Expert: Pick the Right Stocks as Gold Cos. 'Catch Up' to Gold Prices

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.
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* 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, $2,500.
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.

The gold market's steady rise pulled back a bit on Tuesday, but it seems most analysts agree it is still in the early stages of a bull market. The price was US$2,615.25 per ounce on Tuesday afternoon after hitting a record high of US$2,685.42 last month.

Goldman Sachs on raised its forecast for gold in early 2025 to US$2,900 from the previous US$2,700, Investing.com reported, and many other analysts say US$3,000 is not out of the realm of possibility.

But there is a disconnect right now between the commodity price and the price of gold companies and explorers, said John Feneck, a consultant to Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE), which is drilling in the area of the historic Cariboo Gold District in British Columbia.

Gold stocks need to "catch up," Feneck told Streetwise Reports, and "they always do."

"My guidance with my own clients is you have to be patient," he said. "You've got to build a position now and hold it for one to three years, and as gold continues to remain elevated or even higher, you're going to benefit."

Feneck has more than 30 years' experience in finance, including at Merrill Lynch Funds (now Blackrock), and is a regular contributor to Kitco. You can check his track record investing in mining companies here.

Feneck said prospective investors should look for "larger deposits" with people at the helm who have a good relationship with their field team, like Golden Cariboo President and Chief Executive Officer Frank Callaghan.

Also important is jurisdiction, and with mining going back to 1865, millions worth of placer gold mined from a creek at the site, and Osisko Development Corp. (ODV:TSX.V) on three sides, Golden Cariboo's Quesnelle Gold Quartz Mine property in British Columbia ticks all of the boxes, he said.

Callaghan has done it before, too. He was CEO of Barkerville Gold Mines before it was acquired by Osisko for CA$330 million.

"That part of Canada is an active mining area, where Frank has already enjoyed success," Feneck said.

There Could Be a 'Large System Here'

Golden Cariboo announced this week that drilling at the Halo Zone of Quesnelle intersected 85.83 meters at 0.55 grams per tonne gold (g/t Au) from surface, including 17.06 meters of 1.75 g/t Au, representing continuity of the surface gold mineralization.

The company said the Halo discovery, along with core data and field data analysis, indicated "the mineralized veins are subvertical to vertical and are striking to the northeast oblique to observed lithological contacts that strike northwest, three phases of deformation are observed in outcrop, and later faulting appears to be an important conduit for gold mineralization," the release said.

"Drilling in the Halo zone has resumed to follow up on our fantastic results to date," Callaghan said in the release. "Now we have a targeted and systematic drill program ongoing that will further define the Halo zone and beyond. We have enormous gold intercepts and we’re combining drill, geophysical and field data to vector in on further mineralization with bulk-tonnage mining potential."

The company is further exploring whether there are three separate zones (Halo, North Hixon, and Main) or of it is continuous to the Main zone, with the North Hixon zone on a parallel trend.

The new drill hole, QGQ24-15, tested a steeper angle (-65 degrees) than drill hole QGQ24-14 (-48 degrees), was drilled in the same orientation (282 degrees), with QGQ24-15 ending at a vertical depth of 140 meters, the company said. The mineralization in drill hole QGQ24-15 was present down to a vertical depth of 79 meters.

The possible continuity "could indicate that they could be onto a large system here," Feneck said, latching on to Callaghan's description of "enormous."

"I think that indicates that they're on to something good here," Feneck said.

Looking Toward the Next Steps

The company announced earlier this month that assays had confirmed a significant extension at Halo and an increase in grade.

Drill hole QGQ24-13 intersected 136.51 meters of 1.77 g/t Au, including 23.89 meters near surface of 3.32 g/t Au, with a higher-grade section of 5.17 meters of 13.74 g/t Au. These upgraded intercepts were the result of selective metallic screening assays, which replaced the initial fire assay results and increased gold values by 21%.

Golden Cariboo's exploration strategy targets high-grade gold mineralization across multiple zones and bulk tonnage mining potential. As detailed in the company's investor profile, it is focused on leveraging its 100% ownership of the property, which spans 3,814 hectares in the historic Cariboo Mining District.

Phase 2 of the company's drill program is anticipated to include up to 5,000 meters of drilling, as well as trenching and mapping to further define mineralized zones. The company expects that continued positive results from the drilling program will lead to a new National Instrument 43-101 resource estimate.

Expert: 'Investors Should Keep a Close Eye'

John Newell of Newell & Associates on September 6* reiterated the strong potential of the company, emphasizing stating that the broad intersections from the Halo zone, located just 830 meters from the historic Quesnelle Gold Quartz Mine, hint at the possibility of uncovering a major deposit.

According to Newell, these results position Golden Cariboo to capitalize on further exploration in one of British Columbia's most prolific gold districts.

Like Feneck, Newell highlighted the company's strategic advantage, noting that its proximity to Osisko Development Corp. enhances its value as a potential acquisition target. The company's management, with a track record of developing successful projects, continues to drive exploration efforts in this historically rich mining region, he said.

Additionally, Newell commented that Golden Cariboo's ability to intersect mineralization consistently demonstrates its potential for growth, suggesting that "investors should keep a close eye on this junior exploration stock as it advances its exploration program."

Ownership and Share Structure

According to the company, 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 81.48%. There are no institutional investors.

According to Golden Cariboo, it has 50.3 million shares outstanding, 24.83 million warrants, and 3.8 million options.

Its market cap is CA$9.06 million. Over the past 52 weeks, Golden Cariboo has traded between CA$0.08 and CA$0.36 per share.