Gold Co. Acquires 2nd Project in Nevada's Walker Lane
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) announced it has acquired the Hercules Gold Project in Nevada's prospective Walker Lane Gold Trend, which also contains it flagship project, Cuprite. Read why one analyst calls the stock right now a "golden opportunity."
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) announced it has acquired the Hercules Gold Project in Nevada's prospective Walker Lane Gold Trend, which also contains its flagship project, Cuprite.
"This acquisition represents our second district-scale land package in the Walker Lane," said Chief Executive Officer Michael G. Allen. "Multiple operators have drilled showings across a property and encountered significant mineralization, giving the possibility of a generational mine being discovered on the property."
The company acquired the project through an acquisition agreement signed on August 30 of the issued and outstanding common shares of Alcmene Mining Inc., a wholly owned subsidiary of Elevation Gold Mining Corp., in consideration for CA$250,000 plus reimbursement of reasonable legal expenses. The transaction was at arm's length.
The property is just 20 kilometers east of the Comstock Gold Mine, part of the Comstock Lode that generated fortunes in the 19th century and played a role in the growth of Nevada and San Francisco. Historically, 14 million ounces (Moz) of gold were recovered in the district.
Technical Analyst Clive Maund wrote on Monday that Cuprite was a big reason to like the stock, and Hercules means "there are now two big reasons for liking it."*
Both Cuprite and Hercules are very close 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) project.
Maund said that 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."
The Catalyst: 'An Exceptional Opportunity'
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.
"The Hercules Gold Project is a low sulfidation epithermal gold target," StrikePoint said in a release. "Potentially economically significant gold grades/thicknesses have been drilled by multiple operators over a large area, suggesting a strong gold mineralizing system."
The drilling so far has largely been focused on the northern portion of the property, including the Hercules, Cliffs, Loaves, Northeast, and Rattlesnakes target areas. The property has a Plan of Operations drill permit in place on the northern portion of the property, and two Notice of Intent drill permits on the southern portion of the property, the company said. Historically, ownership was divided between multiple operators, hindering exploration. StrikePoint Gold will be able to explore the property without boundary constraints.
Technical Analyst Clive Maund wrote on Monday that Cuprite was a big reason to like the stock, and Hercules means "there are now two big reasons for liking it."The company released some historical drilling results, including one hole that intersected 1.64 grams per tonne gold (g/t Au) and 18.27 g/t silver (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.
"Certain claims have reserved royalties to a maximum of 3%, with associated buy downs," the company noted. "A portion of the claims are under option with an annual payment of (CA)$50,000 per year to be made between 2025 and 2032."
"Given the positive news of the Hercules acquisition and the "bright outlook for gold itself," Maund wrote of Strikepoint, "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."
'Potential Here'
In addition to Cuprite and Hercules, StrikePoint 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.
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 also compared Cuprite to Anglogold's Silicon gold project.
He 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."
Gold on the Rise
Gold prices have been rising steadily and hit a high of US$2,531.70 per ounce last month. Hitting such heights recently pushed the price of a gold bar (400 troy ounces) to more than US$1 million for the first time.
Some experts expect gold to go even higher. In a Soar Financially YouTube video, Bloomberg Senior Commodity Strategist Mike McGlone predicted that it would only be "a matter of time" before gold hits US$3,000.
"While inflation has cooled in recent months (and the Fed is expected to make a rate cut soon due to that drop), most experts think gold's price surge will continue through 2024," wrote Aly Yale for CBS News MoneyWatch.
Streetwise Ownership Overview*
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB)
*Share Structureas of 7/18/2024Source: Thomson ReutersSean Mason, an investment advisor representative with Fresno Financial Advisors, told the author some economic changes are likely later this year, but the move toward gold will continue.
"Growing concerns around the geopolitical landscape, domestic unrest driven by a hypersensitive presidential election year, and heightened anxiety in a challenging economic environment sets a backdrop for consumers to seek refuge in some semblance of safety," Mason said.
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 in addition to the monthly consulting fee. 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.