New Carolin Offers a Cheap Call on Gold
New Carolin Gold reports a total 43-101 resource of over 700,000 ounces of gold at a low-grade cutoff. That may not sound like much but they have a market cap of only $5.4 million. Those are cheap ounces at about a $6 per ounce US price.
If I am right and we are on the verge of an explosion in the price of gold, the marginal projects will advance the most. While it’s perfectly true that New Carolin could go to zero, the alternative is that management could drill off more gold and the stock could go a lot higher.
The 144 square km Ladner gold project is fully permitted. Power and water are nearby. They have a tailings pond with the potential for expansion nearby. The 100% owned project sits on a 28km strike begging to be drilled off.
The company recently raised enough money to advance a planned 4000-5000 meter drill program in 2019 intended to add ounces from a newly discovered gold zone from the 2018 drill program and to expand the existing resource.
Drills are in place at Ladner. Underground drilling will start in the February-March timeframe. When the snow clears and after the company can do some preliminary work for the surface targets, drilling will continue there in the June/July time. That pretty much means assays will start to come back in the April/May period and continue to September.
For the first time in years, management is moving forward at Ladner aggressively. There will be a series of announcements and results coming on a regular basis.
Six holes are planned in the Hozameen zone to test the down plunge extension. These will be stepout holes 150 meters from the present resource. They will use 50 meter spacing.
New Carolin Gold is an advertiser. I have participated in the latest PP and as such am biased. Do your own due diligence.
New Carolin Gold Corp