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StrikePoint Gold Inc. — Interim / Quarterly Report 2022
Nov 29, 2022
42754_rns_2022-11-29_bbe248fe-0986-4979-a9a3-720223df080b.pdf
Interim / Quarterly Report
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STRIKEPOINT GOLD INC.
Management’s Discussion and Analysis
Three and Nine Months Ended September 30, 2022 and 2021
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This management’s discussion and analysis (“MD&A”) reviews the significant activities of Strikepoint Gold Inc. (“Strikepoint” or the “Company”) and compares the financial results for the three and nine months ended September 30, 2022. This MD&A should be read in conjunction with the accompanying unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2022 and the related notes thereto, prepared in accordance with International Accounting Standard No.34, Interim Financial Reporting. This MD&A should also be read in conjunction with the Company’s audited annual consolidated financial statements for the year ended December 31, 2021 and the related notes thereto. All documents previously mentioned are available for viewing on www.sedar.com.
All financial information in this document is prepared in accordance with International Financial Reporting Standards (“IFRS”) and presented in Canadian dollars unless otherwise indicated.
The effective date of this MD&A is November 29, 2022.
Management is responsible for the preparation and integrity of the financial statements, including the maintenance of appropriate information systems, procedures and internal controls. Management is also responsible for ensuring that information disclosed externally, including that within the Company’s financial statements and MD&A, is complete and reliable.
This discussion contains forward-looking statements that involve risks and uncertainties. Such information, although considered to be accurate and actual results may differ materially from those anticipated in the statements made. Additional information on the Company is available for viewing on SEDAR at www.sedar.com and on the Company’s website at www.strikepointgold.com.
CORPORATE SUMMARY
StrikePoint is an exploration-stage Company engaged in the acquisition, exploration and development of mineral properties of merit in Canada with the aim of developing them to a stage where they can be exploited at a profit or arranging joint ventures whereby other companies provide funding for development and exploitation.
The Company’s head office is located at Suite 300- 1055 W Hastings St. Vancouver, BC V6E 2E9.
The Company trades on the TSX Venture Exchange under the trading symbol “SKP”. In May 2017, the Company began trading in the United States on the OTCQB under the symbol “STKXF”.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
Management Changes
On November 1, 2022, subsequent to quarter end, the Company appointed Michael G. Allen as President, CEO and Director of the Company. Shawn Khunkhun has been elevated to the role of Executive Chairman and Director of the Company.
Mr. Allen brings over 20 years of multifaceted work experience in the mineral exploration and development business. His experience has been from grassroots to advancing projects through feasibility studies, construction and operations in a variety of geological systems and jurisdictions. In addition, Mr. Allen brings additional capital markets strength to Strikepoint, having raised significant amounts of capital to advance various projects. Most notably, Mr. Allen was President, CEO and director of Northern Empire Resources, where he was responsible for identifying, acquiring and advancing the Sterling project in the Beatty district of southwest Nevada. Northern Empire was sold to Coeur Mining at the all-time high of its share price for approximately $120-million. Recently, Mr. Allen was president of Elevation Gold Mining Corp., Arizona's largest precious metals producer. Mr. Allen is a professional geologist and qualified person under the definitions of National Instrument 43-101.
On February 1, 2022, the Company appointed Marilyne Lacasse as Vice President of Exploration of the Company.
Ms. Lacasse has over ten years of diverse experience working in mineral exploration, ranging from Project Management of feasibility-stage underground projects to grass-roots and project generation. Primarily working in northwest BC and southeast Alaska, she has diverse base and precious metals experience in multiple metallogenic belts and deposit types, including intrusive-related, porphyry, epithermal and orogenic vein types, Archean lode- gold and VMS systems. Most recently, Ms. Lacasse has consulted for multiple junior exploration companies with her Geological Management Firm, Outbounds Consulting, specializing in oversite of drilling programs and high-angle mountaineering geology following her passion for the outdoors and problem-solving skills in harsh mountain terrain. She progressed from field geologist to Project Manager with IDM Mining Ltd. at the Red Mountain Underground Gold Project in northwest BC. Ms. Lacasse has also worked with New Gold, Northern Superior Resources and Cabra consulting throughout her career. She obtained her BSc. in Geology from the University of Quebec at Montreal (UQAM) and is a Professional Geologist and Qualified Person under NI 43-101. She is also a technical advisor for Blackwolf Copper and Gold Ltd.
Outlook
StrikePoint Gold is committed to progressing the Company’s two advanced-stage exploration properties in BC’s prolific Golden Triangle. The Company will continue to acquire, explore and develop mineral properties with the goal of creating value for shareholders. The Company is highly encouraged with ongoing exploration success and the high level of M&A activity in the region.
On July 5, 2022, the Company initiated a discovery-focused exploration program at the high grade Willoughby gold property and Porter silver property. StrikePoint had planned 3,000 metres of drilling at the Willoughby gold-silver and Porter silver properties, in addition to surface sampling and mapping programs, with an emphasis on regional exploration and aggressive step-out drilling.
StrikePoint's 2022 exploration season commenced at the Willoughby gold-silver Property on July 1[st] , 2022. Objectives for the Willoughby exploration program include: Drill northern and southern extensions to the 600 metre long trend of mineralized zones along the Willoughby nunatak; Exploratory drilling to discover new mineralization to the south of the Willoughby nunatak trend.
At Porter, objectives for the 2022 season include: Drill extensions to high-grade silver mineralization outlined in historic resource estimates; Explore for the roots of the silver veins and gold-silver-rich intrusive-related mineralization; Assess the underground access and workings for future rehabilitation.
