Testing Process Helps Golden Cariboo Uncover High-Grade Gold in BC

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Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced that the reanalysis of drill hole QGQ24-20 in the Halo zone using PhotonAssay™ technology has successfully confirmed gold intercepts previously analyzed with traditional fire assay methods, resulting in a 5.9% increase in the overall gold grade for the entire hole.

The photon analysis returned 0.56 grams per tonne gold (g/t Au) over the 475.4-meter core length from below the overburden at 7.97 meters, compared to 0.52 g/t Au from the fire assay, the company noted in a release.

The Halo zone is located on Golden Cariboo's Quesnelle Gold Quartz Mine property, approximately 4 kilometers northeast of Hixon in central British Columbia, Canada.

The photon study also revealed longer intervals of higher grade, such as 4.18 g/t Au over 28.95 meters from 82.05 meters, including 10.48 g/t Au over 8.07 meters from 85.93 meters.

"The reanalysis of QGQ24-20 by PhotonAssay™ not only validates the robustness of our original fire assay intercepts, but also enhances confidence in the presence of coarse, nuggety gold within the Halo zone," said President and Chief Executive Officer Frank Callaghan. "The results reaffirm our geological model and sharpen our focus in advancing exploration. We're very encouraged by the increase in gold grades and look forward to deploying this insight as we move into the next phase of drilling."

Golden Cariboo said interval widths are reported since there is insufficient data to reliably estimate true width.

Findings Validate Fire Assay Results

The PhotonAssay™ testing was conducted by ALS Canada Ltd. on rejects and pulp samples currently in their storage, using 500-gram samples, which is significantly larger than the 50-gram aliquots used in the fire assay method, the company said. Approximately 3% of the samples in the photon study used the fire assay result due to insufficient remaining sample, mostly from lower grade intervals. The larger sample size provides a more comprehensive assessment of gold distribution in coarse gold settings, characteristic of the Halo zone, where nugget effects can impact conventional assay results.

The overall increase in gold grades, particularly through higher grade intervals using the photon method, enhances confidence in the reliability of previous intercepts and suggests that localized high-grade mineralization may be more pronounced than previously reported, Golden Cariboo said.

The company said the findings not only validate the previous fire assay results but also provide compelling evidence of coarse gold mineralization, aiding in the understanding of the geological setting and guiding future exploration efforts centered at the Halo zone, which is central to the 2-kilometer mineralized trend between Buckley Creek to the north and the historical Quesnelle Quartz Mine at Hixon Creek to the south.

Reviving the Cariboo Gold Rush

Headquartered in Vancouver, Golden Cariboo Resources is reviving the Cariboo Gold Rush with its focused drilling and trenching initiatives at Quesnelle. This project includes the quartz gold-silver deposit, discovered in 1865 alongside placer mining activities, which historically produced gold, silver, lead, and zinc. Smaller-scale placer operations have been ongoing at Hixon Creek since the mid-1860s. The company is now exploring multiple high-potential exploration targets throughout the property, as highlighted in its Investor Presentation.

Quesnelle, covering 94,899 hectares, is situated along a favorable corridor near the Spanish and Eureka thrust faults, bordered by Osisko Development Corp. (ODV:TSX.V). Historically, over 101 placer gold creeks on the 90-kilometer trend from the Cariboo Hudson mine north to the Quesnelle property recorded production, and successful placer mining continues in the area today.

In 2024, Golden Cariboo drilled 5,797 meters at Quesnelle, leading to the discovery of the Halo zone with hole QGQ24-13, which revealed 136.51 meters of 1.77 g/t Au near the surface. Subsequent drilling confirmed a large, continuous gold zone, with drill hole QGQ24-14 returning 204.85 meters of 0.8 g/t Au, and drill hole QGQ24-17 showing 452.51 meters of 0.3 g/t Au.

Junior miners, like Golden Cariboo Resources, are beginning to gain momentum, according to Brien Lundin of The Gold Newsletter on June 16. Until recently, despite gold prices reaching record highs, junior miners remained at long-term lows. "We've waited a long time in this new gold bull market for the excitement to trickle down to the junior mining sector," Lundin wrote. "Well, wait no longer...because it's happening now."

He pointed to an uptrend in the S&P/TSX Venture Composite Index (CNDX), which is mostly composed of micro- to small-cap resource stocks.

