Gold Miner Breaks Ground on Critical Road to High-Grade BC Gold Project

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Cambria Gold Mines Inc. (CAMB:TSX.V; CAMVF:OTCQX) announced the start of construction on a 23-kilometer access road crucial to transport mineralized material from the Red Mountain project to Cambria's mill, which processes 2,500 tonnes per day and is located at the Premier Mine, according to a June 1 release.

The Premier Gold Project boasts several advantageous features including paved road access, a mill with significant daily processing capacity, grid-connected hydroelectric power, and proximity to a deep-water port. The project encompasses multiple deposits such as Premier, Silver Coin, Big Missouri, Dilworth, and Martha Ellen.

Red Mountain, known for its high-grade underground gold, is situated about 15 kilometers northeast of Stewart, British Columbia, within the Nisga'a Nation Treaty Lands in BC's renowned Golden Triangle. Cambria Gold Mines, formerly Ascot Resources Ltd., began trading under its new name and ticker on February 13.

The company said it faces a challenging four-month period to complete the necessary permitting and engineering work to green-light the construction of the access road that crosses indigenous territories.

Both the Premier and Red Mountain projects are located on Nisga'a Nation Treaty Lands. Rob McLeod, the president and chief executive officer of Cambria, has a deep familial and professional connection with the Nisga'a Nation. His father, Ian McLeod, was involved in the political campaigns in the 1940s of Dr. Frank Calder, the first Indigenous person to hold elected office in any provincial legislature in Canada.

In a conversation with Guy Bennett, the CEO of Global Stocks News, Rob McLeod expressed his longstanding relationship with Eva Clayton, the President of the Nisga'a Nation.

"The Nisga'a are supportive of our goal to turn both the Premier and Red Mountain assets into producing mines," McLeod said. "There is a level of trust between us that helps expedite permitting and decision-making."

Phase 1 Details

Phase 1 of the project undertaken by Cambria Gold Mines involves reconstructing a 13-kilometer section of an old roadbed, originally established in 1910 as a wagon trail for accessing placer gold mines along Bitter Creek, the release said. This road was later extended to the base of Red Mountain at Bromley Humps by Lac Minerals in 1994. Starting from the paved Highway 37A just north of Stewart, this road will facilitate the transportation of mineralized material to Cambria's mill at the Premier Mine, which processes 2,500 tonnes per day, covering a total trucking distance of approximately 50 kilometers.

Cambria's Red Mountain Gold Deposit is notable for its substantial resources, including Measured and Indicated Resources totaling 3.19 million tonnes with an average of 7.63 grams per tonne gold (g/t Au) and 21.02 g/t silver (Ag), amounting to 783,000 ounces of gold and 2,156,000 ounces of silver. Additionally, the deposit contains Inferred Resources of 405,000 tonnes at 5.32 g/t Au and 7.33 g/t Ag, which equates to 69,000 ounces of gold and 96,000 ounces of silver, the company said.

The deposit, characterized by its minimal need for infill drilling, includes 544,000 ounces of gold in the Measured category at an impressive average grade of 8.81 g/t Au. It features over 2,000 meters of production-size underground workings and is well-suited for bulk underground mining methods such as longhole stoping.

The construction of the initial road sections will be managed by contractor West Point Rail and Timber Co., with engineering support from Fortec Consulting and Onsite Engineering, and environmental monitoring conducted by Nisga'a Growth Corp. Cambria's Director of Construction, Nick Stoneberger, is set to oversee the project, with additional contractors and consultants expected to join as the road construction progresses.

McLeod, speaking to GSN, emphasized the strategic importance of the Red Mountain project, noting its potential to support high-margin operations due to its wide ore body.

"We believe it can produce the tonnes required to meet the capacity of the 2,500 tonne per day mill at Premier," he said. "We anticipate blending high-grade Red Mountain mineralization (75%) with bulk tonnage mineralization from Premier (25%). To achieve this goal, we need an efficient, cost-effective transportation corridor from Red Mountain to the Premier mill. That is why we are prioritizing the construction of this access road."

He outlined plans to blend 75% high-grade Red Mountain mineralization with 25% bulk tonnage mineralization from Premier to fully utilize the mill's capacity. The construction of an efficient and cost-effective access road from Red Mountain to the Premier mill is a priority to facilitate this plan.

McLeod also highlighted the extensive environmental considerations involved in the road construction, particularly in partnership with the Nisga'a Nation, according to the release. The road's proximity to Bitter Creek, which is primarily fed by glacier rock flour and hosts a sparse population of Dolly Varden trout, requires careful management to prevent potential negative impacts from severe weather events. As part of the environmental mitigation efforts, Cambria is engaged in a "fish offset" project to enhance salmon habitats in the Bear River Valley, which involves structural modifications to the creeks to protect salmon from predators during spawning.

Additionally, Cambria has implemented a goat management plan to minimize disturbances to wild goats during their birthing season, restricting helicopter activity above certain elevations. Consultations with local indigenous communities, including an old family friend who operates a trap line near the access road, ensure that mining activities do not threaten local livelihoods. McLeod concluded by emphasizing the cultural, environmental, and economic significance of local wildlife and the value of having the Nisga'a as partners in enhancing the company's development and exploration initiatives.