Drilling planned at Porter initially targeted the past-producing Prosperity, Blind and D veins. Additionally, mapping and sampling will be completed prioritizing exploring the northwest and eastern areas of the Property. Work at the western side will investigate strong alteration and gossan with historic gold-rich prospects along northwest trending structures. On the eastern side of the Property, significant glacial retreat of the Marmot glacier and alpine icefields have revealed new exposures that have never seen modern exploration.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
Coronavirus Pandemic
The current outbreak of COVID-19 and any future emergence and spread of similar pathogens could have an adverse impact on global economic conditions, which may adversely impact the Company’s operations, the operations of its suppliers, contractors and service providers, the ability to obtain financing and maintain necessary liquidity, and the ability to explore the Company’s properties. The outbreak of COVID-19 and political upheavals in various countries have caused significant volatility in commodity prices. While these effects are expected to be temporary, the duration of the business disruptions internationally, and related financial impact, cannot be reasonably estimated at this time.
Similarly, the Company cannot estimate whether, or to what extent, this outbreak and the potential financial impact may extend to countries outside of those currently impacted. Travel bans and other government restrictions may also adversely impact the Company’s operations and the ability of the Company to advance its projects. In particular, if any employees or consultants of the Company become infected with Coronavirus or similar pathogens and/or the Company is unable to source necessary consumables or supplies due to government restrictions, or otherwise, it could have a material negative impact on the Company’s operations and prospects, including the complete shutdown of one or more of its exploration programs. The situation is dynamic and changing day-to-day. The Company is exploring several options to deal with any repercussions that may occur due to the COVID-19 outbreak. (See COVID-19 Safety Plan section below).
Property & Subsidiary Acquisitions and Disposals
On October 20, 2022, the Company completed the sale of its Golden/Nug/Oly, Can East, Horn, How, MacEast, Nordic, Otter, PDM, TET and Tintina Yukon properties to Snowline Gold Corp. (“Snowline”), a Canadian public company, for cash proceeds of $500,000 and the issuance of 500,000 common shares of Snowline to the Company.
On March 1, 2022, the Company decided to drop its interest in the Pluto and Kluane properties, which were located in Yukon.
In June 2021, the Company sold its Angelina property to 1911 Gold Corp. (“1911”), a Canadian public company, for consideration comprised of a cash payment of $20,000 (received) and the receipt of 175,000 common shares of 1911 with a value of $77,000 (received).
During fiscal 2021, the Company decided to drop its interest in the Lobstick property, which was located near the Lake of the Woods, Ontario.
On January 22, 2020, the Company acquired Mount Rainey Silver Inc. (“Mount Rainey”) in conjunction with the acquisition of the Porter Idaho Property. Mount Rainey is the holder of the Porter Idaho Property, and, as per the terms of the mineral property agreement, the Company completed the acquisition of Mount Rainey and title to the Porter Idaho property with a final payment of $750,000 by way of the issuance of 15,000,000 common shares of the Company to Skeena Resources Ltd. (“Skeena”) made on January 22, 2020.
In April 2019, the Company acquired a 100% interest in the Willoughby property, located in northwestern British Columbia, from ArcWest Exploration Inc. (“ArcWest”) (formerly Sojourn Exploration Inc.), a Canadian public company, for cash payments of $10,000 (paid) and $75,000 (paid) and the issuance of 3,000,000 common shares of the Company (issued and valued at $420,000). During fiscal 2020, additional consideration of $40,000 was paid in conjunction with the property purchase agreement.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
Private Placements
On July 2, 2021, the Company completed a non-brokered private placement for gross proceeds of $4,512,500, consisting of 18,050,000 flow-through common share units at a price of $0.25 per unit. Each unit was comprised of one common share and ½ non-flow-through share purchase warrant, with each full warrant exercisable at $0.35 per share, for an 18 month period. The Company recognized a flow-through premium liability of $902,500 on issuance. As at September 30, 2022, the Company expended all of the $4,512,500 flow-through funds raised on eligible exploration expenditures and, accordingly, the flow-through liability of $902,500 was fully derecognized l during the nine months ended September 30, 2022. In conjunction with the completion of the private placement, the Company incurred finder’s fees of $235,200 and issued 972,000 finder’s warrants with the same attributes as the unit warrants.
During October and November 2020, the Company completed non-brokered private placements for gross proceeds of $5,282,995 consisting of 9,523,812 flow-through common share units at a price of $0.21 per unit and 21,886,638 non-flow-through common share units at a price of $0.15 per unit. Each unit was comprised of one common share and one share purchase warrant. Each warrant entitles the holder to acquire one common share of the Company at a price of $0.25 per share for a two-year period. The Company recognized a flow through premium liability of $571,429 on issuance. To December 31, 2021, the Company expended all of the $2,000,000 flow-through funds raised on eligible exploration expenditures and, accordingly, the flow-through liability was fully derecognized. Finders’ fees payable in connection with the financing consisted of $75,597 cash and 389,694 finder’s warrants, with a value of $61,485 using the Black-Scholes Option Pricing Model assuming an expected life of 2 years, expected dividend yield of 0%, a risk-free interest rate of 0.30% and an expected volatility of 107.03%.
British Columbia Properties
Willoughby Project
Willoughby Project is located 27-kilometers East of Stewart in northwestern British Columbia’s mineral-rich Golden Triangle. The Project consists of 995 hectares comprised of three mineral claims. The Project has an impressive record of delivering high-grade Au-Ag results. Backed by an extensive historical database of 12,302 meters in 119 diamond drill holes and 1,356 surface samples collected between 1989 to 1996.
