Explorer Hits 'Broad, Continuous' Gold Zone in Cariboo District

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Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced drilling results from its Quesnelle Quartz Mine in British Columbia's Cariboo Gold District that it said represented "strong widths and continuity of gold mineralization" within its Halo zone discovery.

Hole QGQ24-16 intersected 275.31 meters of 0.53 grams per tonne Au (g/t Au) from a depth of 39.01 meters, including 50.99 meters of 1.28 g/t Au from 39.01 meters depth, the company said.

“With each drill hole we are hitting large intercepts of a broad and continuous gold zone," President and Chief Executive Officer Frank Callaghan said. "These grades and widths are not unlike those seen in many producing gold mines globally, let alone being located near surface and just 4 kilometers away from a community, railway, and major highway in north-central British Columbia.”

Golden Cariboo, a Canadian explorer-developer, is targeting a potential multimillion-ounce gold resource at the 3,814-hectare Quesnelle project, where gold, silver, lead, and zinc were produced historically, according to its Investor Presentation.

Hole QGQ24-16 was designed to "intersect the northeast trending mineralized quartz-carbonate+/-pyrite veins at a perpendicular angle, which are oblique to observed northwest trending lithological contacts and the mineralized zone," Golden Cariboo said in a release. "Several generations and types of quartz and quartz-carbonate veins are observed within the mineralized zone, and gold mineralization is associated with a carbonate-sericite bleaching alteration of intermediate to mafic volcanic host rocks."

Golden Cariboo said it now intends to define the Halo discovery by drilling a series of holes trending north, a direction amenable to both intersecting northeast-trending mineralized veins and the northwest-trending mineralized zone.

Looking to Repeat Success

Callaghan began rediscovering the Cariboo Camp in the mid-1990s as Barkerville Gold Mines Ltd. He and his then team discovered a gold deposit at Bonanza Ledge and advanced the project to production. He also assembled and developed the Cariboo Gold Project. Ultimately, Osisko Royalties acquired Barkerville and the assets in 2015 for US$338 million. Osisko is about to restart mining operations in the camp.

Subsequently, in 2019, Callaghan acquired the Quesnelle Gold Quartz project, where he aims to repeat his previous successes, given the property's geology is similar to that of the other two projects.

Callaghan said there has been excitement at the camp during the current drilling as they continue to find mineralization and visible gold in drill cores.

The company's neighbors in the mining district include Osisko's Cariboo Gold Project, Spanish Mountain Gold Ltd.'s (SPA:TSX.V) Spanish Mountain deposit, Omineca Mining and Metals Ltd.'s (OMM:TSX.V; OMMSF:OTCMKTS) Wingdam mine, and Taseko Mines Ltd.'s (TKO:TSX; TGB:NYSE.MKT) Gibraltar mine.

The Washburn Lateral

Earlier this month, the company announced it had acquired a district lot adjacent to Quesnelle. The Washburn Lateral is a 20-hectare claim immediately northeast of the historic mine and contains the undersurface mineral rights to the claim area, the company said.

"Acquiring the Washburn Lateral is an important milestone for the company, providing us with a key parcel of land within our multi-kilometer gold trend on our property," Callaghan said at the time. "With this district lot now in hand, the company is able to test our gold trend to the southeast from our discovery made in the North Hixon Zone earlier this year."

Once owned by the Quesnelle Quartz Mining Company Ltd., the lot was originally located in 1913 and has seen little exploration and "has remained virtually untested by drilling," Golden Cariboo said.

Previously, the company reported observing multiple instances of visible gold in several holes.

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

Near-term catalysts for the company include more drill and assay results demonstrating significant grades or widths and better-defined mineralization controls and trends, according to Wortel.

The Catalyst: Gold Rallies After Post-Election Dip

After dipping to a two-month low after the U.S. election, gold prices have started climbing again "as investors sought refuge in the safe-haven metal amid mounting geopolitical unease fueled by escalating Russia-Ukraine tensions," Reuters reported Wednesday.

Spot gold was up 0.6% at US$2,647.43 per ounce after hitting its highest level since Nov. 11 earlier in the session, Reuters said. U.S. gold futures settled 0.8% higher at US$2,651.70.

After setting new record highs, gold prices took a breather, but most experts agree its current bull market is not disappearing. 

Ian Salisbury wrote for Barron's that "most of the arguments gold bulls make — and have been making throughout 2024 — look stronger after Trump's win."

"We are still relatively constructive on gold," said Taylor Krystkowiak, investment strategist at Themes ETFs, according to Salisbury's report. "Why does gold go up? It's geopolitical uncertainty, it's deficit spending, and it's inflation. Right now, all those stars are aligned."

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$11.46 million. Over the past 52 weeks, Golden Cariboo has traded between CA$0.08 and CA$0.36 per share.