Thinking positively about SKPThe key word here that is very important is "continuity" regarding the unexplored 2 kilometres between the past producing Porter Idaho and the Silverado mine. The Kitco interview with Shawn Khunkhun was well done, and only when the markets wakes up will the stock start to get the recognition it truly deserves. I eagerly await the drill core results from the labs which have been backed up, but I think they are due to be released imminently. Past production was on the order of about 80 silver equivalent ounces per ton. The extremely high grade samples on surface are a good indication representing the inherent potential waiting to be unlocked by confirmation of drill core, since the market does not respond to samples alone because they can be cherry picked.
The speculation here is that the 2 kilometres connecting these past producers is likely to contain the same style and grade of mineralization previously mined and we cannot quantify nor can we ascertain how many silver equivalent ounces there are, but the results could be quite spectacular leading me to believe that there are millions of silver ounces in resources here. To put them into reserve status would then require a more extensive drill program, but it may not be necessary if the company simply gets permitted to restart the mine and grow organicly. However inquiring minds may wish to know just how large the potential resource is and to do that measurements and calculations and models have to be constructed to better understand the structure, strike and dip of the ore body.
I beleive that we have seen the bottom for silver prices, and we are just now starting a serious rally, so the timing is excellent for shareholders.
I do not know what benefit there is to being near a deep water seaport at Stewart, but having close proximity to a town with roads and power and an experienced workforce is a big plus if these mines are put back into production and will provide a boon to the local economy.
The gold and base metal credits certainly would help to achieve a low all in sustaining cost of production. It may not be Strikepoint's business plan to go to production, but simply to make a great discovery and let a larger player think about taking it up to the next level involving a plan to put the mines back into prodcution. Therefore, I think that SKP is primed for good results and is a potential takeover target, and also has the ability to partner for a carried interest if shareholders wish to resist takeover offers and instead maintain an interest in the mines by way of a carried interest or a JV.
DOC.