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North Zone: 120.30 g/t Au and 2,434.84 g/t Ag over 3.50 meters in hole U96-02
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- Wilby Zone: 12.66 g/t Au and 59.43 g/t Ag over 12.00 meters in hole 95-53
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Wilkie Zone: 14.66 g/t Au and 31.93 g/t Ag over 3.70 meters in hole 96-77
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Lower Icefall Zone: 8.99 g/t Au and 2.87 g/t Ag over 3.30 meters in hole 96-64
The Project contains eleven mineralized zones, eight of those on the nunataq (NN, North, Edge, Wilby, Wilkie, Upper & Lower Icefall, BOD), two 1-km NE across the ice (Willow, Back Ridge), and one (FS) 700 meters to the SW of the nunataq; all of which are along a 2,700 meters mineralized trend open along strike and at depth. Two distinct mineralization types have been observed at the Willoughby Project:
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a. Structurally controlled, fault-hosted pyrite-galena-sphalerite bearing calcite-quartz veined zone with visible gold. Bonanza grade is linked to structure intersection.
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b. Stratigraphically controlled, concordant with bedding, massive to semi-massive pyrite-pyrrhotitechalcopyrite with lesser sphalerite and galena sulfide replacement within permeable lapilli tuff strata of the Early Jurassic lower Hazelton group. Mineralization is linked with the diorite intrusive sill and dyke analogue to the Goldslide intrusion suite.
Exploration Highlights
The Company has completed four exploration seasons at the Willoughby Project from 2019 to 2022, with 9,316 meters in 39 holes and 614 surface samples. These field programs were completed on time and on budget. The team extended the known zones and stepped out in areas by over 1,000 meters, developed a robust geological model, and encountered new high-grade surface mineralization on the margins of newly exposed, ice-free areas.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
The 2019 drilling successfully has validated the high-grade nature of gold mineralization; two distinct mineralization styles were tested on the Property and stepped out 100 meters to the NE of the North Zone with 2,051 meters of drilling in 12 holes.
Structurally controlled mineralization at the North zone
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26.28 g/t Au and 95.00 g/t Ag over 4.00 meters in hole W19-094
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102.00 g/t Au and 356.00 g/t Ag over 1.00 meters in hole W19-094
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5.29 g/t Au and 34.93 g/t Ag over 4.15 meters in hole W19-097
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72.2 g/t Au and 55 g/t Ag over 1.33 meters in hole W19-097
Stratigraphically controlled mineralization at the Wilby zone
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3.87 g/t Au and 3.52 g/t Ag over 11.70 meters in hole W19-099
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2.45 g/t Au and 28.76 g/t Ag over 6.37 meters in hole W19-098
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3.26 g/t Au and 2.47 g/t Ag over 7.02 meters in hole W19-100
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2.16 g/t Au and 26.49 g/t Ag over 12.52 meters in hole W19-100
The 2020 exploration program improved the continuity of high-grade mineralization at Willoughby by targeting structural traps and further tested broad zones of replacement-style mineralization at the Wilby zone with 1,700 meters of drilling in six holes. Coupled with 232 surface samples targeting high-grade, newly exposed mineralization at the Lower and Upper Icefall, Wilby, Wilkie Edge, and Willow
2020 Highlight Exploration Drilling at Wilby
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3.58 g/t Au and 27.72 g/t Ag over 3.50 meters in hole W20-102
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3.54 g/t Au and 48.60 g/t Ag over 7.90 meters in hole W20-103
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10.04 g/t Au and 5.61 g/t Ag over 7.72 meters in hole W20-106
2020 Highlight Surface Sampling
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Edge Zone: 8.71 g/t Au and 16.5 g/t Ag in sample B0014197
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Edge Zone: 7.60 g/t Au and 3.4 g/t Ag in sample B0014188
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Wilby Zone: 37.3 g/t Au and 263 g/t Ag in sample B0014032
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Wilkie Zone: 17.85 g/t Au and 276 g/t Ag in sample A0037009
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Upper Icefall: 4.24 g/t Au and 24.4 g/t Ag in sample B0014034
The 2021 drilling program followed up on 2020 high-grade drill intercepts at the Wilby zone, tested extensions along strike of the Edge Zone mineralization discovered during the 2020 surface sampling program and extended the Willoughby mineralized trend by an additional 150 meters to the northeast at the Willow zone with 4,000 meters in 17 drill holes. Coupled with the drilling, the Company completed 150 meters of surface channel sampling at the Edge zone and Upper/Lower Icefall to help vector in the zones at depth and test the connections between the mineralized to the South end of the nunataq (Wilby and Lower/Upper Icefall). Additionally, 23 surface samples were collected as part of a regional exploration program. The surface exploration outlined an extension of the North Zone mineralized structures at the NN Zone; an approximate 150 meters step out from recent drilling.
2021 Highlight Exploration Drilling
Wilby Zone
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2.57 g/t Au and 6.52 g/t Ag over 6.00 meters in hole W21-108
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7.99 g/t Au and 220.76 g/t Ag over 5.66 meters in hole W21-109
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4.18 g/t Au and 3.47 g/t Ag over 7.00 meters in hole W21-110Edge Zone
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2.71 g/t Au and 3.84 g/t Ag over 6.50 meters in hole W21-117
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2.47 g/t Au and 3.97 g/t Ag over 3.00 meters in hole W21-118
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- 3.22 g/t Au and 2.11 g/t Ag over 3.50 meters in hole W21-119
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3.33 g/t Au and 3.10 g/t Ag over 3.00 meters in hole W21-120
Willow Zone
- 4.44 g/t Au and 35.72 g/t Ag over 9.88 meters in hole W21-115
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
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8.54 g/t Au and 190.60 g/t Ag over 3.00 meters in hole W21-116
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3.01 g/t Au and 4.48 g/t Ag over 3.00 meters in hole W21-123
2021 Highlight Channel Sampling
Edge Zone
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4.65 g/t Au and 6.13 g/t Ag over 7.00 meters in channel W21-CH-008
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2.94 g/t Au and 4.55 g/t Ag over 11.00 meters in channel W21-CH-010
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3.21 g/t Au and 3.17 g/t Ag over 9.00 meters in channel W21-CH-013
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3.38 g/t Au and 7.48 g/t Ag over 18.00 meters in channel W21-CH-014
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Lower Icefall Zone
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2.74 g/t Au and 10.04 g/t Ag over 5.00 meters in channel W21-CH-005
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3.21 g/t Au and 16.61 g/t Ag over 12.00 meters in channel W21-CH-007
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Upper Icefall Zone
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3.87 g/t Au and 23.97 g/t Ag over 7.00 meters in channel W21-CH-001
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4.68 g/t Au and 30.45 g/t Ag over 6.00 meters in channel W21-CH-004
2021 Highlight Regional Exploration
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NN Zone: 17.45 g/t Au and 576 g/t Ag in sample B0016021
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NN Zone: 13.60 g/t Au and 598 g/t Ag in sample B0016022
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Willow Zone: 49.0 g/t Au and 777 g/t Ag in sample B0016057
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Willow Zone: 7.12 g/t Au and 60 g/t Ag in sample B0016053
2021 Highlight Desktop work
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Compilation of all historical drill data to enhance geological modelling and targeting
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Comprehensive regional geological interpretation to extend mineralized trend
The 2022 program was focused on regional exploration aimed at growing the footprint of the Willoughby mineralization trend and to drill previously untested areas on the Project. A total of 1,500 meters of drilling was completed, along with 84 rock samples collected across the project.
