Evaluating A Junior. The More Pluses, The Better
It doesn't take a brain surgeon to know that mining and metals markets have been in a funk for the last 3-4 years. Ever since gold topped out it's been pretty much a downhill slide. As this year comes to an end one can see from various charts that the bulk of active players in the gold mining plays have been stagnant and trading has been mostly sideways with low trading volumes. This sideways trading for the most part has seen stock prices at the yearly lows also.
Worldwide today here are over 2,000 listed junior mining companies so if you are wanting to invest in any of these companies you want to find ones that have a lot of pluses going for it. The more plus or postives, the better. Reason being is a lot of these comapnies have nothing but a few mineral claims scattered about and are probably not even worth the 1 cent price they are trading at. There are other juniors that have reinvented themselves as tech companies, biotech or became pot growing companies. However, there are some junior miners out there are staying in the mining and exploration game because they have good solid projects on the go that are viable and are still very much active in building up a shareholder value along with a community value. Today we are going to take a look at one company that has the goods, the management to make things happen and has support from local communities and governments.
New Carolin Gold Corp. LAD is the company we are going to look at today. New Carolin Gold is a Vancouver BC based company that is building the Ladner Gold Project. This project has a lot of pluses going for it at the moment and really deserves some attention.
First plus: First off is the location of the project. The Ladner Gold project is located in the Coquihalla Gold Belt which is about 150KM from Vancouver BC. The origianl Carolin Mine is located just 6 KM from the Coquihalla Highway or about 18 KM from the town of Hope BC.
Second plus: A lot of the infrastructure from when the original Carolin Mine was in operation is still there. There is a ball mill, rod mill, regrind mill, coarse ore bin, and an underground crusher.
Third plus: With two completed NI 43-101 gold resource estimate studies on both the Carolin and McMaster Zone they have discovered an Inferred Mineral Resource estimate is 607,000 oz gold at the Carolin and an Inferred Mineral Resource estimate of 79,540 oz gold at the McMaster zone.
Fourth plus: Permits in place. Permits for both underground and surface. Current water license is also in place.
Fifth plus: The Ladner Gold project comes with not only the original Carolin Mine but there are two other mines on the 144 square KM of property. There is the Emanciaption Mine and the Pipestem Mine which are both past producers.
From a historical point, the property has been producing gold since 1890 and there are numerous high-grade artisan workings along the fault line that runs the length of the 28 km-long property, mostly they were chasing very high-grade surface showings, some up to 120 - 130 oz/tonne. Meaningful exploration and development of the property started in 1975 with a mining company that drilled out the Carolin Ladner Gold Project and put it into production in 1982 and unfortunately gold prices were uncooperative; when they drilled they were at near-$800/oz gold and when they got the mine into production gold was at $400/oz
Another huge plus with this project is the tailings ponds. Not only are they in place and get inspected every year by an engineering firm, but the tailings are loaded with traces of gold. How much gold? Well, 69 holes were drilled into 60% of the tailings establishing a resource of 404,000 tonnes which indicated a grading of 1.83 g/t +/- 24,000 contained oz gold and 84,400 tonnes Inferred grading 1.85 g/t +/-5,000 oz gold. So you could logically calculate that there is probably give or take 40,000 ounces of gold in the tailings pond alone since only 60% of the area was drilled.
At present the company has 75 million shares. This translates to a market cap of 3.7 million. The 52 week trading range for the stock has been a low of 2 cents and a high of 8 cents. From an investor point of view on this company, it just so happens that world renown mining and metals analyst, Jay Taylor is following this company as well. His thoughts on New Carolin Gold? "New Carolin presents exceptional risk/reward at its Ladner Gold Project, 2 hours East of Vancouver, BC, as it advances to take historic resource compliant, prove major new gold zone and world class multi-million ounce potential."
I am going to continue following the progress of this company as there should be news in the very near future. You can read up on a lot more by going to their website here.
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