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.
© 2010 Junior Gold Report
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