Highlights of the 2022 field program at Willoughby Include:
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Newly discovered “BOD Zone” 125m to the South of the Icefall zone on the Willoughby nunataq, with best grab sample returning 156 g/t Au and 91.7 g/t Ag
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New discovered “FS Zone” 700m to the south of the Willoughby nunataq with best grab sample returning 6.48 g/t Au and 52.5 g/t Ag
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Extension of the main Willoughby showing along NNW structures with samples returning up to 53.9 g/t Au and 1,240 g/t Ag
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Drillhole W22-129 at the north end of the main Willoughby nunataq intersected 2.48 g/t Au and 4.00 g/t Ag over 4.20 metres including 11.45 g/t Au and 13.70 g/t Ag over 0.85 metres
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Drillhole W22-125, at the south end of the Willoughby nunataq intersected 1.02 g/t Au and 27.15 g/t Ag over 5.32 metres in a new zone of mineralization and alteration lying to the west of known mineralized zones.
Terms of the Agreement
In April 2019, the Company acquired a 100% interest in the Willoughby property, located in northwestern British Columbia, from ArcWest Exploration Inc. (“ArcWest”) (formerly Sojourn Exploration Inc.), a Canadian public company, for cash payments of $10,000 (paid) and $75,000 (paid) and the issuance of 3,000,000 common shares of the
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
Company (issued and valued at $420,000). During fiscal 2020, additional consideration of $40,000 was paid in conjunction with the property purchase agreement. ArcWest retains a 1.5% NSR, although this can be reduced to 0.5% for an additional $1,000,000 cash payment.
Porter Project
Porter-Idaho Property
The Porter Project contains two past-producing mines: the Silverado and Prosperity-Porter Idaho. The showings are 2.35km apart, located on opposite sides of Mt. Rainey, overlooking the town of Stewart. The Project is located strategically at the head of the Portland Canal, a deep-water port with year-round, ice-free access.
The initial discovery of silver mineralization on Mt. Rainey occurred in the early 1900s. Prosperity-Porter Idaho veins were the focus of the initial work. The mineralization is hosted in six parallel dipping shear zones (Prosperity, Prosperity West, Blind, D-vein, Wake, Angelo) traced 200 meters on the surface and one kilometre 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). Direct shipping ore was shipped to the port at Stewart via aerial tramway.
The Porter Idaho Project contains a 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).
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). Direct shipping ore was shipped to the port at Stewart via aerial tramway. The Porter Idaho Project contains a 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). |
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). Direct shipping ore was shipped to the port at Stewart via aerial tramway. The Porter Idaho Project contains a 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). |
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). Direct shipping ore was shipped to the port at Stewart via aerial tramway. The Porter Idaho Project contains a 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). |
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). Direct shipping ore was shipped to the port at Stewart via aerial tramway. The Porter Idaho Project contains a 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). |
|---|---|---|---|
| Porter Idaho Project Historical Resource Estimate | |||
| @ 170 g/t Ag cut-off | Avg. Grades | Contained Metal | |
| Category | Tonnes | Ag (g/t) | Ag (oz) |
| Indicated | 394,700 | 868 | 11,000,000 |
| Inferred | 88,900 | 595 | 1,700,000 |
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 a Historical Estimate, as defined in National Instrument 43-101. StrikePoint has not yet determined what work needs to be completed to upgrade or verify the Historical Estimate.
The property has a three-year exploration permit in place. Upon completion of an environmental assessment, it allows for exploration work on the site, including surface mapping, sampling, and diamond drilling. The permit also qualified to establish a 15-person exploration camp on the property.
Exploration Highlights
The Company has completed four exploration seasons at the Porter Project from 2018 and 2020 to 2022, with 4,270 meters in 35 holes and 339 surface samples. The primary exploration goal at the Porter Property is to discover new silver veins to connect the Silverado mine on the north side with the Prosperity/Porter Idaho mines on the south side of the mineralized structural corridor.
The 2018 drilling successfully has validated the high-grade nature of silver mineralization at the D-Vein and tested mineralization at depth at the Blind, Angelo and Wake veins on the Property a with 2,951 meters of drilling in 17 holes. Additionally, 166 surface samples were collected as part of a regional exploration program.
