Cassiar Gold Corp. (GLDC:TSX.V; CGLCF:OTCQX; 756:FRA) released an updated mineral resource estimate (MRE) for the Taurus deposit at its Cassiar gold project in it British Columbia, and it reflects 61% more total tons than the previous 2022 version, reported Alina Islam, mining analyst with Red Cloud Securities, in a June 13 research note. Having recently assumed coverage of GLDC, Islam rated it Buy and assigned it a CA$0.75 per share target price.
"We view this update positively as the company continues to grow its Taurus resource," Islam wrote. "We believe further resource growth could justify the economic case for its development in the future."
159% Uplift Implied
Compared to the CA$0.75 per share target, Cassiar Gold was trading at the time of Islam's report at about CA$0.29 per share, noted the analyst. From this price, the return to target is 159%.
"We believe further resource growth could help re-rate the stock," Islam wrote.
The Canadian mineral acquisition and exploration company has 128.7 million shares outstanding. Its market cap is CA$37.3 million (CA$37.3M). Its 52-week range is CA$0.18–0.37 per share.
Specifics of Updated Resource
Islam reported the details of the new MRE for Taurus, part of Cassiar North, and how it compares to the previous one. The updated version outlines pit-constrained Indicated and Inferred resources (versus only Inferred previously) and is based on 31,327 meters (31,327m) of drilling done at Taurus since the 2022 MRE.
"The maiden Indicated resource confirms the continuity of this bulk tonnage deposit," Islam wrote.
Taurus' new Indicated resource is 8,800,000 tons (8.8 Mt) of 1.43 grams per ton gold (1.43 g/t Au) containing 401,000 ounces Au. The Inferred resource is 63.15 Mt of 0.95 g/t Au containing 1,930,000 ounces (1.93 Moz) Au. Both reflect a 0.4 g/t Au cutoff.
"We value the 2.34 Moz Taurus resource at an in situ multiple of US$40 per ounce to arrive at our net asset value of CA$130M (CA$0.73 per share)," Islam wrote.
The 2022 MRE was 44.6 Mt of 1.03 g/t Au containing 1.48 Moz of Au. In comparison, the overall resource in the update is 71.95 Mt of 1.01 g/t Au containing 2.34 Moz of Au. The update reflects a 61% increase in tons, a 58% increase in contained gold and a 2% decrease in grade.
Further Growth Potential
The Taurus resource remains open for expansion, Islam highlighted. For one, the new pit shell extends from surface to a depth of 307m. More of the resource occurs closer to surface (48% down to 50m) than further from surface (23% between 51m and 100m down).
Two, the Taurus deposit accounts for only 0.3% of the 59,000-hectare Cassiar property. There are multiple other targets at the project that could be drill tested in the future. Those near Taurus include Newcoast, Lucky and Snow Creek. Additionally, there is Cassiar South, a past-producing high-grade, quartz vein deposit. The 10,000m of drilling done there between 2021 and 2023 identified potential for extension along strike and downdip of known vein systems. It also indicated potential for parallel and stacked vein systems.
Highly Developable Project
Along with an expanding resource, Taurus and Cassiar North boast well-established nearby infrastructure, noted Islam, which bodes well for future project development. There is a permanent camp with power and water access, Highway 37 running through the property and open year-round, an airstrip about 5 kilometers away and a mill permitted to process 300 tons per day in the vicinity.
On the Horizon
As for upcoming catalysts, according to Islam, they include results of follow-up drilling at Cassiar North and Cassiar South, expected this year, as well as exploration updates from other prospective targets, anticipated this year and next.
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Disclosures for Red Cloud Securities, Cassiar Gold Corp., June 13, 2025
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