Strike Gold SRK-V

Strike Gold Corp SRK-V

Major Partnership with Canaco in Tanzania

Strike Gold Corp SRK-V is well on their way to being a premier mining exploration and development company.  Yesterday they announced a key acquisition that completes a strong portfolio of exploration assets partnering with Canaco Resources CAN-V in Tanzania.  Strike Gold acquired an 80% interest in the Boma Gold Project in northeastern Tanzania.  The Boma Project consists of 3 concessions totalling 546km2 and is located 40km northwest of Canaco’s flagship Magambazi project where they have made a multimillion ounce gold discovery.



In just half a year SRK-V has acquired a set of properties that are the envy of most…

1. The initial acquisition focused on the Satterly Lake Gold Project.  Satterly Lake has had some impressive intervals indicating a large open pittable resource; including 117 meters at 1.37 g/t au and 100 meters at 1.19 g/t au.  Satterly has the potential to be another Springpole Lake which is a 3 – 5 million ounce gold deposit owned by Gold Canyon Resources; a $250M company whose value is based solely on Springpole Lake developments.  
2. SRK then acquired 2 high grade large flake graphite projects in Saskatchewan, Deep Bay East and Simon Lake.  These graphite projects have better than average odds of being fast-tracked to production like Northern Graphite’s NGC-V Bisset Creek.  SRK-V grades at Deep Bay East are 5 times those of Bisset Creek giving Deep Bay East the potential to be a low cost producer in the industry when compared to a planned mine like Bisset Creek.
3. In the most recent deal, SRK has the blue sky potential of a major gold discovery like Magambazi in elephant country taking over Canaco’s major gold exploration property, the Boma Gold Project.

With the major success at Magambazi, Canaco is focusing on developing Magambazi giving SRK the opportunity to pick up BOMA at a great price in a deal that makes sense for everyone.  This is a coup for SRK as Canaco, one of the premier exploration and development companies on the exchange, speaks volumes for the confidence that Canaco has in management at Strike Gold Corp to develop THE BOMA GOLD PROJECT.

The deal requires a $1 million cash payment, 6 million in shares and another $6 million in exploration expenditures over the next 3 years.  Canaco does not release total control of the property, as they have retained a 31% back in right for $25 million that will carry SRK’s interest to production if Strike Gold does indeed strike gold in Tanzania.  The property has received limited exploration but 2 samples out of 33 graded 24.3 g/t au and 26.5 g/t au with other samples grading less than a gram per tonne au.

East Tanzania is one of the best places for a bluesky multimillion ounce discovery

Tanzania is an excellent place for gold exploration with a rich gold mining history in Western Tanzania. Recent working of modern geology in Tanzania has extended the age of the rock formations in  the eastern half of Tanzania making the rock formation identical in age to the Western parts of the country that host Tanzania’s world class gold mulitmillion ounce gold deposits.  This reworking of geology in Tanzania has brought new exploration life to the country with the hopes of finding more world class gold deposits like African Barrick’s 12M oz Bulyanhulu mine or more recently Canaco’s Magambazi discovery.  Canaco’s subsequent discovery of the multimillion ounce high grade Magambazi has proven the reworked geologic thesis making northeastern Tanzania one of the best places for a material grassroots modern day discovery.



Strike Gold has spent the first 6 months developing a strong corporate pipeline of world class properties to explore and develop.  Each property has been carefully evaluated on its merits with each showing early indications of development potential at each site.  With properties that have the same early merits as properties owned by Canaco, Gold Canyon and Northern Graphite, SRK has significantly increased the chances of exploration and development success. The next 3 years will be focused on aggressively defining and developing these high impact properties and unlocking the value that SRK has quietly built up over the last 6 months.

Strike Gold is a top pick.


Christopher Skidmore

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