2018 Highlight Exploration Drilling
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D-vein: 819 g/t Ag over 5.00 meters in hole PIP18-010
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Blind vein: 2,241 g/t Ag over 1.00 meters in hole PIP18-012
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D- vein: 2,506 g/t Ag over 0.50 meters in hole PIP18-014
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
2018 Highlight Regional Exploration
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1,355 g/t Ag in sample X956577
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677 g/t Ag in sample X956160
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619 g/t Ag in sample X956164
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555 g/t Ag in sample X956152
The 2020 surface exploration program focused on completing north-south to northwest-southeast traverses along shear structures containing the bulk of the silver-rich mineralization at Porter, working from a known area of mineralization and extending continuity along strike. A total of 82 grab samples highlighted new veins and extensions of up to 3,840 g/t silver at the Porter property. A 250-meter new mineralization trend was encountered parallel to the past-producing Prosperity vein. The D vein was extended 200 meters to the North. New surface vein expressions were noted at the Silverado workings.
2020 Highlight Regional Exploration
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New vein (parallel to Prosperity vein): 240 g/t Ag, 1.52% Pb and 0.22% Zn in sample B0014310
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Prosperity vein: 182 g/t Ag, 1.125% Pb and 1.81% Zn in sample B0014336
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D-vein North Extension: 76 g/t Ag, 0.979% Pb and 0.58% Zn in sample B0014295
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Silverado #2 vein: 1,170 g/t Ag, 0.86% Pb and 0.53% Zn in sample B0014350
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Silverado #4 vein: 1,385 g/t Ag, 4.10% Pb and 0.43% Zn in sample B0014351
The 2021 drilling program tested extension along strike of high-grade silver mineralization in shoots intersected in historical and 2018 drill holes at the past-producing Prosperity, Blind, and D-veins with 800 meters of drilling in 6 diamond drill holes. Additionally, 7 grab samples were collected while conducting regional surface reconnaissance. Due to a staffing shortage and difficult geotechnical conditions consisting of near-surface conjugate joint sets related to glacial unloading and fault zones, both of which caused significant core blocking, only four holes were drilled, none of which adequately tested their intended targets.
The 2022 field program targeted the past-producing Prosperity, Blind and D veins in four holes. Additionally, mapping and sampling was completed prioritizing exploring the northwest and eastern areas of the Property. Work at the western side will investigate strong alteration and gossan with historic gold-rich prospects along northwest trending structures. On the eastern side of the Property, significant glacial retreat of the Marmot glacier and alpine icefields have revealed new exposures that have never seen modern exploration. Results from the 2022 program are still pending and are expected to be received in the fourth quarter.
Terms of the Agreement
In August 2018 (and amended February 11, 2019), the Company completed an acquisition agreement regarding the Porter Idaho property, near Stewart, British Columbia, from Skeena Resources Limited (TSXV: SKE) (“Skeena”) (the “Porter Idaho Transaction”), whereby the Company will purchase the property indirectly through the acquisition of all of the shares of Mount Rainey Silver Inc., a wholly-owned subsidiary of Skeena. The terms of the Transaction were as follows:
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$1,521,000 payable in cash to Skeena ($250,000 was paid on completion of the Porter Idaho Transaction, and $521,000 was paid during the year ended December 31, 2019), with the final $750,000 to be paid by December 31, 2019, in cash or in the equivalent value of common shares or special warrants of the Company, at the Company’s election (issued 15,000,000 common shares on January 22, 2020).
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issuance to Skeena of 7,100,000 Strikepoint common shares (issued August 15, 2018).
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issuance to Skeena of 2,400,000 special warrants of Strikepoint (issued August 15, 2018) and converted July 30, 2019). The special warrants a five-year term. Each special warrant was convertible into one common share of the Company for no additional consideration at the time of conversion.
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grant of 1% NSR on the property with the option to buy back 0.5% at a price of $750,000.
The acquisition of Mount Rainey Silver Inc. closed on January 22, 2020, with the issuance of 15 million common shares of the Company valued at $750,000, as final payment for the acquisition.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
Handsome Jack Property
The Handsome Jack property forms a contiguous land package adjacent to the eastern border of the recently acquired Porter Idaho property. The main known feature within the property is the Melvin adit which was last worked in the 1920s and is assumed to intersect the northerly strike extension of the Angelo vein within the Porter Idaho property. Ore from this adit returned up to 4,286 g/t silver during its production, but outside of this exploration, work has been cursory. Both the Melvin and Angelo veins are visible at the surface, but the area between them was historically obscured by ice, and so the apparent alignment has never been prospected in the field.
Additionally, a two-day program in 1991 identified a 300-metre by 200-metre gossanous zone with anomalous silver, lead, and zinc referred to as the GEE2 showing. Commercially available aerial imagery shows additional gossanous areas of interest within the Handsome Jack property that have never been explored, largely due to the extensive ice coverage that existed up until the last decade.
The Company completed one exploration season at the Handsome Jack Property in 2018 with 1,416 meters in 8 holes and 119 surface samples. The drill program tested northerly extension of the Angelo vein.
Terms of the Agreement
This was a strategic acquisition for the Company as it allows for expansive exploration of the area, including prospective parallel systems to Prosperity-Porter as well as the supposed connections with the Silverado mine.
In August 2018, the Company completed an acquisition agreement with Trifecta Gold Ltd. (TSXV: TG) (“Trifecta”) to purchase the Handsome Jack property, adjacent to the Porter Idaho property, near Stewart, British Columbia (the “Transaction”). The terms of the transaction were as follows:
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$25,000 payable in cash to Trifecta (paid on closing of the Transaction);
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issuance to Trifecta of 250,000 Strikepoint common shares (issued on closing of the Transaction); and
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grant of 1% NSR on the property with the option to buy back 0.5% at a price of $500,000.
Yukon Project
The Yukon portfolio now consists of 730 claims. The properties cover multiple tectonic and metallogenic environments as well as a variety of mineral deposit styles common in Yukon. The properties were previously held by Ryan Gold Corp. (“Ryan Gold”) and its subsidiaries and received significant exploration work, with approximately $25 million (as disclosed in Ryan Gold’s 2014-year end MD&A) in expenditures incurred. The properties have limited holding costs. Previous work by Ryan Gold included significant exploration drill programs on two of the properties, with tens of thousands of rock and soil samples collected during grass-roots exploration programs in several districts throughout Yukon. Additionally, geophysical surveys and geologic mapping programs have outlined many anomalous areas that have not received follow-up work.
