4 Reasons To Invest in Canadian Gold Explorer, Co. Says
As with its past two ventures, this mining junior is developing its current project into a potential takeout target. Read on to discover the factors supporting the Buy rating on its stock.
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) is "working hard, finding more gold," President and Chief Executive Officer (CEO) Frank Callaghan told Kevin Harrington, an original "Shark Tank" investor, in an Oct. 9 interview. "Stick with the winning team."
The Canadian explorer-developer is targeting a potential multimillion-ounce gold resource at its 3,814-hectare Quesnelle project near Hixon, British Columbia, in the prolific Cariboo Camp, according to its Investor Presentation. Historically, gold, silver, lead and zinc were produced at Quesnelle.
The company's neighbors in the mining district include Osisko Development Corp. (ODV:TSX.V) (Cariboo gold project), Spanish Mountain Gold Ltd. (SPA:TSX.V) (Spanish Mountain deposit), Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) (Wingdam mine) and Taseko Mines Ltd. (TKO:TSX; TGB:NYSE.MKT) (Gibraltar mine).
Callaghan began rediscovering the Cariboo Camp in the mid-1990s as Barkerville Gold Mines Ltd., assembling and developing the Cariboo Gold Project. He and his team then discovered a gold deposit within the project naming it Bonanza Ledge, advancing that discovery to production. He also acquired the past producing QR mine and mill, and with that asset, put his second gold mine into production. Ultimately, Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) acquired Barkerville and the assets in 2015 for $330 million, and Osisko Development is about to restart mining operations in the camp.
Subsequently, in 2019, Callaghan acquired Quesnelle, where he aims to repeat his previous successes, given the property's geology is similar to that of the other two projects.
4 Reasons To Invest
In the interview, Callaghan told Harrington the following factors make Golden Cariboo an attractive investment:
1) Ongoing positive drill results. Every hole drilled this year at Quesnelle has returned gold and significantly wide intercepts, Callaghan said.
Two recent highlight intercepts were from the Halo zone. They were:
136.51 meters (447.87 ft) of 1.77 grams per ton gold (1.46 g/t Au) from near surface, including 39.33m (129.04 ft) of 2.07 g/t Au (hole QGQ24-13)204.85m (672.08 ft) of 0.8 g/t Au, including 143.85m (471.95 ft) of 1.01 g/t Au (hole QGQ24-14)The company is carrying out a targeted and systematic drill program to further define Halo and beyond and identify additional mineralization conducive to bulk tonnage mining, the CEO noted in the release. Another goal is to determine whether the Halo, North Hixon, and Main zones are separate or whether Halo and Main are connected and North Hixon, separate, runs alongside.
2) The skilled, experienced team. Callaghan told Harrington, "The team that we have is second to none. They find gold, and they're good at it."
Golden Cariboo's current onsite technical team, consists of several key members, according to the company.
Qualified Person: Jean Pautler, P.Geo., is an independent consultant with her company JP Exploration Services Inc. and has over 40 years of experience working in mineral exploration with a particular focus on British Columbia and the Yukon.
Structural Geology Consultant: Dr. Sarah Palmer, P.Geo., has over 35 years of experience in economic geology and mineral exploration.
The project manager, charged with overall supervision of Quesnelle, is Angelique Justason. Her 30-plus years of experience in the industry includes being instrumental in the Bonanza Ledge deposit discovery with Callaghan.
Driving the activities onsite at the project are Myles Dickson, project geologist, and Trevor Smith, senior geologist, who have worked together in the past. Dickson, in his decade in mining exploration, has been involved with Callaghan's Cariboo gold project, NexGen Energy Ltd.'s (NXE:TSX; NXE:NYSE.MKT) Rook 1 project, and Fission Uranium Corp.'s (FCU:TSX; FCUUF:OTCQX; 2FU:FSE) Triple R deposit. Smith has worked on numerous exploration projects in Europe and North America in his seven years in the industry, including Westhaven Gold Corp.'s (WHN:TSX.V) Shovelnose gold project.
Julia Mehner, M.Sc., and Sebastian Triebert, M.Sc. are the geologists in charge of core logging and have done exploration for precious and battery metals internationally.
*"This management expertise significantly derisks the exploration process, as they have the knowledge and experience to navigate the challenges of bringing a project from discovery to production," John Newell, of John Newell & Associates, told Streetwise Reports. "Their involvement also signals confidence in the project, with insiders holding approximately 20% of the company's shares."
3) Goal to be taken out. Callaghan said his intention with Quesnelle is to develop it to the point of being ready to go into production. He also pointed out that Quesnelle is surrounded on three sides by property owned by Osisko, the largest landholder and operator in the Cariboo Camp and the acquirer of Callaghan's previous company, Barkerville Gold Mines.
4) Positioning as a gold junior. Callaghan cited the strategy, buy low, sell high, and noted the junior gold market is "very low right now." He implied that the current opportunistic window with this type of gold mining company could close soon.
