Strikepoint GOLD Inc. Begins Drilling at the Porter Idaho Project, British Columbia.
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
STRIKEPOINT GOLD INC. BEGINS DRILLING AT THE PORTER IDAHO PROJECT, BRITISH
COLUMBIA.
August 16, 2018. StrikePoint Gold Inc. (SKP:TSX.V)(STKXF:OTCQB) is pleased to announce
that, further to its press release dated August 14, 2018, it completed the acquisition of
the Porter Idaho Property near Stewart, British Columbia, indirectly through the
acquisition from Skeena Resources Ltd. (“Skeena”) of all of the outstanding shares of
Mount Rainey Silver Inc. (the “Transaction”) on August 15, 2018. The Company’s drilling
campaign for the Porter Idaho property has also commenced.
2018 Drill Campaign
The drill program at Porter Idaho will consist of up to 3,000 meters of diamond drilling
on the property, and is designed to test two main areas of interest:
• possible new extensions to the existing veins that would have not been included
of the historic resource and,
• drilling of known veins to recover ore zone material for assaying, the results from
which could be used to modernize the historic resources.
This is the first drilling on the property since Teck in the early 1980’s, and some of the
planned drill holes would not have been possible during their time due to extensive ice
cover that has since receded. This gives Strikepoint the unique opportunity to test new
targets with the aim of adding ounces to the resource model.
A total of twelve diamond drill holes are planned for this season, with depths ranging
from 100 meters to 300 meters. Holes will be paired from a shared pad to increase our
understanding of the subsurface geometry of the veins.
Porter Idaho Camp
The camp facilities at Porter Idaho are now complete and fully occupied. Strikepoint
chose Matrix to build and manage the camp and opted for a range of prefabricated steel
buildings that could be flown into place and rock bolted to the ground. These buildings
are designed to withstand up to 100 feet of snow burial in the winter and provide a
safer work environment for employees. This style of camp will also be easier to
winterize and will not require lengthy reestablishment in the new year, thus allowing
the 2019 exploration season to start up more quickly.
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
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
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.
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.
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
Transaction
As stated above, the Transaction was completed on August 15, 2018, whereby the
Company acquired Mount Rainey Silver Inc. from Skeena for aggregate consideration of
the issuance of an aggregate of 7,100,000 common shares and 2,400,000 special
warrants (each a “Special Warrant”) and the payment $1,500,000 in cash, of which
$250,000 was paid at closing. The remaining cash payments due are secured via a
pledge over the Mount Rainey shares, with the last payment being due on December 31,
2019, subject to acceleration in the event the Company completes a financing as
outlined in the Company’s August 14, 2018 press release.
The Special Warrants have a five year term expiring on August 15, 2023 and are
convertible into an additional common share of the Company for no additional
consideration at such time and from time to time as will not result in Skeena holding
more than 10% of the Company’s issued and outstanding shares.
The Company also granted to Skeena a 1% NSR on the Porter Idaho property, with the
option to buy back 0.5% at any time for a price of $750,000.
All of the securities issuable to Skeena pursuant to the Transaction are subject to a four
month hold period expiring on December 16, 2018.
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
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.
Suite 507, 837 West Hastings Street Telephone: (604) 602-1440
Vancouver, BC, V6C 3N6 Facsimile: (604) 685-5777 www.strikepointgold.com
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.