Vancouver Co. Hopes To Follow Feeders to Gold Deposit

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) is using new Induced Polarization (IP) results to identify targets for its maiden drill program at its Cuprite gold project in Nevada, which is close to several other important gold projects.

The IP survey found "a large hydrothermal system active within the Stonewall Mountain Caldera," the company said in a release. "The combined data suggests the possibility of a large epithermal gold deposit at depth similar to Anglogold's nearby 4.22 million gold ounce Silicon Deposit."

This new geophysical suggests that sulphidic feeders with associated silica flooding and large-scale boiling horizons are present in the system, the company said. The interpreted feeder zones appear to be coincident with the highest-grade mercury in soil anomalies and mapped structures at surface.

"These targets appear to be relatively close to surface and of a size that could support a major new discovery in Nevada," StrikePoint President and Chief Executive Officer Michael G. Allen said. "We are actively preparing for the maiden drill program for this property."

The project is also close to Centerra Gold Inc.'s (CG:TSX; CADGF:OTCPK) Gemfield deposit and AngloGold Ashanti Ltd.'s (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) project.

Zonge International completed the additional IP survey at Cuprite early this year. Processing and interpretation by Wright Geophysics of Elko, Nevada, suggested "the elevated chargeability values identify zones of hydrothermal activity," the company noted.

"In addition, a low resistivity layer noted in the data possibly represents a boiling horizon which migrated up and down within this large-scale hydrothermal system, suggesting the possibility of additional bulk tonnage targets at depth," StrikePoint said. "Surface mapping, which reveals structural control, silicification, and widespread hydrothermal alteration, supports the interpretation of the IP data."

StrikePoint is using the data to set up exploration at the project. The company recently received approval and has successfully bonded drilling permits for up to ten drilling sites on the project. A program totaling about 5,000 meters is planned to begin later this month.

The Catalyst: Focus on New Projects

Cuprite consists of about 574 unpatented claims covering approximately 44 square kilometers about 15 kilometers south of Goldfield, Nevada, and 85 kilometers northwest of Beatty. The project is located within the Walker Lane Gold Trend, which hosts AngloGold's Silicon and Merlin discoveries.

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.

In February of 2023, Thibaut Lepouttre with Caesars Report identified the company as a good opportunity for investors. After Allen became CEO of the company, Lepouttre reported StrikePoint Gold has focused on acquiring new projects and strengthening its share structure.

"It effectively is a low-cost acquisition with almost no cash to be paid to the optionor," according to Lepouttre.

New Private Placement

The company also announced it had issued a private placement of up to 50 million units at a price of CA$0.04 per unit for gross proceeds of up to CA$2 million.

Each unit is one common share, and one half of one common share purchase warrant, with each whole warrant, is exercisable into one common share at an exercise price of CA$0.07 per common share for a period of 24 months from closing.

The placement still requires TSV Venture Exchange approval. The company said it plans to use the money for drilling, other exploration activities, and general working capital purposes.

'Be Prepared' for Gold Breakout

According to a report from CNBC Sunday, analysts forecast that the price of gold and silver will rise if the Federal Reserve cuts interest rates this year.

Precious metals strategist Joni Teves from UBS told the network she expected gold prices to rise to US$2,200 per ounce by the end of the year. Monday afternoon, gold was US$2,020.20 per ounce.

While research has found that gold doesn't directly correlate with inflation in any meaningful way, people are likely buying more gold in an attempt to own some sense of stability in an economy that is rife with inflation, a tough real-estate market, and a growing distrust for banks and other financial institutions, said Jonathan Rose, co-founder of Genesis Gold Group, told CNBC.

If a hard landing for the economy leads to a recession, "heightened uncertainty and decreased appetite for risk could drive investors to flock to gold," Katusa Research noted. "In addition, a hard landing would justify additional Fed rate cuts, fanning the flames for higher gold prices."

The site said, "You need to be prepared. If a roaring bull market sends the gold price above (US)$2,200 for any period of time, look out." 

In the longer term, a model by Incrementum assigning probabilities to future gold prices "currently shows a 75% chance of (US)$3,000+ by 2030," John Rubino of John Rubino's Substack noted.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and shares structure, where management and insiders own approximately 0.90% of the company.

According to Reuters, Executive Chairman Shawn Khunkhun owns 0.55% of the company, President and CEO Michael G. Allen owns 0.19%, Director Ian Richard Harris owns 0.13%, and Director Adrian Wallace Fleming owns 0.04%.

Reuters reports that institutional investors own approximately 16.42% of the company, as 2176423 Ontario, Ltd. owns 13.96% of the company, U.S. Global Investors, Inc. owns 1.29%, and Sprott Asset Management L.P. owns 1.17%.

According to Reuters, there are 213.78 million shares outstanding with 182 million free float traded shares, while the company has a market cap of CA$8.55 million and trades in a 52-week range of CA$0.035 and CA$0.085.

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. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3.  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.