"I think that that's probably going to change because the price of the metal is really high," he added.
Gold Sector Advice: Invest in Juniors
With the gold price continuing its ascent toward US$2,800 per ounce (US$2,800/oz), industry experts agree with Callaghan.
Brien Lundin touted junior mining stocks in the Oct. 2 issue of his Gold Newsletter.
"From a fundamental standpoint, everything seems to be turning in favor of gold," he wrote. "We're in a long-term, secular bull market. And we need to be positioned for it. One of the best ways, of course, is through high-quality junior mining equities."
Of the three types of mining companies, majors, mid-tiers, and juniors, the juniors offer the greatest leverage to increasing commodity prices and the highest potential return, Ahead of the Herd's Richard Mills purported recently.
"Investing early in the development cycle of the right gold junior, one that has an excellent project in a safe jurisdiction, led by experienced management with the ability to raise money, can reap huge rewards five, 10, even 20 times your money isn't uncommon," wrote Mills.
U.S. Global Investors' Frank Holmes explained, in an Investing.com article, that all gold equities are an "incredible opportunity" now because they are not trading at levels that reflect the rising gold price.
"And since gold mining stocks have typically moved out of lockstep with the broader market," he added, "they offer a level of diversification that I believe can help hedge portfolios against market downturns."
According to Technical Analyst Clive Maund, the charts indicate that gold is about to "go into vertical melt-up mode" once it breaks above roughly US$2,800/oz. Accordingly, "the gains in all gold-related investments at this time should be spectacular."
FXEmpire Analyst Christopher Lewis thinks gold eventually will reach US$3,000/oz, he wrote in an Oct. 15 article. Factors supporting gold continue to be the U.S. dollar, the Federal Reserve's monetary policy, central banks' gold buying and geopolitics around the globe. Short-term pullbacks in the gold price are buying opportunities, Lewis added.
"Even if we were to break down below the US$2,600 level, I have no interest whatsoever in shorting gold," he wrote. "It is far too strong, and I think that would only bring in more value hunting."
Throughout 2025, other experts estimate the gold price will range from US$2,800-3,200/oz, according to a recent Skilling article. Longer term, analysts predict it could reach US$6,800/oz by 2040, representing a 7.2% annual rate of return. Central bank policies, global economic trends and inflation are forecasted to keep influencing the price.
Adrian Day of Adrian Day Asset Management wrote in his Q3 Portfolio Review, "The clear winner over the next year or so is likely to be gold. Both sentiment and the macro environment are turning in gold's favor, with much more to come."
Buy for Gold Discovery Exposure
Couloir Capital Senior Mining Analyst Ron Wortel, in a recent research report, recommended Golden Cariboo as a Buy "for exposure to gold resource discovery in a Tier 1 jurisdiction as the market delivers record gold prices."
He highlighted a strong technical team as one of the many investment highlights. Callaghan's history in the Cariboo Camp shows his "entrepreneurial drive and commitment to restarting the Cariboo Gold Rush," Wortel wrote. "Frank and his team are bringing this drive, experience and commitment to making another discovery to the work in Hixon . . . These factors are part of this company's value proposition. Can they do it again?"
Exploration upside is also noteworthy, wrote the analyst, given that Golden Cariboo owns three additional claim groups in the camp: Rainbow, RimRock and White Pine.
Streetwise Ownership Overview*
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN;3TZ:FSE)
*Share Structureas of 10/3/2024Source: Refinitiv and Golden CaribooWortel's fair value price on Golden Cariboo implies a 90% return for investors.
According to Newell, Golden Cariboo offers investors "a compelling opportunity in the junior gold sector." As the company furthers its exploration work, significant growth and additional high-grade gold discoveries are likely, which will unlock more value.
Ownership and Share Structure
According to the company, management and insiders own 30% of Golden Cariboo Resources. President and CEO Frank Callaghan owns 16.45% or 6.93 million shares; Elaine Callaghan has 0.97% or 0.41 million shares; Director Andrew Rees has 0.79% or 0.33 million shares; and Director Laurence Smoliak has 0.3% or 0.13 million shares.
Retail investors hold the remaining 81.48%. There are no institutional investors.
According to Golden Cariboo, it has 50.3 million shares outstanding, 24.83 million warrants, and 3.8 million options.
Its market cap is CA$8.85 million. Over the past 52 weeks, Golden Cariboo has traded between CA$0.08 and CA$0.36 per share.
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Important Disclosures:
Important Disclosures:
Golden Cariboo Resources Ltd. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000. Omineca Mining and Metals Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Cariboo Resources Ltd., Omineca Mining and Metals Ltd., and Osisko Gold Royalties Ltd.Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
* Disclosure for the quote from the John Newell article published on September 6, 2024
For the quoted article (published on September 6, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, $2,500.Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.John Newell Disclaimer
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.