Mining Company Expands Major Gold Discovery in BC

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Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) announced drill results have significantly expanded the Halo zone at its Quesnelle Gold-Quartz Mine in British Columbia.

Drill hole QGQ24-18 intersected 172.6 meters of 0.43 grams per tonne gold (g/t Au) near surface from a depth of 10.4 meters, including intersections containing 26.3 meters of 0.88 g/t Au and 20 meters of 1.17 g/t Au, the company said in a release.

Core recovery in the 26.3-meter interval was only 47%, which could result in overall lower values due to the loss of mineralized soft sulfide-bearing, brecciated, fractured and/or altered intervals, Golden Cariboo said.

The 172.6-meter intersection extends gold mineralization 60 meters from the drill hole QGQ24-13 collar and extends gold mineralization vertically by 125 meters below surface, which returned up to 5.15 g/t Au. A deeper intersection of gold mineralization in QGQ24-18 was also encountered, which returned 19.22 meters of 0.45 g/t Au from 351.66 meters.

"Drill hole QGQ24-18 represents another strong follow up to the discovery made this past summer and reinforces our growing confidence in the Halo zone's potential," said Golden Cariboo President and Chief Executive Officer Frank Callaghan. "The broad intercepts of gold mineralization, shallow overburden cover, shallow topography, and location approximately 4 kilometers from a major highway in central BC demonstrates the exceptional nature of this discovery."

Extending Discovery's Mineralization

QGQ24-18 was the third drill hole completed following the Halo Discovery in holes QGQ24-13 to QGQ24-15, with an objective to extend mineralization and enhance the understanding of the lithological, structural and vein geometries of the discovery, Golden Cariboo said.

QGQ24-19 and QGQ24-20 were drilled in a northerly orientation in approximately 100-meter step-outs to extend the Halo Discovery and have been previously announced to contain broad zones of quartz veining with visible gold, according to the company. Assay results are pending for those holes.

Last month, the company noted its 2024 exploration program identified multiple parallel northwesterly trending zones of mineralization, including "visible gold observed in core and on surface over a horizontal width of at least 600 meters between the North Hixon zone and the western margin of the Halo zone. This extends over a strike length of at least 2 kilometers."

Multiple Occurrences of Visible Gold

The company is rediscovering the Cariboo Gold Rush with highly targeted drilling and trenching programs on the Quesnelle property, which is almost fully encircled on three of four sides by Osisko Development. Historically, over 101 placer gold creeks on the 90-kilometer trend from the Cariboo Hudson mine north to the Quesnelle Gold-Quartz Mine property have recorded production, and successful placer mining continues to this day, the company said.

Couloir Capital assigned a "Buy" recommendation to company's stock, citing Golden Cariboo's exploration initiatives as a unique opportunity for exposure to gold resource discovery in a Tier 1 jurisdiction.

According to the company, some highlights of its exploration at the Main zone of Quesnelle in 2024 included hole QGQ24-05, which was drilled to 321.6 meters and yielded a number of greater than 1 g/t Au intercepts over narrow down-hole intervals, including 0.4-1.4 g/t Au.

"Gold mineralization is open at depth, to the east and along trend to the northwest and southeast, beyond the mapped extents of the historic Quesnelle Quartz Mine workings," the company said.

During its exploration, Golden Cariboo has found multiple occurrences of visible gold in its core results from the project.

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

Couloir Capital assigned a "Buy" recommendation to company's stock, citing Golden Cariboo's exploration initiatives as a unique opportunity for exposure to gold resource discovery in a Tier 1 jurisdiction.

Even before the release of assay results expanding the Halo Zone, Couloir assigned a fair value of CA$0.40 per share to the stock, projecting an upside of 286% from the current share price at the time of the report.

The Catalyst: Yellow Metal Setting New Highs

Gold has set new records this week on the back of escalating trade tensions between the U.S. and China, Anmol Choubey and Swati Verma reported for Reuters on Thursday.

"Gold prices slid 1% on Thursday as the U.S. dollar firmed ahead of a key jobs report, and investors booked profits after bullion recorded consecutive record peaks in the previous five sessions," they reported.

A resilient labor market is fueling economic growth and allowing the Federal Reserve to halt interest rate cuts as it evaluates the inflationary effects of Trump's fiscal, trade, and immigration policies, Choubey and Verma reported.

"In addition to the volatility in general, we still have inflation in the background that's starting to creep up, so gold is responding as a safe haven," said Alex Ebkarian, chief operating officer at Allegiance Gold, according to the Reuters report.

"Gold is on its way for US$2,900, and you have very strong sentiment despite the fact that in the short-term dollar gained strength," he said.

The gold market experienced its best start since 2023 and is on track for another big year, Neils Christensen reported for Kitco.

Eric Strand, founder of the boutique precious metals firm AuAg Funds, said he expects gold prices to surpass US$3,000 an ounce this year, Christensen wrote.

"We predict that gold will break the US$3,000 level during the year and potentially finish even higher, with a realistic target of US$3,300," Strand said.

Ownership and Share Structure

According to Golden Cariboo, management and insiders own 12.2% of the company, and President and Chief Executive Officer Frank Callaghan owns nearly 11%.

Retail investors hold the remaining. There are no institutional investors.

The company said it has 60.3 million shares outstanding, and its market cap is CA$8.43 million. Over the past 52 weeks, Golden Cariboo has traded between CA$0.11 and CA$0.36 per share.