Jr. Miner Continues Finding Visible Gold in Cariboo Assays
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) says it continues to find multiple occurrences of visible gold as it drills at its Quesnelle Quartz Mine in British Columbia's historic Cariboo Gold Camp. One analyst notes it could indicate "potential for high-grade assays."
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced that it continues to find multiple occurrences of visible gold as it drills at its Quesnelle Quartz Mine in British Columbia's historic Cariboo Gold Camp.
Drill hoe QCQ24-20, is being drilled to test the Halo zone discovery to the north and is currently at a depth of 327.66 meters, the company said. It encountered extensive quartz-carbonate+/-pyrite veins and associated alteration of the volcanic host rocks.
"Drill hole QGQ24-20 is the eighth consecutive drill hole in our Halo zone discovery that has encountered visible gold," said President and Chief Executive Officer Frank Callaghan, who is no stranger to success in the Cariboo Camp. "This is reminiscent of our exploration team's success at the Cariboo Gold project, 75 km to the SE, which is now owned by Osisko Development and has recently been permitted to commence mine construction."
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.
Callaghan acquired the Quesnelle Gold Quartz project in 2019. Quesnelle's geology is similar to the other two projects.
"Our current drill hole QGQ24-20 represents another step out from our discovery holes reported earlier this fall, and again is providing visual indication of a gold system of significant scale," Callaghan said.
Golden Cariboo also announced the winterizing of the field camp at Hixon, B.C., allowing the company to drill through the winter except for a break during the holidays.
'Strong Widths, Continuity'
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.
"Visible gold in current drilling indicates potential for high-grade assays from mineralized targets," Couloir Capital Senior Mining Analyst Ron Wortel wrote of the project in a recent research report.
Near-term catalysts for the company include more drill and assay results demonstrating significant grades or widths and better-defined mineralization controls and trends, Wortel said.
Earlier this month, the company announced drill results that represented "strong widths and continuity of gold mineralization" within the Halo zone discovery.
Hole QGQ24-16 intersected 275.31 meters of 0.53 grams per tonne Au (g/t Au) from a depth of 39.01 meters, including 50.99 meters of 1.28 g/t Au from 39.01 meters depth, the company said.
QGQ24-16 was designed to "intersect the northeast trending mineralized quartz-carbonate+/-pyrite veins at a perpendicular angle, which are oblique to observed northwest trending lithological contacts and the mineralized zone," Golden Cariboo said in a release. "Several generations and types of quartz and quartz-carbonate veins are observed within the mineralized zone, and gold mineralization is associated with a carbonate-sericite bleaching alteration of intermediate to mafic volcanic host rocks."
Golden Cariboo said it now intends to define the Halo discovery by drilling a series of holes trending north, a direction amenable to both intersecting northeast-trending mineralized veins and the northwest-trending mineralized zone.
The Catalyst: Gold Expected to Go Higher
Due to optimism from a possible ceasefire in the Middle East and concern over developments in Ukraine and U.S. President-Elect Donald Trump's tariff plans, gold has ridden a roller coaster so far this week, according to Sherin Elizabeth Varghese writing for Reuters.
Spot gold was steady at US$2,627.50 per ounce Tuesday morning, erasing earlier losses, including a "dramatic US$100 plunge" on Monday when the yellow metal retreated from a three-week high, according to the report. U.S. gold futures gained 0.4% to rise to US$2,628.00, she wrote.
Declining interest rates and persistent geopolitical risks are expected to keep driving gold prices higher through 2025, analysts at UBS said, reported Investing.com.
"These elements are set to reinforce gold's status as a safe-haven asset while also benefiting from broader economic conditions anticipated in the coming year," Investing.com's Navamya Acharya wrote.
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."
"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."
Streetwise Ownership Overview*
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN;3TZ:FSE)
*Share Structureas of 10/3/2024Source: Refinitiv and Golden CaribooOwnership 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$12.37 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.