In case your neighbors promote their home, the sale worth will inform you a large number concerning the worth of your own home. In British Columbias Golden Triangle, corporations with mines and well-defined useful resource growth plans are getting taken out and the remaining gamers and their buyers can see the favorable writing on the wall.
If you happen to’re shopping for a home, most actual property brokers will preach only one mantra: location, location, location.
StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) CEO and Director Shawn Khunkhun thinks he has a pleasant “fixer higher” in a stylish neighborhood.
“Consider this as actual property: We’re in a neighborhood the place we’re surrounded by $5 to $10 million houses, and our house is buying and selling at $500,000 or $600,000 valuation – and there is a purpose for that. The reason being we’ve not carried out as a lot work as an organization like Skeena Assets Ltd. (SKE:TSX; SKE:NYSE),” Khunkhun tells Streetwise.
“However then you definitely have a look at among the different neighbors the place we have now carried out as a lot work or if no more, and we’re buying and selling at a decrease valuation, I feel there is a super alternative.”
The “neighborhood” is northern British Columbia’s Golden Triangle, witness to greater than 100 years of mining and residential to the highest-grade mine ever found in North America: Barrick Gold Corp. (ABX:TSX; GOLD:NYSE)’s past-producing Eskay Creek.
Over the course of 14 years, Eskay Creek produced 3.3 million ounces (3.3 Moz) gold at a mean grade of 45 grams per tonne (45 g/t) and roughly 160 Moz silver at round 2,220 g/t.
The triangle has additionally witnessed roughly $4.8 billion in mergers and acquisition exercise during the last three years or so.
Pretium Assets Inc. (PVG:TSX; PVG:NYSE) and its high-grade Brucejack gold mine lately discovered itself within the crosshairs of a US$2.8-billion all-cash takeover bid from Australia’s Newcrest Mining Ltd. (NCM:ASX; NCM:TSX; NCM:PNGX).
That deal happened two years after Newcrest unloaded US$804 million to purchase Imperial Metals’ Purple Chris polymetallic mine on the Golden Triangle’s northern tip.
Six months earlier, in March 2019, Ascot Assets Ltd. (AOT:TSX.V) acquired IDM Mining and its Purple Mountain gold-silver challenge (to not be confused with Purple Chris).
Ascot plans to deliver the past-producing Premier gold mine, acquired in a separate deal in 2018, again into manufacturing late in 2022 earlier than bringing Purple Mountain into manufacturing in some unspecified time in the future down the street. Ascot additionally owns about 5% of Strikepoint.
Strikepoint acquired Willoughby, positioned about 6 km east of Purple Mountain, in 2019 for $85,000 money and issuing Arcwest Exploration 3 million shares. Willoughby had about 119 holes drilled on it within the Nineties by now-defunct corporations like Camnor Assets and Gold Large Minerals.
Khunkhun believes Purple Mountain is in a gold system that is a part of a a lot bigger gold system.
An April 2020 feasibility examine pegged reserves at Purple Mountain at 2.5 million tonnes grading 6.52 g/t gold and 20.6 g/t silver or 534,000 oz gold and 1.7 million oz silver, whereas reserves at Premier are 3.6 million tonnes grading 5.45 g/t gold and 19.1 g/t silver or 637,000 oz gold and a pair of.2 million oz silver.
“There was a major quantity of labor carried out on (Willoughby). And we inherited an amazing drill database that highlighted some very high-grade gold and silver intercepts,” Khunkhun tells Streetwise. “For sure I knew this was one of many premier properties within the Golden Triangle. The query that I am making an attempt to reply is, ‘Can we show continuity between these high-grade zones?’ If we are able to show continuity, we have a mine on our fingers.”
Not far south of Brucejack, which initially had difficulties with continuity of its mineralized programs, Strikepoint isn’t just whistling Dixie. Channel samples taken from well-exposed bedrock alongside steep terrain on the Icefall zone at Willoughby present promise.
Highlights embody 94 g/t gold and 31.04 g/t silver (3.38 g/t gold-silver equal) over 15 meters, which incorporates an interval of 11.5 g/t Au and 69.4 g/t silver or 12.53 g/t gold-silver equal over 2 meters.
One other pattern returned 21 g/t gold and 16.61 g/t silver or 3.45 g/t gold-silver equal over 12 meters, together with 4.46 g/t gold over 5 meters and 31.23 g/t silver (4.82 g/t gold-silver equal) over 3 meters.
Strikepoint additionally drilled 23 holes on Willoughby in 2021 however has solely reported 4 holes – with gold-silver mineralization encountered in all of them.
Among the many highlights: Gap W21-109 hit 7.34 g/t gold and 202.85 g/t silver (10.24 g/t gold-silver equal) over 6.16 meters. That gap was a step-out of roughly 25 meters down-dip from 2020 intercept W20-106, which intersected 10.04 g/t gold and 5.61 g/t silver (10.12 g/t gold-silver equal) over 7.72 meters inside a broader interval of 4.19 g/t gold and 18.28 g/t silver over 27.78 meters.
Strikepoint hopes to publish the 19 remaining drill holes and extra channel sampling leads to the approaching weeks as assay labs in every single place try and course of backlogged drill core.
“As soon as we get all of these definitive assays, and we mannequin these 2021 outcomes with the drilling the Strikepoint did in 2020 and 2019. After which we’ll issue within the historic drilling that was predominantly carried out within the ‘90s, and we’ll give you a mannequin. And we’ll exit and drill some severe meters in 2022,” Khunkhun says, including that an preliminary useful resource estimate will possible comply with this 12 months’s drill program.
A few of the largest gamers within the junior mining sector are Strikepoint shareholders. Eric Sprott owns about 16.5%, whereas Skeena Assets owns 6%. Different establishments with vital positions embody Denver-based Crescat Capital, Vancouver-based Delbrook Capital Advisors, and Calgary-based Middlefield Capital.
Strikepoint has about 207 million shares excellent and trades in a 52-week vary of $0.12 and $0.325.
1) Brian Sylvester compiled this text for Streetwise Experiences LLC and supplies providers to Streetwise Experiences as an impartial contractor. He or members of his family personal securities of the next corporations talked about within the article: None. He and members of his family are paid by the next corporations talked about on this article: None. His firm has a monetary relationship with the next corporations referred to on this article: None.
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