During October, 2022, the Company sold the majority of its Yukon properties to Snowline Gold Corp. (“Snowline”), a Canadian public company, for cash proceeds of $500,000 and the issuance of 500,000 common shares of Snowline to the Company.
Quality assurance/quality control
The Company maintains a rigorous QA/QC program with respect to the preparation, shipping, analysis and checking of all samples and data from the properties. Quality control for field sampling and drill samples at the Company's projects covers the complete chain of custody of samples, including sample handling procedures and analyticalrelated work, plus the insertion of standard and blank materials.
Samples are submitted to the ALS Geochemistry facility in Terrace, British Columbia, for preparation and subsequently to the ALS Geochemistry facility in North Vancouver for analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays, and all analytical methods include quality control materials at set
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
frequencies with established data acceptance criteria. The entire sample is crushed, split into a representative subsample using a riffle splitter, and subsequently, 250g is pulverized. Analysis for gold is by 30g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.005 ppm and an upper limit of 10ppm. Samples with gold assays greater than 10ppm are re-analyzed using a 30g fire assay fusion with a gravimetric finish. Analysis for silver is by 30g fire assay fusion with gravimetric finish with a lower limit of 0.5ppm and an upper limit of 100ppm. Samples with silver assays greater than 100ppm are re-analyzed using a gravimetric silver concentrate method. All samples are also analyzed using a 33 multi-elemental geochemical package by 4-acid digestion (ICP-AES).
Drill core samples for the 2021 exploration program were all NQ sized (47.6 mm diameter) drill core labelled, sawn in half, with one-half placed in sealed bags, and shipped with a chain of custody controls to the laboratory. All the Willoughby and Porter-Idaho drill core drilled by StrikePoint Gold Inc. is securely stored in Stewart, BC. The Golden-Oly drill core is stored on-site at the former, now rehabilitated, Golden-Oly camp.
Qualified Person
The technical information for the Company’s Yukon and British Columbia properties included in this MD&A has been approved by Andrew Hamilton, P. Geo. Mr. Hamilton is a qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Properties.
COVID-19 SAFETY PLAN
In March of 2020, the World Health Organization (“WHO”) declared a global pandemic related to COVID-19. The Company is committed to protecting the health and safety of its workforce and the communities in which it operates. Strikepoint’s 2020 field season operated in compliance with the guidelines established by the Provincial Health Officer.
Strikepoint has developed and implemented a COVID-19 Safety Plan to minimize the risk of COVID-19 exposure for its employees, their families and the residents of the community of Stewart, BC.
The exploration team and its operations are based out of the community of Stewart, BC. The programs in 2020 and 2021 kept travel to and from the community to a minimum by drawing on the local workforce when possible and having workers brought in and stay for longer work cycles.
To date, there have been no significant interruptions to the Company’s supply chain or service providers. Assay turnaround has been slowed by COVID-19 related procedures at the assay lab. The Company will continue to move forward its 2022 exploration program in these challenging conditions while monitoring the situation and ensuring backup plans are in place for potential disruptions.
Strikepoint’s health and safety staff have procedures in place, including daily screening of all workers for symptoms of COVID-19, to ensure that in case a possible exposure to COVID-19 occurs, it will be quickly contained. The work force has been divided into work pods. If anyone in a particular work pod exhibits symptoms of COVID-19 (e.g. fever, cough, shortness of breath, difficulty breathing and/or chills), the whole pod is put in isolation until their test results for COVID-19 are back and reported as negative. While in isolation, the worker will be quarantined in a house rented specifically for that person. The quarantined worker may not leave the house. The COVID-19 coordinator will deliver food and other necessities as well as do wellness checks on the worker to ensure symptoms have not escalated.
RESULTS OF OPERATIONS
Three months ended September 30, 2022
During the three months ended September 30, 2022 (the “current period”), the Company incurred a loss of $1,958,581, compared to $2,982,044 during the three months ended September 30, 2021 (the “comparative period”). The significant variances between the current period and the comparative periods are as follows:
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
Exploration costs
During the current period, the Company incurred $1,171,241 (2021 - $3,368,802) of exploration expenditures on the Willoughby property, mainly comprised of $479,609 (2021 - $1,724,999) for drilling and assaying costs, $107,822 (2021 - $302,762) for field costs, $148,498 (2021 - $94,583) for geological personnel, $110,020 (2021 - $276,481) for geological consulting and $325,292 (2021 - $969,977) for helicopter and fuel costs.
During the current period, the Company incurred $962,871 (2021 - $453,775) of exploration expenditures on the Porter property, mainly comprised of $340,695 (2021 - $254,328) for drilling and assaying costs, $61,580 (2021 - $39,727) for field costs, $148,498 (2021 - $32,165) for geological personnel, $62,810 (2021 - $18,223) for geological consulting and $349,288 (2021 - $109,332) for helicopter and fuel costs
Nine months ended September 30, 2022
During the nine months ended September 30, 2022 (the “current nine-month period”), the Company recorded a loss of $2,962,986, compared to $4,895,915 during the nine months ended September 30, 2021 (the “comparative ninemonth period”). The significant variances between the current period and the comparative period are as follows:
Exploration costs
During the current nine-month period, the Company incurred $1,637,485 (2021 - $3,562,310) of exploration expenditures on the Willoughby property, mainly comprised of $616,016 (2021 - $1,632,460) for drilling and assaying costs, $129,980 (2021 - $383,044) for field costs, $257,159 (2021 - $348,016) for geological personnel, $208,121 (2021 - $194,673) for geological consulting and $426,209 (2021 - $1,004,117) for helicopter and fuel costs.
