Co. Encounters 136.51 Meters of 1.46 G/T in World Class Drill Hole With Visible Gold, in New Discovery

1. 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.
2. 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.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4.  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

1. For the quoted article (published on September 6, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$2,250.
2. 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.

Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) encountered a broad, near-surface intersection of gold mineralization at its Quesnelle gold quartz project in British Columbia's historical Cariboo Camp, according to this morning's news release.

"This intercept represents a brand new, near-surface discovery of a broad zone of strong and consistent gold grades," President and Chief Executive Officer (CEO) Frank Callaghan said in the release. "Encountering a new gold zone of this magnitude is a considerable step forward for the project."

Hole QGQ24-13 encountered 136.51 meters (136.51m), averaging 1.46 grams per tonne gold (1.46 g/t Au). Mineralization consisting of quartz-carbonate veining was first intersected at a depth of 9.49m. This hole was placed 830m away from the historic Quesnelle mine, in the Halo zone, open in all directions.

A metallic analysis will be done on select assays from this hole.

The company also reported results from drill holes QGQ24-09 and QGQ24-10. The best of the intercepts is 0.73m of 37 g/t Au, from QGQ24-09.

In an interview with Battery Commodity, Callaghan commented on the results, saying, "I have had some large drill holes in my life; this is by far the largest intercept that I've had." He noted his excitement and stated the company is anticipating more results of this nature moving forward.

In light of these results, John Newell of John Newell and Associates told Streetwise Reports, "With the mineralized trend open in all directions, Golden Cariboo is positioned for substantial growth and further high-grade gold discoveries in one of British Columbia's most prolific gold districts."

He continued, "These results underscore the significant potential of the Quesnelle Gold Quartz Mine property, making Golden Cariboo a standout exploration company in the Cariboo Gold Camp. As exploration intensifies, including additional assays and metallic screening, the company is poised to unlock further value from this exciting new find. In a market where a 1 g/t over 100 meters drill hole can attract major industry players and boost share prices, Golden Cariboo is set to capitalize on this momentum, offering investors a compelling opportunity in the junior gold sector."

Visible Gold Encountered

In other recent news, samples from holes QGQ24-13 through QGQ24-15, drilled in an area of quartz veining, showed multiple intercepts of visible gold. Golden Cariboo submitted these to the lab.

"Visible gold in current drilling indicates potential for high-grade assays from mineralized targets," Couloir Capital Senior Mining Analyst Ron Wortel wrote in a September 3 research report.

Callaghan told Streetwise Reports in a recent interview that the intercepts in these three holes are going to be very wide, greater than 100m.

"Because of the amount of visible gold, it opens up a whole strike length that is in excess of 1 kilometer (1 km) long," he added. "It's looking large, and we think that there's a parallel system to it."

Developing Project at Historical Mine

Golden Cariboo Resources is exploring and developing Quesnelle, a 3,814-hectare property it has been consolidating over the past four years near the community of Hixon in B.C. The company is targeting a potential multimillion-ounce gold resource, according to its investor presentation. Quesnelle is a historical mine where gold, silver, lead and zinc were produced.

"We acquired the Quesnelle Gold Quartz Mine property [in 2019] due to the potential to replicate results at the nearby Cariboo gold project and Bonanza Ledge mine with its similar geology," Callaghan said.

These three projects, Quesnelle, Cariboo [owned by Barkerville Gold Mines Ltd., a subsidiary of Osisko Development Corp. (ODV:TSX.V)] and Bonanza Ledge (owned by Osisko), all are in the Cariboo Camp, producing again now but still underexplored, Wortel wrote.

Other companies in the camp are 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), among others. Golden Cariboo and Osisko are the only two public companies that solely own property in the region.

John Newell said, "These results underscore the significant potential of the Quesnelle Gold Quartz Mine property, making Golden Cariboo a standout exploration company in the Cariboo Gold Camp."

Wortel pointed out that Quesnelle is in a similar setting to that of Barkerville, a historical hard rock gold mine in the area. The Cariboo Camp extends on trend 75-plus km north of Wells–Barkerville.

"We believe that Golden Cariboo's projects are well located to be part of this opportunity to fully explore the region and find more big gold deposits," Wortel wrote.

The company has been drilling Quesnelle since 2022, beginning in the area of the past-producing mine, the Main zone, then stepping out with holes QGQ24-13 to QGQ24-15 placed about 1,863m away. Now, Golden Cariboo is drilling the area in between, in phase two of its current 2,500−5,000m campaign.

