January 5, 2021 (Investorideas.com Newswire) Erik Wetterling, aka “The Hedgeless Horseman,” gives his funding thesis for StrikePoint Gold.
On this article I’ll clarify why I personal StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) and why I used to be pleased to have the corporate on as a passive banner sponsor.
My Case For StrikePoint Gold in Quick:
- Two semi-advanced gold and silver tasks within the well-known Golden Triangle
- Confirmed high-grade gold and silver in each tasks
- Willoughby Challenge historic drilling highlights:
- North Zone: 53.21 g/t Au and 211.08 g/t Ag over 5.5 m
- North Zone: 20.08 g/t Au and 1,250.83 g/t Ag over 3.0 m
- North Zone: 120.30 g/t Au and a couple of,434.84 g/t Ag over 3.5 m
- Wilby Zone: 12.66 g/t Au and 59.34 g/t Ag over 12.0 m
- Wilby Zone: 7.62 g/t Au and 1.43 g/t Ag over 11.70 m
- Wilkie Zone: 14.66 g/t Au and 31.93 g/t Ag over 3.7 m
- Porter Challenge has a useful resource of 12.7 Moz of silver at very excessive grades (595-868 g/t Ag)
- Backed by Ascot Assets and Skeena Assets (potential future consumers)
- Owns 22 properties throughout the Yukon territory besides
For round C$35 M (@ 0$0.19/share) you get round C$5 M in money, two semi-advanced flagship tasks with confirmed high-grade gold and silver endowment, and the Porter Challenge already has a silver useful resource with bonanza-grades. Which means there’s meat on the bones already and Strikepoint may have beta to gold and silver. I feel that is vital as a result of I hate the considered ending up with no gold or silver in a treasured metallic bull market. The truth that each are positioned in one of many hottest and greatest tier #1 jurisdictions is icing on the cake. With that mentioned it’s after all exploration which is the primary attraction with the corporate. That there’s exploration potential at Porter is clear given that every aspect of the mountain has seen historic mining and if the corporate is ready to join the high-grade hits at Willoughby then that undertaking may get actually thrilling. Lastly, the corporate has an enormous portfolio of early stage tasks in Yukon which could possibly be offered, JV’d or labored on in a hopefully purple scorching treasured metallic market.
I see StrikePoint has having some margin of security attributable to already having confirmed silver assets and confirmed high-grade mineralization at each of the corporate’s flagship tasks. If additional success is made at one or each tasks then there’s clearly some critical upside potential from this valuation stage. Having two bigger firms invested in Strikepoint is an efficient kicker as a result of a) Votes of confidence and b) Pure acquirers in case StrikePoint hits it huge.
With a really spectacular pipeline of tasks it signifies that StrikePoint may have their palms full and never be compelled to exit and purchase new tasks in a doubtlessly very popular market when valuations is likely to be “stretched.” On this regard I salute Shawn Khunkhun for having been very pragmatic (acquired tasks on a budget throughout downturns) and ahead trying (loading the corporate with tasks BEFORE the mania section of the bull market).
Meat and Potatoes
1. World Class Jurisdiction:
StrikePoint’s two flagship tasks are positioned within the well-known Golden Triangle district of British Columbia, Canada. That is an space that has seen plenty of mining and there are a number of mines up and working as we communicate. Personally I’ve am comparatively choosy in relation to jurisdictions these days so I actually do favor to put money into tier #1 jurisdictions attributable to a) I would like to have the ability to hold regardless of the firm finds and b) I would like bigger firms to be comfy buying (taking threat) and jurisdictional threat is clearly an enormous issue for a long run funding.
… As you’ll be able to see within the slide above there are numerous gamers concerned on this space and that features Newmont, Hochschild and Newcrest. This alerts that majors are certainly enthusiastic about mining operations on this space, which is excellent. Additionally it is value declaring that Ascot Assets and Skeena Assets, who each personal a stake in StrikePoint, have tasks close by. Which means there ought to be potential for synergies if StrikePoint finds one thing materials, which clearly would hike up the implied worth by way of a takeover.