During the current nine-month period, the Company incurred $1,134,887 (2021 - $453,775) of exploration expenditures on the Porter property, mainly comprised of $347,645 (2021 - $254,328) for drilling and assaying costs, $69,020 (2021 - $39,727) for field costs, $185,349 (2021 - $32,165) for geological personnel, $182,667 (2021 - $18,223) for geological consulting and $350,206 (2021 - $109,332) for helicopter and fuel costs.
Gain on sale of mineral properties
During the comparative nine-month period, the Company sold its Angelina property and recorded a gain on the sale of $97,000. No such transaction took place during the current nine-month period.
Share-based payments
During the current nine-month period, the Company recorded share-based payments expense of $70,210 relating to the granting of 1,000,000 stock options. During the comparative nine-month period, the Company recorded share-based payments expense of $1,203,623 relating to the granting of 7,350,000 stock options.
Flow-through share premium reversal
During the current nine-month period, the Company incurred qualifying exploration expenditures totalling $2,772,372. As a result, the flow-through share premium liability of $504,224 (recorded as at December 31, 2021 on the $4,512,500 flow-through private placement proceeds received during fiscal 2021) was derecognized by the full amount of $504,224, leaving no remaining liability.
Liquidity and Capital Resources
As at September 30, 2022, the Company had current assets of $3,023,326 (December 31, 2021 - $6,216,942) (which included cash and equivalents of $2,599,637 (December 31, 2021 - $5,912,983), total assets of $3,072,326 (December 31, 2021 - $6,265,942) and total liabilities of $348,004 (December 31, 2021 - $648,844), of which $Nil (December 31, 2021 - $504,224) relates to a flow-through share premium liability. As at September 30, 2022, the Company had no long-term debt outstanding. There are no known trends in the Company's liquidity or capital resources.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
The Company has financed its operations to date primarily through the sale of mineral properties, issuance of common shares, and exercise of stock options and share purchase warrants. The Company continues to seek capital through various means including the issuance of equity and/or debt.
The Company has not paid any dividends on its common shares. The Company has no present intention of paying dividends on its common shares, as it anticipates that all available funds will be invested to finance the growth of its business.
During June, 2021, the Company completed a non-brokered private placement for gross proceeds of $4,512,500 by way of the issuance of 18,050,000 flow-through common share units at $0.25 per unit (see Private Placements section above).
During the year ended December 31, 2021, the Company received $579,600 from the exercise of 2,898,000 warrants and $80,000 from the exercise of 400,000 stock options.
During June 2021, the Company sold its Angelina property to 1911 Gold Corp. (“1911”), a Canadian public company, for consideration comprised of a cash payment of $20,000 (received) and the receipt of 150,000 common shares of 1911 with a value of $77,000 (received).
Subsequent to September 30, 2022, the Company sold the remainder of its Yukon properties to Snowline Gold Corp. (“Snowline”), a Canadian public company, for cash proceeds of $500,000 and the issuance of 500,000 common shares of Snowline to the Company.
The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and/or commence profitable operations in the future. As at September 30, 2022, the Company has an accumulated deficit of $56,740,672 and has a working capital position of $2,675,322. The Company’s current forecast indicates that it will have sufficient cash available for the next year to continue as a going concern. However, additional financing will be required to carry out exploration and development of its properties.
In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments have adversely affected workforces, economies, and financial markets globally, leading to economic instability. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time.
Summary of Quarterly Results
| Three months | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 |
|---|---|---|---|---|---|---|---|---|
| ended($) | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
| Income (loss) | (588,927) | (511,140) | (1,402,731) | (2,982,044) | (356,346) | (433,723) | (570,682) | (1,958,581) |
| Income(loss) per share | (0.00) | (0.00) | (0.01) | (0.02) | (0.00) | (0.00) | (0.00) | (0.01) |
Fluctuations in quarterly results
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Loss for the Q4 2020 period totalled $588,927 and is mainly comprised of consulting fees of $211,769 and exploration costs of $25,739. Remaining general operating costs were consistent with previous quarters.
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Loss for the Q1 2021 period totalled $511,140 and is mainly comprised of share-based payments expense of $289,877 and exploration costs of $83,501. Remaining general operating costs were consistent with previous quarters.
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Loss for the Q2 2021 period totalled $1,402,731 and is mainly comprised of share-based payments expense of $841,940 and exploration costs of $563,782. Remaining general operating costs were consistent with previous quarters.
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Loss for the Q3 2021 period totalled $2,982,044 and is mainly comprised of share-based payments expense of $71,806 and exploration costs of $3,368,802. Remaining general operating costs were consistent with previous quarters.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
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Loss for the Q4 2021 period totalled $356,346 and is mainly comprised of exploration costs of $108,293 along with general operating costs which were consistent with previous quarters.
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Loss for the Q1 2022 period totalled $433,723 and is mainly comprised of exploration costs of $177,520 and shareholder communications expense of $101,123 along with general operating costs which were consistent with previous quarters.
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Loss for the Q2 2022 period totalled $570,682 and is mainly comprised of exploration costs of $460,740, shareholder communication expense of $45,562 and professional fees of $35,947, offset by a flow-through share premium reversal of $80,002.
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Loss for the Q3 2022 period totalled $1,958,581 and is mainly comprised of exploration costs of $2,134,112, shareholder communication expense of $69,761 and professional fees of $73,777, offset by a flow-through share premium reversal of $396,518.
Commitments
The Company is required to incur exploration expenditures on its mineral claims to meet the conditions of holding its mineral rights and keep the mineral leases in good standing. Each provincial jurisdiction imposes expenditure requirements which vary from province to province and from year to year.
Transactions with Related Parties
During the nine months ended September 30, 2022, the Company entered into the following transactions with related parties:
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a) Paid or accrued management fees of $135,000 (2021 - $185,000) to the Chairman (and former CEO) of the Company.
