Explorer With Premium Gold Discovery in British Columbia Expands Funding

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. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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.

Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE), which became the third-largest claim holder in the historic Cariboo Gold District with recent staking at its Quesnelle Quartz Mine in British Columbia, announced a non-brokered private placement for up to CA$1.95 million.

The placement is for 15 million units at CA$0.13 per unit. Each unit is one common share plus one half of one share purchase warrant.

Two half warrants will equal one full-share purchase warrant, exercisable for a period of three years from the closing date, at exercise prices of CA$0.18 in year one, CA$0.22 in year two, and CA$0.25 in year three, the company said.

Last fall, the company announced a significant expansion of its Halo discovery at Quesnelle and said it had staked 90,898 hectares (ha) of contiguous mineral claims there. The company now holds 95,122 ha at the project.

President and Chief Executive Officer Frank Callaghan said the Halo discovery "redefined the gold potential this far north in the Cariboo," leading the company to secure more than 900 square kilometers of prospective ground over a parallel belt to the discovery and the project.

The new claims cover an area with a similar geological setting to that of Quesnelle, as well as having a history of placer gold production. The company said it has seen limited modern exploration for lode gold.

The private placement is subject to Canadian Securities Exchange approval and all securities are subject to a four-month hold period. The proceeds from this private placement will be used for continued property exploration and for general working capital, Golden Cariboo said.

Multiple Occurrences of Visible Gold

Golden Cariboo is rediscovering the Cariboo Gold Rush with highly targeted drilling and trenching programs on the Quesnelle property, which is almost fully encircled on three of four sides by Osisko Development. Historically, over 101 placer gold creeks on the 90-kilometer trend from the Cariboo Hudson mine north to the Quesnelle Gold Quartz Mine property have recorded production, and successful placer mining continues to this day, the company said.

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.

Quesnelle is road accessible from Hixon in central British Columbia. The project includes the Quesnelle Quartz gold-silver deposit, which was discovered in 1865 in conjunction with placer mining activities. Hixon Creek, which dissects the old workings, is a placer creek which has seen small-scale placer production since the mid 1860s, Golden Cariboo said.

During its exploration, Golden Cariboo has continued to find multiple occurrences of visible gold in its core results from the project.

"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 recent assay results expanding the Halo Zone, Couloir assigned a fair value of CA$0.40 per share to the stock, projecting an upside of 286% from the current share price at the time of the report.

'A Multi-Kilometer Gold System'

The company announced its "significant expansion" of the Halo Zone at the mine last fall, as well.

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," Callaghan said at the time. "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.

The Catalyst: Yellow Metal Booms

Gold surged more than 27% in 2024, its strongest annual gain since 2010, Yahoo! Finance reported. Most experts believe it continues to be in a bull market as we enter the new year. Its price softened a bit on Monday, dipping to US$2,626 per ounce.

"The knee-jerk reaction is picking up speed after headlines emerge that President-elect Donald Trump might consider imposing a universal tariff on critical imported goods," FX Street's Filip Lagaart wrote on Monday.

"From a technical point of view, Gold price is stuck in a pennant chart formation as it respects an ascending and descending trend line," Lagaart wrote. "A breakout could be due at any time, although that is expected a bit later, with buyers and sellers being pushed towards each other."

The price of gold is set to rise further in 2025, say Wall Street analysts, although the pace of gains is likely to slow. Gold is expected to climb to about US$2,795 per troy ounce by the end of the year, according to the average forecast by banks and refiners surveyed by the Financial Times.

"That is about 7% above current levels," the Times' Leslie Hook wrote Thursday. "The yellow metal is expected to continue to benefit from buying by global central banks, which have been diversifying away from the dollar since the U.S. imposed sanctions on Russia following its 2022 full-scale invasion of Ukraine."

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$8.74 million. Over the past 52 weeks, Golden Cariboo has traded between CA$0.08 and CA$0.36 per share.