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New Carolin Gold–A Golden Pick

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Kal Kotecha PhD

In the fluctuating junior mining sector, there are few corporate characteristics that can help to foreshadow a company’s prolonged success in the market. The variations in the market, both in terms of commodity pricing and confidence investors have for the overall economy, tend to dictate the share prices of junior mining firms.

As I have discussed in previous articles, I believe that one of the most valid signals a company can display to forecast potential success is consistency. A consistent company is one that sets measurable objectives, takes logical steps toward their completion and as a result, reaches their goals in a timely fashion. The Junior Gold Reports looks upon these types of companies with great favour because they are the ones that will improve their share price across the life cycle of the company meaning there will steady and (relatively) predictable returns for investors.

New Carolin Gold Corp. (TSX-V: LAD and OTC: LADFF) (“New Carolin” or “the Company”) is a Canadian junior-stage exploration and brown field development company that has displayed consistency in the development of its 144 square kilometre land claim known as the Ladner Gold Project. The Ladner Gold Project houses 730,000 ounces of inferred gold resources, and is housed in the Coquihalla Gold Belt in southwestern British Columbia, which “is believed to have multimillion-ounce potential” (Taylor, 2015).

We profiled New Carolin Gold Corp. in February of this year (http://juniorgoldreport.com/newcarolingold/) , when at the time the Company was taking advantage of soaring gold prices by acquiring 100% of the Ladner Gold Project property from its previous owner. The acquisition showcased New Carolin’s commitment to the property and its potential as a bluesky gold producer. The acquisition of the property was based on a number of conditions the Company had to meet before the transaction could be finalized. As of March 31st, the TSX Venture Exchange provided conditional acceptance of the acquisition by the Company of remaining interest of the properties held by Century Mining Corporation. This acceptance cleared the Company to close the transaction and effect formal property transfers to take 100% interest and control of the Ladner Gold Project.

With this formalization of the transaction, the company is one step closer to attracting a major gold mining company to purchase the property, a benefit to all shareholders on board for the ride.

More importantly, however, is the Company’s recent completion of an Option agreement with Crucible Resources Ltd. whereby the Company acquired mining claims adjoining the Company’s Ladner Gold Project property – an expansion of New Carolin’s assets. The agreement consists of a total of twenty claims covering an area of 30 sq. km situated in the southern portion of the Project below the Coquihalla Highway.

Three of the new Crucible claims adjoin a prospective new gold zone which has been traced to a length of approximately 1 kilometer, where a sampling program was carried out in the 1980s. From the program, reported soil samples ranged between 20 and 1000 ppm, with one sample of 5900 ppm (close to 6 g/t). Industry standards suggest that gold returns of 20-50 ppm are considered high in soils and this recently optioned zone has wide areas with numerous samples between 100-1000 ppm. The development and production potential of this property is clear and adds significant value to the Company’s position in the market. New Carolin intends to engage Crucible to carry out a new sampling program in 2016 to confirm historic sample locations and assay results, and expand the sampling program on the three new claims with the expectation of extending the gold zone and locating the source.

The Company plans to step up efforts this year and explore lower claim zones where gold on surface is present. These type of holistic study samples will contribute to effective marketing by New Carolin, enabling promotion to investors and directly to majors. As of April 14th, the Company launched a new modernized website, an updated logo and hosts an active Facebook page. This type of progressive marketing from a junior mining brand is relatively unfamiliar to experienced investors in the mining space, and it should absolutely be seen as a proactive response to changing marketing requirements.

In the short-term, the company has the following plans:

  • Updating a 3-D geological model created in the fall of 2014 with detailed geological and structural mapping and surveying of the underground and surface areas. The preliminary 3-D model has provided a more thorough understanding of the Carolin mine gold mineralization and, with the additional work during this program, will provide clear exploration targets for drilling of new areas, as well as within the resource areas.
  • A diamond drill program with specific targets and objectives will follow the first phase of mapping and surveying at the Idaho zone (which includes the Carolin mine and former Aurum mine) and at the McMaster zone, which is 1.2 kilometres northwest of the Carolin mine along the Hozameen fault.
  • The company also plans to undertake exploration work at two of the several additional known mineralized gold zones located on the Ladner gold project.

Looking at New Carolin’s stock performance, there are apparent upward trends that should excite investors interested in both short and long term stakes within the Company.

Over three months, you can see more than a doubling of the stock’s value, moving from $0.04 in late January, to a peak of $0.10 where it currently sits at $0.085. The Company is expanding its property claim and has a planned exploration study to obtain an updated resource estimate. Once this is completed, we expect the stock’s value to improve significantly.

For those cautious investors wondering what kind of growth they can expect from the stock, lets take a look at its historical value over the past year:

In just under one year’s time, this stock has seen 500% growth in value. Expect the stock’s price to grow considerably in coming month’s as the Company works to execute its near term plans and market the results to interested parties.

The Company’s current investors are very confident in the management team’s ability to execute their strategy, as demonstrated by voting results at their recent Annual General Meeting which saw 32 million shares voting in favour of maintaining the team of directors with just 10 thousand voting against. For resource minded investors looking for a clearly undervalued company to make big gains from, we suggest reviewing New Carolin Gold Corp. (TSX-V: LAD) (OTC: LADFF) because we feel it is an excellent candidate due to its bluesky potential property that has already shown expansive inferred resources of 730,000 ounces of gold and has a significant range of land with promising soil samples that indicate solid gold returns.

Disclaimer

© 2010 Junior Gold Report

Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR).  No Guarantee as to Content:  Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

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