StrikePoint raising $2.0 million for Nevada gold drilling

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StrikePoint Gold Inc. [SKP-TSXV, STKXF-OTCQB] said Tuesday it is aiming to raise $2 million from a non-brokered private placement after recently announcing a plan to drill its Cuprite gold project in Nevada.

Cuprite is located in the Walker Lane Trend of Nevada between Centerra Gold Inc.’s [CG-TSX, CAGDF-OTC] Gemfield deposit and AngloGold Ashanti Ltd.’s [AU-NYSE, ANG-JSE, AGG-ASX] Expanded Silicon project.

StrikePoint also has two advanced-stage exploration projects in British Columbia’s Golden Triangle region, including the past-producing Porter-Idaho project and the high-grade gold Willoughby project.

Under the terms of the financing, StrikePoint aims to issue up to 50 million units priced at $0.04 per unit. Each unit will consist of one common share and one half of a share purchase warrant. Each whole warrant can be exchange into one common share at an exercise price of $0.07 for two years after the closing date.

StrikePoint recently said results of recent induced polarization geophysical survey on the Cuprite project suggests that it may contain a large epithermal gold deposit at depth. The company said it is compiling newly acquired data to refine drill targets for an upcoming program that is scheduled to start in late February, 2024. The program is expected to consist of 5,000 metres of drilling in up to 10 holes.

Willoughby and Porter are both advanced staged projects.

Willoughby is adjacent to the Red Mountain underground gold/silver project which is being developed by Ascot Resources Ltd. [AOT-TSXV, AOTVF-OTCQX] following its recent acquisition of IDM Mining Ltd.. Located 15 kilometres northeast of Stewart, Red Mountain ranks among the most advanced gold projects in Canada and contains a measured and indicated resource of over 2.0 million ounces of gold.

StrikePoint acquired the Willoughby Property from ArcWest Exploration in March, 2019.

Back in the early 1990s, mineralization was defined over a one-kilometre strike length on the Willoughby property. That was achieved via the completion of 4,625 metres of diamond drilling. Historic drill results have included 20.5 metres, grading 24.99 g/t gold and 184.22 grams silver, as well as 11.7 metres of 40.11 g/t gold and 109 g/t silver, both from the North zone target.

At the Main zone target, historic drilling returned 13 metres, grading 13.37 g/t gold and 63.43 g/t silver.

Another five target zones on the property have all returned significant gold and silver grades in drill core or surface channel samples.

The Porter Project hosts two historically producing silver-rich vein systems: the Silverado and Prosperity/Porter Idaho. They are located over two kilometres apart, outcropping on both sides of Mount Rainey, overlooking the two of Stewart.

StrikePoint shares were priced at $0.04 on Tuesday and trade in a 52-week range of $0.085 and $0.035.

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