Jr. Drills Vein Zone Until it Hits Claim Border With Osisko
Golden Cariboo Resources Ltd. says the proximity to another company's mineral claims was the only thing that made it stop drilling in a vein zone at its Quesnelle project in British Columbia. One expert says the stock is a "compelling opportunity."
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced it was forced to stop drilling in a vein zone at its Quesnelle Gold Quartz Mine property in British Columbia due to proximity to Osisko Development Corp.'s (ODV:TSX.V) mineral claims.
Drill hole QGQ24-17 was terminated at a depth of 477.32 meters. It was the first time this area has been drill tested, the company said.
"We just kept hitting veining and alteration in this drill hole!" President and Chief Executive Officer Frank Callaghan said in a release. "The only thing that stopped us from drilling further was the claim boundary with Osisko Development Corp."
The company said it saw similar styles of veining in this hole and previous holes drilled at the Halo Zone.
"These are exciting broad vein zones, now we've just got to see what the assays say," Callaghan said.
Drill hole QGQ24-16, drilled to a depth of 362.1 meters, had shown visible gold, the company previously reported. Both it and QGQ24-17 intersected "extensive quartz-carbonate veining and alteration."
"We've only scratched the surface of this massive gold system," Callaghan said at the time.
New Zone Shows Possibility of Major Deposit, Analyst Says
Both drill holes are targeting extensions of mineralization in the newly discovered Halo zone, the company said. Drill hole QGQ24-16 was drilled at an azimuth of 315 degrees and a dip of -45 degrees, while QGQ24-17 was drilled at an azimuth of 000 degrees and a dip of -45 degrees.
The broad intersections from the Halo zone, located just 830 meters from the historic Quesnelle Gold Quartz Mine, hint at the possibility of uncovering a major deposit, John Newell of Newell & Associates wrote on September 6.*
According to Newell, these results position Golden Cariboo to capitalize on further exploration in one of British Columbia's most prolific gold districts.
Besides Osisko, the company's neighbors in the mining district include 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 said he 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 CA$330 million, and Osisko Development is about to restart mining operations in the camp.
Callaghan acquired the Quesnelle Gold Quartz property in 2019 and aims to repeat his previous successes, given the property's geology is similar to that of the other two projects.
'Can They Do It Again?'
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 developing their new Halo Zone discovery.
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.
Wortel'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.
The Catalyst: Fresh Highs for Gold
It's a good time to be looking for the yellow metal. While the rush hasn't translated fully to junior stock prices yet, gold is off on a new bull market this year. It climbed 1% Tuesday to hit an all-time high of US$2,748.23 per ounce.
Factors driving the market include safe-have demand, U.S. election uncertainties, and the Middle East war, "combined with expectations of further monetary easing to amplify bullion's surge," Reuters reported.
"Geopolitical tensions remain the primary driver... Two weeks out from the U.S. election, the race seems to still be a dead heat, and so a fair amount of political uncertainty is also driving safe haven interest in gold," Peter A. Grant, vice president and senior metals strategist at Zaner Metals, told Reuters.
Streetwise Ownership Overview*
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN;3TZ:FSE)
*Share Structureas of 10/3/2024Source: Refinitiv and Golden Cariboo"Certainly, if things heat up further in the Middle East, we could see US$3,000 before the end of the year, but I'm sort of leaning more towards Q1," Grant said.
This rise has "resulted in big returns for the investors who bought in earlier this year," Angelica Leicht reported for CBS News on Monday. "For example, the investors who purchased gold in March when it hit US$2,160 per ounce have seen their gold values increase by nearly 27% in the time since. That's a huge uptick in value in a matter of months, especially on an asset that's known more for long-term growth."
Ownership and Share Structure
According to Golden Cariboo, 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.
The company said it has 50.3 million shares outstanding, 24.83 million warrants, and 3.8 million options.
Its market cap is CA$8.44 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:
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.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.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 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.