Updated Feasibility Study By Q4

According to a piece by Shane Lasley for North of 60 Mining News on June 2, Cambria plans to have the 13-kilometer road to the base of Red Mountain completed by the end of the 2026 construction season in Northern B.C.

As construction of the Red Mountain road progresses, Cambria is carrying out resource upgrade drilling at Premier-Northern Lights, Big Missouri, and Silver Coin deposits on the Premier property.

"We are on track to complete an updated feasibility study incorporating all four deposits by Q4 2026," said McLeod, according to Lasley.

Cambria recently strengthened its team by hiring two new professionals to advance its Mt. Margaret copper-gold project in Washington State, according to a report by Jay Lutz for thedeepdive.ca on June 3. David Thomas has been appointed as the vice president of projects (USA), where he will oversee project development including engineering, permitting, and regulatory strategies. Should Cambria proceed with its plan to spin out the Mt. Margaret project into a separate entity, Thomas is expected to take on the role of chief project officer.

He brings over four decades of experience in the resource sector, having held senior positions such as president, executive vice president, and chief operating officer in companies like Newmont Mining and Nordgold. His extensive background covers the entire mining value chain across various minerals including copper, gold, and silver.

Joining him is Orla Abrahams, who will serve as the community relations coordinator (USA), Lutz said. Abrahams will focus on community relations, stakeholder engagement, workforce development, and public communications related to the project. With over 10 years of experience in the mining, engineering, and professional services sectors across Europe, Africa, and North America, her role at Mt. Margaret will primarily involve fostering relationships with local communities, Indigenous groups, educational institutions, regional partners, and government agencies.

The CEO McLeod expressed confidence in the new hires, noting that their strong technical backgrounds and experience in mine development and community engagement are well-suited for advancing the large copper-gold porphyry deposit in the United States.

Lutz noted that the appointments are part of Cambria's strategic plan announced in April, which included the company's intention to spin off the Mt. Margaret project into a separate, U.S.-focused listed company. This plan was accompanied by the staking of approximately seven square kilometers of additional claims around its patented federal claims, held in partnership with the U.S. Bureau of Land Management.

The Mt. Margaret project is recognized as one of the significant undeveloped copper deposits in the United States, with mineralization starting at the surface. A pre-NI 43-101 historic resource estimate suggests the presence of 577 million tonnes of resources, containing 0.36% copper, 0.24 g/t gold, 0.011% molybdenum, and 1.58 g/t silver.

According to Investing.com, four analysts have ratings on the stock, including three Buys and one Hold, with an average price target of CA$2.43, a more than 100% upside at the time of writing.

The Catalyst: Gold Drops, But Experts Say More Fireworks to Come

Gold and silver prices experienced a significant drop on Friday following the release of unexpectedly strong U.S. jobs data, which surpassed analyst predictions, according to a report by BullionVault on June 5. This robust employment growth has heightened expectations that the Federal Reserve, now led by Trump appointee Kevin Warsh, might increase interest rates instead of lowering them, despite ongoing inflationary pressures from the Iran war's impact on oil prices.

Although oil prices dipped Friday, Brent crude still recorded a weekly increase of 3.9% on the ICE derivatives exchange for August futures.

In contrast to oil, the price of London gold bullion fell sharply, losing 3.9% from the previous Friday's close, which translates to a drop of over US$100 per troy ounce. This decline was largely driven by the strong U.S. employment data, pushing gold to its lowest London 3 p.m. auction price since the start of the year. The reaction in the financial markets has been swift, with traders in CME interest-rate futures now seeing a November rate hike by the Fed as a 50-50 possibility. Consequently, the market's consensus on year-end interest rates has climbed to 3.87%, marking the highest forecast since a mid-March spike pushed rates towards 4.00% and resulted in gold's fastest fall since the 2013 crash.

Gold's current trajectory is reminiscent of its behavior in 2006, suggesting that a potential low of around US$4,000 could be reached by July, according to A.G. Thorson writing for FX Empire on June 5.

Following this anticipated dip, gold prices are expected to rebound and continue their upward trend, potentially reaching US$7,500 sometime next year, Thorson said.

Looking further ahead, an extended analysis indicates that the ongoing bull market in gold could persist for approximately five more years, with gold prices possibly climbing to US$14,000 by the year 2031. This projection comes after observing the metals and mining stocks, which are currently undergoing a consolidation phase following their significant gains in 2025. Such consolidation is typical in robust bull markets.

Thorson said his analysis also points to a likely brief downturn in July before the market's broader upward trends resume. During this remaining period of the bull market, which is projected to last until 2031, gold and silver miners are expected to present the most substantial upside potential.

Ownership and Share Structure¹

About 13% of the company is held by insiders and management, about 20% is held by strategic investors, and about 11% by institutions. The rest is retail.

Top shareholders include Ccori Apu S.A.C. with 20.3%, Franklin Advisers Inc. with 10.66%, De Sologuren with 8.95%, the CEO McLeod with 1.64%, and Ryan William Weymark with 1.35%.

Its market cap is CA$463.63 million with 343.81 million shares outstanding. It trades in a 52-week range of CA$0.60 and CA$3.05.