Region's Remains Unexplored

Technical Analyst Clive Maund shared with Streetwise Reports on May 16 that Golden Cariboo presented "an excellent point" for investors to enter or increase their holdings. He noted that the stock is at a cyclical low, resting on long-term support, and historically, when it reached this price level of CA$0.09 per share over the past 11 years, it has rebounded. As of June 17, the price has dropped even further to CA$0.07.

In a September 2024 research report, Couloir Capital Senior Mining Analyst Ron Wortel highlighted the intriguing aspects of Golden Cariboo's story. He pointed out that Quesnelle's location in the Cariboo Camp is similar to that of Barkerville, a historic hardrock gold mine. The Cariboo Camp features gold along its mining trends for over 175 kilometers, extending about 75 kilometers north of Wells–Barkerville. Despite its potential, the Cariboo region remains relatively underexplored.

"Some compare the camp with its several parallel trends and structures and length to the Abitibi Gold Camp of Ontario and Quebec," Wortel wrote. "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 also noted that drilling at Quesnelle has revealed potential for bulk tonnage targets, and visible gold suggests the possibility of high-grade results from mineralized targets. He emphasized the expertise and experience of the team advancing Quesnelle. "When investing in the highly risky junior mining market, many look to follow well-known names with a track record of success," the analyst wrote. "One may be able to add Frank Callaghan to this list for his success in the Cariboo Camp, and he is starting again where he found his mine. We suggest that the drive and the knowledge are there to generate this success again."

The analyst had a Buy rating on Golden Cariboo, with a price target suggesting a 471% return.

The Catalyst: Gold Gaining Momentum

The gold market has rebounded from its recent lows and is now trading within a relatively stable range as rising consumer prices continue to integrate into the broader economy, according to Neils Christensen for Kitco News on August 12. There have been widespread increases reported across various component indexes, including medical care, airline fares, recreation, household furnishings and operations, and used vehicles. The primary driver of headline inflation has been rising shelter costs, which increased by 0.2% last month.

In response to the inflation data, the gold market gained momentum, moving into positive territory for the day, Christensen noted. Traditionally, higher inflation is viewed as negative for gold, as it could prompt the Federal Reserve to maintain a restrictive monetary policy. However, markets are still largely anticipating a rate cut in September, as weak labor market data continues to overshadow rising consumer prices.

Analysts have pointed out that this creates a favorable environment for gold: higher inflation combined with lower interest rates significantly reduces real yields, decreasing the opportunity cost of holding gold as a non-yielding asset, Christensen explained. Larry Tentarelli, Chief Technical Strategist for Blue Chip Daily Trend Report, observed that although headline inflation rose less than expected last month, it remains elevated and places the U.S. central bank in a difficult position.

"While one data point does not make a trend, two consecutive months of higher 12-month inflation will make it difficult for the Fed to justify a rate cut at their September 17 meeting," he said. "We do not expect a September rate cut unless the jobs market drops off drastically over the next 45 days. If the Fed has to choose between shoring up the labor market or fighting inflation, we believe they will opt to backdrop the labor market."

Garrett Goggin, lead analyst for the Golden Portfolio, emphasized on June 16 that even with the ongoing positive news about gold, gold stocks are still trading significantly below their fair value. For the first time in half a century, gold prices have risen sharply, yet gold stocks have not kept pace. He mentioned a recent report showing that foreign traders are increasingly opting to be paid in their own currencies instead of U.S. dollars. Moreover, foreign investors have been reducing their holdings of U.S. dollars.

Goggin wrote, "That kind of bond destruction is part of the reason why I believe this gold trend is not just an ordinary, short-term uptrend. It's a long-term, widespread sea change in the currency markets."

He also noted that global competitors to the U.S. have been accumulating gold for years, with China likely underreporting its purchases. According to Bloomberg on June 3, Goldman Sachs estimated that central banks worldwide are collectively acquiring about 80 metric tons of gold each month, valued at approximately US$8.5 billion at current prices.

"While the true scale of their buying is shrouded in mystery, nobody expects them to stop," the article stated. "Trade data indicates China accounts for a lot of the purchases, along with other unidentified buyers via Switzerland."

Ownership and Share Structure

According to the company, three insiders own 9.7% of Golden Cariboo. They are president and CEO Frank Callaghan, the largest shareholder overall, with 8.9%, Elaine Callaghan, Andrew Rees and Laurence Smoliak.

The rest is in retail. There are no institutional investors at this time.

The Canadian explorer has 87.89 million outstanding shares and 61.65 million free float traded shares. Its market cap is CA$5.27 million. Its 52-week range is CA$0.06–0.27 per share.