as 4.6 meters at 1.14 g/t gold and 6.1 meters at 1.5 g/t gold.

While Clark acknowledged the grades were modest, he pointed to the widths as indicative of open-pit potential. Describing the company as a "pre-discovery story," he wrote, "We'll keep StrikePoint on Hold until we see what management can do to advance the story at Hercules in the latter half of 2025."

Ownership and Share Structure

According to Refinitiv, Executive Chairman Shawn Khunkhun owns 0.28% of the company, President and CEO Allen owns 1%, Director Ian Richard Harris owns 0.07%, and Director Adrian Wallace Fleming owns 0.02%.

Refinitiv reported that institutional and strategic investors own approximately 13.47% of the company, including 2176423 Ontario Ltd. with 7.17%, and Pathfinder Asset Management Ltd. with 4.81%.

According to Refinitiv, the company has 41.59 million shares outstanding and a market cap of CA$6.24 million. It trades in a 52-week range of CA$0.12 and CA$0.85.