StrikePoint Starts Exploration
I continue to believe we have just started a correction that will work its way into July. The next few weeks should provide investors an opportunity to pick up shares of good juniors at attractive prices. The seasonal indications for gold show a decline into late July if history is followed this year.
This week could get real interesting in the shares of the companies in the GDXJ rebalancing act and there would be fireworks across the sector. That’s not a risk, that’s an opportunity.
A company named StrikePoint (SKP-V) contacted me recently about advertising. They have both an interesting and perhaps compelling story about opportunity for mining exploration in the Yukon.
Given the recent election held in British Colombia a month ago, mining in BC just ran into a giant roadblock when the NDP, traditionally anti-mining, and the Green Party won 44 of the 87 seats possible. During the best of times mining is risky. Jurisdictional risk is the kiss of death as shown lately when the Philippines literally killed half the existing mines in the country in one day and shut down all of the exploration companies. Now BC appears to want to do the same to an industry that is the economic backbone of western Canada.
BC’s loss is the Yukon’s gain. It doesn’t take much to move a drill rig to more favorable climates.
In January of 2017 StrikePoint did a deal with IDM Mining to take over a 100% interest in 22 properties in the Yukon covering 282,000 ha. This portfolio has had over $25 million spent in exploration done on it in the past. StrikePoint gets all of that data in exchange for payment of $150,000 cash to IDM along with 10.5 million shares and a work commitment of $1.5 million to be completed by December 31, 2017. After the deal, IDM owned just over 24% of StrikePoint.
StrikePoint hit the ground running and promptly raised $8 million in two private placements. The company budgeted $2.5 million for exploration this year and plans a budget of $5 million for exploration for 2018. In addition, there are 9.9 million warrants at $.50 good until April of 2019 that are in the money so StrikePoint’s ability to follow through on a discovery is high indeed.
StrikePoint just announced the start of a major drill program at one of their three major gold targets in the Yukon called the Mahtin property. It’s a silver/gold target with grab samples of up to 15.05 g/t Au and 313 g/t Ag. They say it’s an intrusive body mineralized in what they call an IRGS-style.
I’m not sure that will flow off the tongue of most investors. It stands for Intrusive Related Gold System but that definition is more technical in nature than illuminative. Intrusives form the heat engine in many deposits to move the mineral bearing solutions around the system.
StrikePoint is in the process of mobilizing a drill rig to drill a second major project of theirs named the Pluto property. They anticipate starting a drill program a month from now. And they plan exploration scout drilling on a third property in August on their Golden Oly deposit.
I really like the aggressive nature of StrikePoint’s exploration. They have picked the top three major projects out of the 22 they bought in total and are hitting them hard in the short Yukon summer. And have retained the drills to remobilize in the event of good drill results. In addition they have already planned a major budget for exploration for next year and have a potential $4.5 million in warrants in the money.
These projects are hardly the greenest of greenfield properties. All of them have had a lot of exploration in the past. StrikePoint scheduled a major scout-drilling program across the three most attractive targets for this year and is well financed for further work next year. Given that I believe we have a major up move in gold and resource shares approaching, StrikePoint is taking the approach I’d like to see. With only a $30 million dollar market cap, they are a 5-10 bagger potential and that’s what you need to see in a junior.
StrikePoint is an advertiser. I own no shares yet but would certainly consider buying some in a strong correction. Do your own due diligence.