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b) Paid or accrued professional fees of $90,000 (2021 - $72,500) to a company controlled by the Corporate Secretary of the Company.
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c) Paid or accrued geological consulting fees of $27,000 (2021 - $27,000) to a company controlled by a director of the Company and $426,258 (2021 - $591,710) to a company controlled by the Company’s vice-president of exploration.
Key management personnel compensation disclosed above (including senior officers and certain directors of the Company):
| September | 30,2022 | September 30,2021 | |
|---|---|---|---|
| Short-term benefits | $ | 651,258 | $ 1,483,796 |
As at September 30, 2022, accounts payable and accrued liabilities included $81,189 (December 31, 2021 - $9,000) due to related parties.
Critical accounting estimates, judgments and assumptions
The preparation of the Company’s consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported expenses during the year. Actual results could differ from these estimates.
Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
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i) The inputs used in calculating the fair value for share-based payments expense included in profit or loss and stock-based share issuance costs included in equity. The share-based payments expense and stock-based share issuance costs are estimated using the Black-Scholes options-pricing model as measured on the grant date to estimate the fair value of stock options. This model involves the input of highly subjective assumptions, including the expected price volatility of the Company’s common shares, the expected life of the options, and the estimated forfeiture rate.
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ii) The recognition of deferred tax assets. The Company considers whether the realization of deferred tax assets is probable in determining whether or not to recognize these deferred tax assets.
Contingencies
The Company has no contingencies as at the date of this MD&A.
Off Balance Sheet Arrangements
The Company has no off Balance Sheet arrangements as at the date of this MD&A.
Proposed Transactions
The Company has not entered into any undisclosed proposed transactions as at the date of this MD&A.
Investor Relations
The Company has no investor relations contracts as at the date of this MD&A.
CURRENT SHARE DATA
As of November 29, 2022, the Company has:
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a) 207,346,886 common shares issued and outstanding;
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b) 16,900,000 stock options outstanding with a weighted average exercise price of $0.21, expiring between September 25, 2023 and January 31, 2027; and
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c) 9,997,000 share purchase warrants with an exercise price of $0.35 per share, expiring December 30, 2022.
INDUSTRY AND OPERATIONAL RISKS
The Company is subject to a number of risks and uncertainties, the more significant of which are discussed below. Additional risks and uncertainties not presently known to the Company may impact the Company’s financial results in the future.
Financing Risks
Being a junior mining exploration company in Canada and in the exploration business means that the Company must raise the necessary financings for future exploration. Those financings depend to a large degree on commodity price trends, general investment sentiment for companies in the sector and the ability of the Company’s ability to find and confirm the existence of minerals in sufficient quantities and qualities on its exploration lands. Management is of the view that these risks faced by the Company are not greater than those risk encountered by its peers in Canada.
The Company will require additional financing to conduct exploration on its mineral properties and to fund General and Administration costs. There is no assurance that the Company will be able to raise the required financing through equity financings, debt financings, divestment of its properties or joint venture arrangements. A lack of financing in the future could cause the Company to reduce or postpone exploration spending, reduce exploration and corporate personnel, reduce the size of its mineral property ownership and create going concern issues for the Company.
StrikePoint Gold Inc. Management’s Discussion and Analysis Three and Nine Months Ended September 30, 2022 and 2021
General Economic Risks
As the Company continues to focus on its exploration in Canada, the operations will be subject to economic, political and social risks inherent in doing business in Canada. The risks come from matters based on policies of the government, economic conditions, changes in tax regime, changes in regulation, foreign exchange fluctuations and other factors that may change in the future.
Environmental Risks
All phases of the Company’s operations are subject to environmental regulations and potentially social licensing in the jurisdictions it operates in. World-wide environmental regulation is changing to require stricter standards and enforcement, increased fines for non-compliance, more assessment for projects, and a heightened degree of responsibility for companies and their officers, directors, employees and consultants. Although the company believes that it has taken the proper steps to protect the environment related to its operations, there is no assurance that future changes in environmental regulation in Canada will not adversely affect the Company’s operations or result in substantial costs and liabilities in the future.
Aboriginal Claims Risks
Aboriginal peoples have claimed aboriginal title and rights to portions of Canada. The Company is not aware that any claims have been made in respect of its properties and assets; however, if a claim arose and was successful, such claim may have a material adverse effect on the Company's business, financial condition, results of operations and prospects.
Other Risks
The level of demand for the Company’s exploration is increasingly affected by regional and global demographic and macroeconomic conditions, including population growth rates and changes in standards of living. A significant downturn in global economic growth, or recessionary conditions in major geographic regions, may lead to reduced demand for commodities which could adversely affect the Company’s business and results of operations. Additionally, weak global economic conditions and turmoil in global financial markets, including constraints on the availability of credit, have in the past adversely affected, and may in the future continue to adversely affect, the financial condition and creditworthiness of some of the Company’s customers, suppliers and other counterparties which in turn may negatively impact the Company’s business. Any deterioration in economic conditions due to the current coronavirus concerns, could negatively impact the Company’s exploration.
Forward-looking statements
Certain information set forth in this MD&A, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. The Company is a mineral exploration company and is exposed to a number of risks and uncertainties that are common to companies in the same business. These risks and uncertainties include, among other things, the speculative nature of mineral exploration and development activities, the Company's need for additional funding to continue its exploration efforts, operating hazards and risks incidental to mineral exploration, the Company's properties are in the exploration stage only and do not contain a known body of commercial ore, uncertainties associated with title to mineral properties, changes in general economic, market and business conditions; competition for, among other things, capital, acquisitions of mineral properties and skilled personnel; ability to obtain required mine licenses, mine permits and regulatory approvals required to proceed with mining operations; ability to comply with current and future environmental and other laws; actions by governmental or regulatory authorities including increasing taxes and changes in other regulations; and the occurrence of unexpected events involved in mineral exploration, development and production.