2. The Artwork of Worth Creation
The subsequent slide is a testomony to how enterprise savvy Shawn Khunkhun and Strikepoint have been:
… The corporate has been selecting up tasks for pennies on the greenback throughout quick time period downturns within the metallic house. It is a signal of people who find themselves properly conscious that their job is to create as a lot worth as doable to shareholders. The acquisitions would have costed much more in the event that they have been performed right now. Ahead trying, strategic considering are traits one desires to see within the stewards of 1’s capital.
3. The Flagship Tasks
Each of StrikePoint’s flagship tasks are shut to at least one one other in addition to near Ascot Assets’s Premier Mine and Pink Mountain Challenge:
… As said earlier this helpful each from a strategic and tactical stand level because it will increase the implied worth of the tasks by way of the potential of changing into satellite tv for pc deposits in addition to the chance of being purchased sooner or later. Moreover it helps from a tactical stand level to have extra folks working within the space.
Willoughby appears to be positioned within the “proper place” in that the present targets are proximal to an vital stratigraphic marker that’s “linked to most main deposits” as per:
As you will notice within the slide under there have been some actually nice historic intercepts which hit high-grade gold and silver throughout a number of zones and the million greenback query is that if a few of these zones will find yourself being related:
This following is from the September information launch titled “STRIKEPOINT GOLD UPDATES 2020 EXPLORATION PROGRAM FOR NORTHWEST BC GOLD AND SILVER PROPERTIES“:
Willoughby Gold-Silver Property
The primary targets of the 2020 exploration program on the Willoughby gold-silver property has been to enhance continuity of high-grade and to check broad zones of disseminated gold and silver mineralization encountered in earlier drilling and floor sampling. Floor exploration commenced on July 29, 2020 and drilling started on August 10, 2020. The Property is positioned on the east aspect of the Cambria Icefield, seven kilometers east the advanced-stage Pink Mountain Gold Deposit owned by Ascot Assets.
The Property is underlain by Higher Triassic Stuhini rocks and Decrease Jurassic Hazelton volcanic and sedimentary rocks which have been intruded by an early Jurassic-aged hornblende-feldspar porphyry, just like and doubtlessly comagmatic with the Goldslide Intrusive suite at Pink Mountain. Intrusive-related mineralized zones encompass sturdy pyrite mineralization with lesser pyrrhotite, sphalerite, galena, chalcopyrite, and native gold. Eight gold and silver mineralized zones have been recognized to-date over the mineralized pattern which extends onto Decade/Teuton Assets’ Del Norte Property.
Intensive floor sampling has been accomplished, concentrating on high-grade newly uncovered mineralization with 262 floor samples collected, with all assays at the moment pending. As well as, over 1,700 meters of drilling in seven holes have been accomplished so-far in 2020, with all holes submitted for assay.
3.2 Porter Challenge
The second flagship undertaking is the one known as the “Porter Challenge,” which comprises two previous producing high-grade silver mines and a historic useful resource:
Just like Willoughby the million greenback query right here is that if the veins which have been mined on reverse sides of Mt. Rainey will show to be related. The next snipped is from the beforehand talked about news release:
Porter Silver Property
On the high-grade Porter Silver Property, the main target of the 2020 exploration season shall be linking the two-past-producing high-grade silver mines on the property: the Silverado (northwest) and Prosperity/Porter Idaho (southeast) mines that outcrop 2,000 meters aside on the alternative sides of Mount Rainey, overlooking the city of Stewart, BC. Upcoming work will embrace exploration for brand spanking new veins which have been recognized outdoors of the historic assets and previous producing areas. The Silverado glacier has retreated considerably over current years, with prospecting deliberate in newly uncovered areas. In steeper areas of the Property, skilled mountaineering crews and climbing geologists shall be employed to pattern new exposures. A drill program based mostly out of Stewart has been deliberate to focus on high-grade silver veins beforehand reported by way of historic stoping, drilling, floor sampling in addition to current exploration packages by StrikePoint.
3.3 The Yukon Portfolio
StrikePoint even have just a few different aces up their sleeve within the type of a really giant portfolio of tasks positioned within the Yukon Territory, Canada:
… I feel none of those are mirrored within the present valuation of the corporate and I feel they may find yourself offering optimistic surprises when the market will get scorching once more. In different phrases I feel there shall be urge for food for these tasks when the bull market wakes up for actual once more and that Strikepoint would possibly be capable to promote, JV and/or to work on them when the time is true. I imply image a state of affairs the place gold, silver and miners are lastly on hearth. When this occurs Strikepoint shall be sitting on a Yukon portfolio that’s large enough for a number of firms to separate between them.
