Step-Out Drill Hole Helps Reveal 'Multi-Kilometer Gold System'
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced that drilling had found a "significant expansion" of the Halo zone at its Quesnelle Quartz Mine in British Columbia's historic Cariboo Gold Camp. Find out why a research firm thinks the stock offers a unique opportunity for exposure to gold resource discovery in a Tier 1 jurisdiction.
Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced that drilling had found a "significant expansion" of the Halo zone at its Quesnelle Quartz Mine in British Columbia's historic Cariboo Gold Camp.
Hole QGQ24-17 intersected 452.51 meters of 0.30 grams per tonne gold (g/t Au) near surface from a depth of 10.97 meters, including 27.32 meters at 1.01 g/t Au and 51.26 meters at 1.00 g/t Au, the company said in a release. The broad 452.51-meter intercept of gold mineralization extends the Halo zone 241 meters to the north from the QGQ24-14 collar and discovery holes drilled this past summer.
"To be met with a 452-meter gold zone in our first step-out from the Discovery is incredible," said President and Chief Executive Officer Frank Callaghan. "We're dealing with a multi-kilometer gold system that is capable of producing zones of significant scale, located only a handful of kilometers from a community, rail, and major highway. We have only scratched
the surface of this property and of the Halo zone, which is soon to change with our aggressive drill program currently underway."
QGQ24-17 was the first of a series of northerly oriented drill holes designed to test the northwest-trending mineralized zone and the northeast-trending veins within it, which host the gold mineralization. As currently defined by drill holes QGQ24-16 and QGQ24-17, the horizontal width of the mineralized zone is 286 meters.
"Notably, however, QGQ24-17 was terminated due to proximity to the claim boundary with Osisko Development Corp. (TSXV: ODV), and therefore the true extent of the mineralized zone is still unknown," the company said. "Subsequent drill holes (pending results) were completed to further define the Halo zone to the north and northwest, which also encountered broad and continuous zones of quartz-carbonate+/-pyrite veining containing visible gold."
Analyst Says Potential Reward Significant
The Quesnelle Gold Quartz Mine Property, located 4 kilometers northeast of Hixon in central British Columbia, covers 3,814 hectares and is accessible year-round via an industrial road. Historic mining in the area dates back to the 1860s, with placer and hard rock operations contributing to a long-standing legacy of gold production.
"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.During its exploration, Golden Cariboo has continued to find multiple occurrences of visible gold in its core results.
"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.
Couloir Capital assigned a "Buy" recommendation to company's stock, citing Golden Cariboo's exploration initiatives as a unique opportunity for exposure to gold resource discovery in a Tier 1 jurisdiction.
Even before the release of the assay results, Couloir assigned a fair value of CA$0.40 per share, projecting an upside of 286% from the current share price at the time of the report. While the perceived risk was categorized as high, the potential reward was deemed significant, especially in light of record-setting gold prices.
'Highly Successful' Field Campaign
Earlier this month, Golden Cariboo announced more results from the project.
In the Halo zone, panel samples returned significant results, including a highlight of 5.15 g/t Au over a 1-by-1-meter area from an exposed outcrop. These samples were collected to ensure representative data following earlier grab sampling results of up to 8.47 g/t Au.
The Washburn Lateral claim also yielded a notable grab sample containing 1.27 g/t Au, collected from an area 137 meters southeast of the hole QGQ24-08 drill collar. This location features altered andesitic volcaniclastics with quartz-carbonate-pyrite veining, similar to mineralization observed in the property's Main, Halo, and North Hixon zones. The results indicate potential southeastern continuity of the North Hixon zone onto the Washburn Lateral claim, a parallel trend from the property's Main zone.
"This year's field campaign was highly successful in extending the surface footprint of our multi-kilometer gold system. These results further suggest that significant potential remains on the property yet to be tested with the drill bit, including the southeastern extension of the North Hixon zone, which remains a high-priority target for the company," Callaghan said at the time.
Golden Cariboo said it 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: Despite Noisy Market, Gold 'Positive Overall'
According to Christopher Lewis of FX Empire, the gold market on Monday continued "to see a lot of noisy behavior" but looked "positive overall." Most experts agree gold is still in a bull market.
But Lewis said the market is also waiting to see inflation numbers to understand "where we might be going."
"The gold market initially did pull back just a bit during the early hours on Monday, only to turn around and show signs of life," wrote Lewis. "All things being equal, when I look at this chart, I only see it as one that is building up significant pressure, and this week, I think it will be released mainly due to the fact that we get CPI and PPI, both out of the United States. That'll give us an idea of inflation. If it is lower than anticipated, that probably helps gold, but if it's extremely high, that might hurt it. We'll just have to wait and see."
But Lewis said, "There are plenty of worries out there when it comes to geopolitics. Syria just collapsed, for example. So, I think you've got a situation where buyers continue to at least keep the market somewhat elevated."
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$10.04 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.