Co. Says Visible Gold Spotted in 3 Locations at Nevada Project
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) says visible gold has been found in three locations at its recently acquired Hercules Gold Project in Nevada's Prospective Walker Lane Gold Trend. This comes just as gold prices are hitting new highs, and a bull market in the yellow metal is gathering steam.
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) announced that visible gold has been found in three locations at its recently acquired Hercules Gold Project in Nevada's Prospective Walker Lane Gold Trend.
The project is just 20 kilometers east of the Comstock Lode where 14 million ounces gold (Moz Au) were produced.
"One of the significant outstanding features of the Hercules Gold Project is the scale of the gold and the scale of the property," President and Chief Executive Officer Michael G. Allen said. "Visible gold has been documented at surface at three separate widely spaced locations. Additionally, previous geophysical surveys indicate the presence of an extensive alteration zone that is approximately 13 kilometers long and 6 kilometers wide that is coincident with the known mineralization, all of this is contained within the 100-square-kilometer property."
The Comstock Lode generated fortunes in the 19th century that played a big role in the growth of Nevada and San Francisco. StrikePoint's flagship project, Cuprite also is in the Walker Trend.
Results released in June from an inaugural 3,100-meter drilling program by StrikePoint at Cuprite this year found gold and silver mineralization over five holes, including one hole that intersected 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.
Technical Analyst Clive Maund wrote on September 3 that Cuprite was a big reason to like the stock, and Hercules means "there are now two big reasons for liking it."*
Gold at both Cuprite and Hercules is hosted in volcanic calderas similar to other successful projects in Nevada's Walker Lane gold trend, including Centerra Gold Inc.'s (CG:TSX; CADGF:OTCPK) Gemfield deposit and AngloGold Ashanti Ltd.'s (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) expanded Silicon project.
Maund said that the already lucrative neighborhood "increases the chances of big discoveries being made at Hercules," and called StrikePoint a "golden opportunity being presented to investors right here, right now."
Potentially Economically Significant Gold Grades, Thicknesses
According to StrikePoint, Hercules features a large-scale low-sulfidation epithermal gold target. Potentially economically significant gold grades and thicknesses have been intercepted by multiple operators with over 300 drill holes over a large area, suggesting "a strong gold mineralizing system."
The drilling so far has largely been focused on the northern part of the property and five target areas: Hercules, Cliffs, Loaves, Northeast, and Rattlesnakes. StrikePoint said these targets can now be drilled under an existing Plan of Operations exploration permit.
Two additional targets, Sirens and Como Comet, can be drilled under two Notice of Intent Permits, the company said.
Hercules consists of 1,323 unpatented mining claims and four patented mining claims covering about 100 square kilometers of prospective Walker Lane geology about one hour from Reno, the company said. Historically, ownership was divided between multiple operators, hindering exploration. StrikePoint Gold will be able to explore the property without boundary constraints.
The company has released some historical drilling results, including one hole that intersected 1.64 g/t Au and 18.27 g/t Ag over 30.48 meters, including 5.55 g/t Au and 47.9 g/t Ag over 3.05 meters. Another hole found 1.12 g/t Au and 5.38 g/t Ag over 39.62 meters, including 5.04 g/t Au and 14.93 g/t Ag over 6.1 meters.
'An Exceptional Opportunity'
Maund noted that given the positive news of the Hercules acquisition and the "bright outlook for gold itself ... we can expect it to generate another significant reversal to the upside."
"It is clear that investors are being presented with an exceptional opportunity here with StrikePoint Gold being at very low level and on the point of reversing to the upside," he wrote. "We, therefore, stay long, and the stock is rated an Immediate Strong Buy; in addition, this is a stock that is considered to be worth going overweight on."
Industry veteran and newsletter author Jeff Clark, who has taken over Gwen Preston's The Maven Letter as Paydirt Prospector, noted before the Hercules purchase that StrikePoint has an established team and impressive projects.
He compared Cuprite to Anglogold's Silicon gold project and pointed out that "the stock is owned by Eric Sprott, Crescat Capital, US Global, and many other institutional investors. A wide swath of money managers obviously see potential here."
The Catalyst: Gold Bulls Gathering Steam
The outlook for gold is also distinctly bullish at the moment as it continues to hit new highs after soaring above US$2,600 an ounce last week after the Federal Reserve cut interest rates for the first time in four years. It was at an all-time high of US$2,661.70 per ounce on Tuesday morning.
Further rate cuts are to be expected, based on the latest comments from Fed officials, Mining.com reported.
Federal Reserve Bank of Minneapolis President Neel Kashkari said on Monday that he "expects to lower interest rates by smaller, quarter-point moves at each of the central bank's two remaining meetings this year," the website said.
A major cut like last week's could "increase the tailwind for gold and pull forward the timing for attainment of US$3,000," Peter A. Grant, vice president and senior metals strategist at Zaner Metals, said in a Reuters report by Anushree Ashish Mukherjee and Anjana Anil.
Streetwise Ownership Overview*
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB)
*Share Structureas of 7/18/2024Source: Thomson Reuters"Gold market bulls are locking in bullion prices surging to fresh records, with a milestone of US$3,000 per ounce coming into focus, fired up by monetary easing by major central banks and a tight U.S. presidential election race," Mukherjee and Anil wrote.
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 reported that institutional and strategic investors own approximately 22.37% 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, while the company has a market cap of CA$6.6 million and trades in a 52-week range of CA$0.02 and CA$0.09.
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Important Disclosures:
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.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. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.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.For additional disclosures, please click here.
* Disclosures for the quotes from the Clive Maund article published on September 3, 2024
For the quoted article (published on September 3, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500.Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedClivemaund.com Disclosures
The quoted article 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 only be construed as a recommendation or solicitation to buy and sell securities.