What happened? StrikePoint has the Porter Idaho! And more Glacier Creek.

So what? As before, the 2018 field season looks very different for StrikePoint with these new properties than without it.

What next? Time to work on these two exciting properties led by premier geo Andy Randell.

Following my prior article on this deal between StrikePoint Gold (TSXV:SKP) and Skeena Resources (TSXV:SKE) from the start of May (https://ceo.ca/@newton/strikepoint-gold-skp-to-buy-the-porter-idaho-from-skeena-ske), it is great to hear that the company has finalized the acquisition for the Porter Idaho Property. This acquisition adds two prospective deposits that are very different from StrikePoint's other assets in the Yukon, which we discussed in detail in 2017 here (https://ceo.ca/@Newton/StrikePoint-gold-skp-with-shawn-khunkhun-and-andy-randell). This company deserves close attention.

The SKP news release states,

"A two-month period of due diligence work has been completed by Strikepoint technical staff and as such exploration activities will be underway shortly, with a camp established on site before the end of July."

Let's go, StrikePoint! What's more, the terms of the deal changed a bit. I'd say that they improved somewhat.

  • The new terms are $1.5 million cash over 2018 and 2019, and 9.5 million shares at $0.21 for $2 million in shares.
  • The old terms were $1.75 million cash and 7.8 million shares at $0.225 for $1.75 million in shares.

I am grateful the StrikePoint news specifies the cash payment schedule, as well. There are quarterly payments of quarter million dollars, up to $375,000 in 2019. The shift of a quarter million dollars from cash to equity is good to see, as is the fact the deal now drops the requirement of "StrikePoint completing an equity financing generating gross proceeds of not less than $2.5 million." I'd say it's a bad time to raise that money, although some shareholders may relish the chance to buy shares in the company at the relatively low current valuation. Good work by CEO Shawn Khunkhun!

This newest SKP news release reads like a textbook,

"Porter Idaho Property has two shear hosted silver-rich vein systems (the historic Silverado and Prosperity-Porter Idaho mines) that are located 2 kilometers apart. Recent glacial retreat has exposed the ground between the two sites for the first time and so the opportunity exists to connect the two deposits... The showings are 2km apart, located on opposite sides of Mt. Rainey, overlooking the town of Stewart."

Of course, the company says that the focus for the work program is "bridging these two zones through a combination of mapping and diamond drilling." What a great work program -- I look forward to watching them execute on this for years to come. In addition to the glacial retreat, the old workings may provide underground access for mapping and sampling that can be critical for an exploration geologist.

The deal has other good things, too, like the Glacier Creek claims. These claims are partially road accessible from the highway and are 75-meters above sea level. They are "adjacent to and overlap in some areas the historic Dunwell Mine, which produced 9,800 ounces of gold and 329,000 ounces of silver from 50,000 tons of ore between 1926 and 1941." Not bad!

The Glacier Creek claims have been "unexplored for a century", although there has been some underground sampling done at the historic Dunwell Mine next door.

Apparently there has never been any surface exploration done at site, which must have Andy Randell very excited.

One of my favourite parts of the deal is that the transaction comes with a number of municipal lots in the town of Stewart. I can just imagine a few customized shipping containers from Secure-Rite (https://www.secure-rite.com/) for storing drill core and equipment. And if things heat up, then StrikePoint may be able to share some of these facilities with other juniors in the area!

Watch for an exciting season from StrikePoint Gold, which is drilling now and recently reported metallurgical test results!