Callaghan pointed out that one of the widths shown in drill results was about 860 feet of continuous gold intercept.

"The system is that big, that wide. It's a monster," he said. "It's really very big, very, very large, the biggest I've ever seen. You might drill copper deposits that have 800-foot intercepts. but you don't drill gold deposits that have 800-foot intercepts. It's really very unique."

Golden Cariboo is "led by a team that restarted the gold rush" in the Cariboo Camp, noted Wortel. In fact, Quesnelle is President and CEO Callaghan's third project there, having put two others into production. His 30 years in the camp included assembling the Cariboo gold project near Wells in B.C. and making the original Bonanza Ledge discovery.

Gold in "Its Most Spectacular Bull Market"

Gold is now in the early stage of what is expected to be its "most spectacular bull market to date," purported Technical Analyst Clive Maund last month.

"In short, we are looking at a perfect storm that will lead to gold doing a 'moonshot,'" Maund wrote. "Investors can, therefore, buy gold and most gold-related investments with confidence."

Marin Katusa wrote in a September 3 article that gold surpassed US$2,500/oz last month, "and it's just getting started. Despite its impressive heights, gold's growth story is far from over." Potential rate cuts by the U.S. Federal Reserve and the upcoming U.S. election are pushing gold higher, he asserted.

Brien Lundin of Gold Newsletter highlighted in the September 5 issue a phenomenon he has seen and talked about in every one of the bull market cycles during the past 40 years, and that is, "gold wants to go higher. No matter what stocks do, regardless of where Treasury yields head and despite dollar strength or weakness, gold more often than not keeps moving ahead."

Couloir Capital's Wortel recommended the company as a Buy "for exposure to gold resource discovery in a Tier 1 jurisdiction as the market delivers record gold prices," he wrote.

Joe Cavatoni, the World Gold Council's senior market strategist for the Americas, said in a recent interview he is seeing expectations for a gold price between US$2,700 and US$3,000, and they are well founded.

"We see a very strong case to support those estimates in terms of the overall trajectory of the gold market," Cavatoni said.

Red Cloud Securities, for instance, just increased its gold price assumptions, it reported on September 4. Now the firm's gold forecast for H2/24 is US$2,500/oz, and for the longer term (by 2028), US$2,000/oz, previously US$1,900/oz.

"We expect the gold price to be supported by imminent rate cuts by the U.S. Fed, a cooling labor market in the U.S., and safe haven demand given ongoing conflicts in Europe and the Middle East," the analysts wrote. "Uncertain times are ahead in the lead-up to the U.S. presidential election in November, which should also help bolster the gold price."

With respect to gold mining, also looking further out, the global market is expected to grow to US$274.2 billion (US$274.2B) in value by 2032 from US$201.2B in 2032, according to Market Research Future. This suggests a 3.5% compound annual growth rate for the market during the period. Significant growth drivers are the increasing population of high net worth individuals and a growing demand for gold jewelry, including among men.

The Catalyst: Lots of Drill Results

A steady flow of drill results from Quesnelle is expected over the next several months, including those of completed drilling and of drilling in progress, noted Callaghan.

In his previously mentioned interview with Battery Commodity, Callaghan pointed out that on Hole QGQ24-13, the company is "still doing metallics" and expects to have those results back in the next couple of weeks. 

After that, the company still has two additional holes around 45 degrees from Hole QGQ24-13.

He said, "It's about an 860-meter step out from a known zone. It's all brand new stuff. The interesting thing is there's no outcrop here, so again, we're drilling blind." He pointed out that several years ago, Golden Cariboo went down with an excavator, and "the surface of this area was running as high as five grams in certain areas."

So far, the company has been "absolutely ecstatic at the results."

After Golden Cariboo completes its 2024 exploration work, it intends to prepare an NI 43-101 compliant resource estimate on the project.

Stock Offers 105% Return Potential

Couloir Capital's Wortel, in his research report mentioned above, highlighted project location, exploration upside and strong management as some of the key aspects of the Golden Cariboo story.

He recommended the company as a Buy "for exposure to gold resource discovery in a Tier 1 jurisdiction as the market delivers record gold prices," he wrote.

His fair value price on Golden Cariboo implies a 105% return for investors.

*John Newell also gave Golden Cariboo a Buy rating in his September 6 contributor opinion piece titled "The Best Place To Find Gold Is in the Shadow of a Head Frame Contributed Opinion." 

Ownership 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.