Jr. Looks to Expand Cariboo District Gold Trend With Strategic Acquisition
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) says it has acquired a district lot adjacent to the past-producing Quesnelle Quartz Mine in British Columbia's Cariboo Gold District. With much visible gold seen in recent cores, an analyst believes there is "potential for high-grade assays."
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced it has acquired a district lot adjacent to the past-producing Quesnelle Quartz Mine in British Columbia's Cariboo Gold District.
The Washburn Lateral is a 20-hectare claim immediately northeast of the historic mine and contains the undersurface mineral rights to the claim area, the company said.
The collar for GCC's discovery hole QCG24-08 in the North Hixon Zone, which returned 0.29 grams per tonne gold (g/t Au) over 263.1 meters is about 43 meters northwest of the boundary with the Washburn Lateral, Golden Cariboo said.
"Acquiring the Washburn Lateral is an important milestone for the company, providing us with a key parcel of land within our multi-kilometer gold trend on our property," President and Chief Executive Officer Frank Callaghan said. "With this district lot now in hand, the company is able to test our gold trend to the southeast from our discovery made in the North Hixon Zone earlier this year."
Once owned by the Quesnelle Quartz Mining Company Ltd., the lot was originally located in 1913 and has seen little exploration and "has remained virtually untested by drilling," the Golden Cariboo said in a release.
One possible drill hole on the lot appeared to have been drilled in 1972 on the southern corner and "totaled 91.44 meters, intersecting younger, post-mineral cover rocks," the release said.
The company said it is acquiring the Washburn Lateral District Lot for a cash payment of EUR10,000 and 200,000 company shares at a price of CA$0.20 per share.
Excitement at the Camp
Golden Cariboo, a Canadian explorer-developer, is targeting a potential multimillion-ounce gold resource at the 3,814-hectare Quesnelle project, where gold, silver, lead, and zinc were produced historically, according to its Investor Presentation.
The company's neighbors in the mining district include Osisko's Cariboo Gold Project, Spanish Mountain Gold Ltd.'s (SPA:TSX.V) Spanish Mountain deposit, Omineca Mining and Metals Ltd.'s (OMM:TSX.V; OMMSF:OTCMKTS) Wingdam mine, and Taseko Mines Ltd.'s (TKO:TSX; TGB:NYSE.MKT) Gibraltar mine.
Callaghan began rediscovering the Cariboo Camp in the mid-1990s as Barkerville Gold Mines Ltd. He and his then team discovered a gold deposit at Bonanza Ledge and advanced the project to production. He also assembled and developed the Cariboo Gold Project. Ultimately, Osisko Royalties acquired Barkerville and the assets in 2015 for US$338 million. Osisko is about to restart mining operations in the camp.
Subsequently, in 2019, Callaghan acquired the Quesnelle Gold Quartz project, where he aims to repeat his previous successes, given the property's geology is similar to that of the other two projects.
In a recent interview with Streetwise Reports, Callaghan said there is excitement at the camp during the current drilling there as they continue to find mineralization and visible gold in drill cores.
He said the company is seeing the gold in "every drill hole," so they keep moving forward chasing the deposit and working at the site 24 hours a day.
Potential for High-Grade Assays
On November 5, the company announced results from rock sampling during its 2024 field campaign, including highlights of up to 8.47 g/t Au in an outcrop in the Halo zone and 1.13 g/t Au in an outcrop near the Pioneer showing, 1-kilometer north-northwest from the nearest drill collar in the Halo zone.
A total of 16 rock samples were collected from outcrops at the Halo zone, North Hixon zone, and Pioneer area. In the Halo zone, a newly uncovered outcrop 101 meters to the northeast from the nearest drill collar contained grab samples of 8.47 g/t Au, 6.59 g/t Au, and 2.39 g/t Au in altered andesite tuff with quartz-carbonate veins. More samples taken 1 kilometer to the northwest returned highlights of 1.13 g/t Au and 0.40 g/t Au, the company said in a release.
Previously, the company reported observing multiple instances of visible gold in several holes earlier this fall and summer.
"Visible gold in current drilling indicates potential for high-grade assays from mineralized targets," Couloir Capital Senior Mining Analyst Ron Wortel wrote in a recent research report.
Given that Golden Cariboo is continuing its exploration program at Quesnelle throughout 2024, near-term catalysts include drill and assay results demonstrating significant grades or widths and better-defined mineralization controls and trends, according to Wortel.
Drilling continues to be "nonstop" and "underbudget," Callaghan has said.
The Catalyst: Gold's Bull Market Continues
Gold hit a record high at the end of October but has seen volatility since the U.S. election last week.
With the dollar index rising 0.5% to its highest level since early July, gold became less attractive to non-dollar buyers. Last week, the index surged more than 1.5% to 105.44 following the announcement of Trump's victory, Reuters reported.
"The market's attention has focused to the second-order effect since the red wave," said Daniel Ghali, commodity strategist at TD Securities, according to Reuters.
However, most experts agree the gold bull market is not disappearing soon. Ian Salisbury wrote for Barron's that "most of the arguments gold bulls make and have been making throughout 2024 look stronger after Trump's win."
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"We are still relatively constructive on gold," said Taylor Krystkowiak, investment strategist at Themes ETFs, according to Salisbury's report. "Why does gold go up? It's geopolitical uncertainty, it's deficit spending, and it's inflation. Right now, all those stars are aligned."
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. 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$11.47 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. 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. and Omineca Mining and Metals 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.