MMI Survey to Target New Gold Trends at Historic British Columbia Mine
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) has commenced with the Mobile Metal Ion (MMI) soil sampling survey at the Halo Zone within its Quesnelle Gold Quartz Mine property in British Columbia. Read to find out what this survey will cover and what analysts are saying about it.
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) has commenced with the Mobile Metal Ion (MMI) soil sampling survey at the Halo Zone within its Quesnelle Gold Quartz Mine property in British Columbia. The survey will cover approximately 12 line kilometers and target areas surrounding both the Halo Zone and the North Hixon Zone. This includes the historic Quesnelle Quartz Mine.
The MMI geochemistry survey is expected to further delineate gold mineralization trends across the property, with a focus on northwest-oriented mineralization. Recent drill results in the Halo Zone have already demonstrated promising outcomes, including 136.51 meters of 1.46 grams per tonne (g/t) gold near surface. The results of this survey are anticipated to refine exploration targets and potentially identify new mineralized trends.
David Mark, Principal of Geotronics Consulting Inc., stated in the news release, "MMI is an advanced soil sampling technique that has the ability to work in areas with a variety of soil types and at-depth targets, which makes this an ideal method to advance exploration on the Quesnelle Gold Quartz Mine property."
The technical data in the company announcement was reviewed by Dr. Sarah Palmer, a qualified person in accordance with NI 43-101 standards.
The Golden Market
On September 3, Yahoo! Finance cited Goldman Sachs analysts, who remarked that "investors should 'go for gold' as the precious metal's stellar run isn't over." Gold prices have hovered above US$2,500 per ounce, a significant increase of 21% year to date, marking it as one of the top-performing assets of the year. Lower interest rates have played a key role in boosting demand for gold, as they reduce the opportunity cost of holding zero-yield bullion. According to Reuters on September 10, 2024, "gold has gained 21%, hitting an all-time high of US$2,531.60 on August 20."
Purchases by central banks have been another critical driver for the sector. Analysts from Bank of America noted that central bank gold purchases reached a record in the first quarter of 2024, bolstering prices and investor sentiment. They further emphasized that "gold has now surpassed the euro to become the world's largest reserve asset, second only to the U.S. dollar." This central bank demand has been instrumental in supporting the price surge, especially as global markets navigate financial uncertainty.
John Newell issued a Buy recommendation for Golden Cariboo Resources, citing the company's promising exploration results, strong management, and strategic positioning within the Cariboo Gold Camp.Additionally, the physical gold market has seen increased investor activity. The World Gold Council noted in July 2024 that "global physically backed gold ETFs have now seen inflows three months in a row, as Western investors pile into gold."
On September 10, Reuters reported that gold prices held firm above the psychological US$2,500 level as market participants awaited U.S. inflation data for insights on upcoming interest rate cuts by the Federal Reserve. Gold's resilience at this price point demonstrated the market's confidence in the metal as a hedge against economic uncertainty.
Han Tan, chief market analyst at Exinity Group, noted that any dips below this level were likely to see renewed buying interest, reflecting consistent bullish behavior by investors since mid-August. By August 20, gold had reached an all-time high of US$2,531.60, with a 21% year-to-date increase, positioning gold as one of the top-performing assets in 2024.
In a related commentary on September 10, 321Gold expressed optimism for the long-term outlook of the gold market, predicting that any forthcoming correction in prices would be short-lived. They projected that after a brief pullback, gold could surge toward the US$3,000 mark, continuing the current bullish trend. 321 Gold emphasized that a dip to around US$2,450 could present one of the best buying opportunities in the history of gold stocks, particularly as tariff taxes and global economic shifts may accelerate demand for gold as a store of value.
Cariboo's Catalysts
Golden Cariboo's current exploration efforts are aimed at building on previous discoveries at the Quesnelle Gold Quartz Mine property. According to the company's investor presentation, the initiation of this MMI survey is part of a broader strategy to advance its exploration programs, including drilling and trenching, throughout 2024. The MMI method's ability to detect buried mineral deposits enhances Golden Cariboo's exploration potential, particularly in underexplored areas of the property.
Additionally, the company's location within the historic Cariboo Mining District and proximity to Osisko Development's adjacent property provide strategic advantages for exploration and development. This multi-phase exploration, including the MMI survey, supports the company's goal of producing an NI 43-101 resource estimate after the 2024 exploration programs.
Third-Party Expert Analysis
*According to John Newell on September 10, Golden Cariboo Resources Ltd. has demonstrated significant potential with its latest drill results from the Halo Zone, which Newell described as a "game-changing breakthrough for the company." The drill hole QGQ24-13 intersected 136.51 meters of gold mineralization, averaging 1.46 grams per tonne (g/t) gold, with higher-grade sections reaching 3.18 g/t over 22.73 meters. Newell emphasized that the discovery, located just 830 meters from the historic Quesnelle Gold Quartz Mine, suggested the possibility of a major deposit and noted that Golden Cariboo is well-positioned for growth as this mineralized trend remains open in all directions.
Newell further highlighted Golden Cariboo's strategic location within the Cariboo Gold Camp, noting that the company stood out among junior exploration firms in this prolific gold district. He expressed confidence that Golden Cariboo could capitalize on this momentum, stating, "In a market where a 1 g/t over 100 meters drill hole can attract major industry players, Golden Cariboo is set to capitalize on this momentum, offering investors a compelling opportunity in the junior gold sector."
Newell also pointed to the company's experienced management team as a key factor in de-risking the project. The team has a track record of developing successful projects, including Osisko Development's acquisition of one mine for CA$330 million. This expertise, combined with a strategic share structure, positions Golden Cariboo for potential share price appreciation as exploration progresses.
Additionally, Newell issued a Buy recommendation for Golden Cariboo Resources, citing the company's promising exploration results, strong management, and strategic positioning within the Cariboo Gold Camp. According to Newell, Golden Cariboo's shares presented a compelling investment opportunity at current levels, trading at approximately CA$0.19 per share at the time of the report.
Streetwise Ownership Overview*
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN;3TZ:FSE)
*Share Structureas of 9/10/2024Source: RefinitivOwnership and Share Structure
According to Refinitiv, management and insiders own 18.52%, or 7.8 million (7.8M), shares of Golden Cariboo Resources. President and CEO Frank Callaghan owns 16.45% or 6.93M shares. Elaine Callaghan has 0.97% or 0.41M shares. Director Andrew Rees has 0.79% or 0.33M shares, and Director Laurence Smoliak has 0.3% or 0.13M shares.
Retail investors hold the remaining 81.48%. There are no institutional investors.
According to Golden Cariboo, it has 38.7M shares outstanding, 16.4M warrants, and 3.6M options.
Its market cap is CA$4.82 million, Reuters reports. Over the past 52 weeks, Golden Cariboo has traded between CA$0.075 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.James Guttman 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, US$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.