Take the large Pluto Project for instance (23 km at its widest level). This one has a number of areas with very excessive gold in soul numbers:
… Or how in regards to the Golden Oly Project (word the dimensions):
… Once more, I feel nothing of the Yukon portfolio is mirrored within the present valuation and that Shawn and the crew will reward shareholders by way of worth creation when the time is true. Nothing beats having a bunch of very giant tasks (with apparent golden smoke) in a tier #1 jurisdiction in a raging gold bull. Simply because the market forgets about this aspect of the intrinsic worth of StrikePoint does not imply that you could do it as properly. With that mentioned, this worth will in all probability take time earlier than it’s unlocked however in mild of the corporate’s Enterprise Worth which is round US$23 M, I reckon it could possibly be very significant for present holders with a long run view.
In StrikePoint Gold you get a targeted crew which have proven to be very sensible by way of creating worth for shareholders and I do know Shawn and his crew will do all the pieces inside their energy to make all shareholders pleased. If I had to decide on just a few features of StrikePoint to press on it could be a) Each flagship tasks are already confirmed to host high-grade gold and silver which decreases threat, b) StrikePoint has beta by way of its historic silver useful resource, c) The exploration potential at each flagship tasks is clear by way of connecting already confirmed zones of mineralization, d) Hidden worth within the Yukon portfolio which can in all probability be unlocked in the future, and e) Each flagship tasks are proximal to different growth belongings held by bigger firms in a tier #1 jurisdiction.
Further issues to think about:
- Backed by Ascot Assets, Skeena Assets and Eric Sprott
- Proximity to the bigger firms above
- Satellite tv for pc deposit potential in a tier 1 district
- Reducing the brink by way of reaching essential mass
- Will increase the chance of being monetized
- Crescat Capital (Quinton Hennigh) has given StrikePoint thumbs up which fits a good distance in my e book
Lastly I might say that regardless that I do not essentially see tier #1 exploration potential in StrikePoint this perception is offset by the mix of the tasks being de-risked (not grassroot exploration stage), near bigger tasks and being in among the finest jurisdictions round. In different phrases I feel “even” satellite tv for pc deposits on this neighborhood may find yourself being value fairly a bit in a gold and silver bull. Particularly if Tom Kaplan is appropriate by way of his concept that firms working in tier #1 jurisdictions would possibly find yourself changing into a bubble inside a bubble sooner or later. It is also very good to know that the corporate already has high-grade silver on the books which implies there isn’t any probability of the corporate ending up in a silver bull with none silver no less than. Moreover I bought the sense from speaking to Shawn that he desires StrikePoint to be very aggressive with the drill bit in 2021.
As all the time there aren’t any ensures of success however solely good or unhealthy threat/reward. Personally I feel the chance/reward in StrikePoint is excellent largely due to the corporate’s (Shawn’s) capability to select up a bunch of tasks on a budget in preparation for probably the most thrilling stage of the bull market. Due to this fact I personal shares of the corporate. I don’t know what the approaching outcomes shall be from Willoughby however I do not base my case on any single (smallish) drill marketing campaign and never a lot by way of success is priced in proper now anyway.
Lastly, make up your individual thoughts as all the time and do not put all of your eggs in a single basket (unfold your bets).
Meals for thought…
Erik Wetterling, aka “The Hedgeless Horseman”
Notice: This isn’t funding recommendation. I’m not a geologist nor am I a mining engineer. This text is speculative and I can’t assure 100% accuracy. Junior miners might be very unstable and dangerous. I’ve purchased shares of StrikePoint Gold within the open market and I participated within the newest non-public placement. I should buy or promote shares at any cut-off date. I used to be not paid by any entity to put in writing this text however the firm is a passive banner sponsor of The Hedgeless Horseman. Due to this fact it’s best to assume I’m biased so all the time do your individual due diligence and make up your individual thoughts as all the time.
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