Strikepoint GOLD Inc. Acquires the High-Grade Silver, Porter Idaho Property IN the Golden
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
STRIKEPOINT GOLD INC. ACQUIRES THE HIGH-GRADE SILVER, PORTER IDAHO
PROPERTY IN THE GOLDEN TRIANGLE, BRITISH COLUMBIA.
StrikePoint Gold Inc. (SKP:TSX.V)(STKXF:OTCQB) is pleased to announce, further to its
press release on May 2, 2018, “StrikePoint Gold Inc. to Acquire the High-Grade Silver,
Porter Idaho Property in the Golden Triangle, British Columbia” that it has finalized the
acquisition with Skeena Resources Limited (TSX.V:SKE) of the Porter Idaho Property near
Stewart, British Columbia, indirectly through the acquisition of Mount Rainey Silver Inc.
(“Mount Rainey”), a wholly owned subsidiary (the “Transaction”).
Highlights
• 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 Porter Idaho Project contains an historical Indicated Resource of 394,700
tonnes grading 868 g/t silver, 3.37% lead and 1.41% zinc (435,000 tons @ 25.2
oz/ton silver or a contained 11 million ounces) and an Inferred Resource of
88,900 tonnes grading 595 g/t silver (97,900 tons @ 17.3 oz/ton silver or a
contained 1.7 million ounces).
• The transaction also includes the Glacier Creek Claims situated 4km to the north
of Porter Idaho. These low elevation, road accessible claims have been
unexplored for a century, but are adjacent to 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.
The Porter Idaho – Silverado Mines
The Porter Idaho Project contains two shear hosted silver-rich vein systems: the
Silverado and Prosperity-Porter Idaho. The showings are 2km apart, located on opposite
sides of Mt. Rainey, overlooking the town of Stewart. The Project is strategically located
at the head of the Portland Canal, a deep-water port with year-round, ice-free access.
Since the initial discovery of silver mineralization on Mt. Rainey in the early 1900’s, most
of the work was focused on the Prosperity-Porter Idaho veins, where mineralization is
hosted in six dipping parallel shear zones tracked on surface for 200 meters and one
kilometer down dip with widths between 2 and 13 meters. The vein system was mined
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
between 1929 and 1931 and produced 27,123 tonnes with recovered grades of 2,542
g/t silver (73.8 oz/ton) and 1 g/t gold (yielding approximately 2.2 million ounces of
silver). The ore was shipped to the port at Stewart via aerial tramway.
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. Review of historical documents indicate a structural
relationship between then Porter Idaho and Silverado historic mine sites and work will
focus on bridging these two zones through a combination of mapping and diamond
drilling.
Historic Silver Resource
The Porter Idaho Project contains an historical Indicated Resource of 394,700 tonnes
grading 868 g/t silver, 3.37% lead and 1.41% zinc (435,000 tons @ 25.2 oz/ton silver or a
contained 11 million ounces) and an Inferred Resource of 88,900 tonnes grading 595 g/t
silver (97,900 tons @ 17.3 oz/ton silver or a contained 1.7 million ounces).
Estimates of mineral resources are dated March 10, 2008 and were prepared by
independent consulting geologist N.C. Carter, Ph.D., P. Eng. for Raimount Energy Inc.
and re-stated for Mount Rainey Silver Inc. on May 15, 2012. The foregoing estimates
made use of an extensive database detailing results of both underground sampling
programs as well as surface and underground diamond drilling and were prepared
pursuant to CIM Standards on Mineral Resources and Reserves. Nevertheless, the
reader is cautioned that a Qualified Person on behalf of StrikePoint has not done
sufficient work to verify either the underlying sampling data or the calculation
methodology to consider this to be a current resource and as a result, StrikePoint is
treating this mineral resource as an Historical Estimate, as defined in National
Instrument 43-101. StrikePoint has not yet determined what work needs to be
completed in order to upgrade or verify the Historical Estimate.
The Transaction
The terms of the Transaction are as follows:
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
o $1,500,000 payable in cash to Skeena
o $250,000 payable within 10 business days closing definitive agreement
o $250,000 payable December 31, 2018
o $250,000 payable March 31, 2019
o $375,000 payable June 30, 2019
o $375,000 payable December 31, 2019
o issuance to Skeena of 9,500,000 StrikePoint common shares representing
aggregate value of $2,000,000, deemed at a value of $0.21 per share, based
upon the 20-day VWAP of StrikePoint’s common shares;
o grant of 1% NSR on the Property with the option to buy back 0.5% at any time at
a price of $750,000.
The Property has a three-year exploration permit in place allowing for exploration work
on the site, including surface mapping, sampling and diamond drilling. The permit also
allows for the establishment of a 15-person exploration camp on the property.
Additional Assets
The acquisition of Mount Rainey also comes with the Glacier Creek claims situated
about four kilometers north. These have a lower average elevation (75-meters above
sea level) and are partially road accessible from the highway.
Gold mineralization is hosted in brecciated quartz and quartz carbonate vein systems
controlled by north-trending fault and shear zones, with pyrite, sphalerite, galena and
silver / gold within sulphides.
The Glacier Creek claims 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. Sporadic underground sampling was undertaken in
the old workings in the 1950’s and the 1980’s, but no surface work has been completed
since the discovery in the early 1900’s, and as such have potential for new discoveries.
In addition to the Glacier Creek claims, the transaction also comes with a number of
municipal lots in the town of Stewart.
About the Golden Triangle
The Golden Triangle is an area of northwestern British Columbia that has seen extensive
historic mining and prospecting activity, and has recently been the site of modern
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
discoveries, including the Premier Gold, Snip and Eskay Creek Mines. The area has seen
a resurgence in infrastructure investment which supports exploration activities,
including upgraded transmission lines supplying clean, affordable and reliable
hydroelectric power. Other recent improvements include highway upgrades, new ocean
port infrastructure at the ice-free port of Stewart and the commissioning of three
hydroelectric facilities.
StrikePoint Gold is a well-financed gold exploration and development company. The
company controls a portfolio of gold properties in the Yukon and throughout Canada.
The technical information contained in this news release has been approved by Andy
Randell, P. Geo., Vice President, Exploration of StrikePoint Gold. Mr. Randell is a
qualified person as defined in NI 43-101.
For further information please visit our website: www.strikepointgold.com
ON BEHALF OF THE BOARD of STRIKEPOINT GOLD INC.
Shawn Khunkhun CEO and Director
For more information, contact:
Shawn Khunkhun
604-602-1440
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.