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Sector
NewswireTM
Sector: Mining - Metals and Minerals
:
News Release - February
19, 2016 4:36 PM ET
New Carolin Gold Corp. Approved to Acquire 100% of Ladner
Gold Project from Receiver for Century Mining Corporation (Past
Owner)
NEW
YORK, NY, February 19, 2016 /Sector Newswire/ -
New Carolin Gold Corp. (TSX-V: LAD) (OTC: MDULF)
announced news this last week that it has received approval from
Quebec Superior Court of its arrangements to
acquire 100% of the Ladner Gold Project. The Ladner Gold Project is
located only 150 km East of Vancouver, BC, Canada, in the Coquihalla
Gold Belt. New Carolin's Ladner Gold Project hosts 5 past producing mines and a high-grade
underground historic (non 43-101) resource at the Carolin Mine of
728,429 gold ounces (affirmed by Century Mining's 2009 estimate of
potential quantity: 5+ million tonnes grading 4.2 - 4.8 g/t gold, or
~1 million tonnes grading 8 - 9 g/t gold) -- the Company currently
has an inferred resource on the property in excess of 600,000 ounces
(although lower grade until confirmation drilling is performed) that
it is in the process of improving upon. LAD.V is advancing with
plans to bring this historic gold resource compliant, and also
prove-up the larger multi-million oz high-grade mesothermal Bralorn/Motherlode-type
model potential.
LAD.V's current market capitalization is ~$8 million (~88.7M
shares outstanding X ~9 cents (~123M fully diluted, we estimate
there will be 164,761,213 shares outstanding fully diluted after the
current private placement to close off 100% acquisition is
completed)). Bringing the 2009 estimate of potential quantity into
resource will give LAD.V immediate intrinsic value worth several
times the current market cap. Shares of LAD.V are poised for upside
revaluation as the inherent value and accomplishments are
appreciated by the market, and apt to respond in multiples as gold
retrenches and strengthens.
The Ladner Gold project
is a highly coveted asset, and due to its desirability the property
was essentially in abeyance for several years; despite LAD.V
originally only having 10% ownership (now 40%), LAD.V was the
controlling operator and owned 100% of the salient pieces that made
the property functional to LAD.V alone (mine permit, environmental
bond, roads, water licenses, etc.), the receiver for Century Mining
(60%) and related Tamerlane (30%) held the balance. New Carolin Gold
Corp. is at an improved level of relationship with the receiver for
Century Mining, whom we believe is Deutsche Bank. The improved
relationship will see LAD.V increase its ownership of the Ladner
Gold Project to 100% and enable LAD.V to facilitate the exploration
and development of the Ladner Gold Project. The receiver has
acquiesced and the relationship is cooperative; the transfer of
Tamerlane's interest to LAD.V in September-2015 marks a turn in the
relationship -- LAD.V now owns 40% and the February 3, 2016 news
release confirms there is an agreement in place whereby LAD.V only
needs to provide a nominal amount to Deutsche Bank in return for the
remaining 60%, additionally Deutsche Bank has agreed to allow that
money be applied towards exploration in exchange for 20,000,000
shares (at which time it will become the largest shareholder of
LAD.V -- LAD.V has already advanced a block of shares as part of
this payment). The February 17, 2016 new release confirms the
court has approved the arrangement to proceed. A nominal capex of $1M appears sufficient for LAD.V
to push the project into 1 million - 1.5 million ounces gold with a
mineable grade, this high-impact/low-cost program is facilitated by
the high standard of historical drilling and associated database
(700+ holes, ~50,000 m). There is also potential to prove up a new
major gold zone adjacent the Carolin Mine in the process.
Recent
(February 17, 2016) news from New Carolin Gold Corp.:
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Approval of
Amendments to Acquisition Agreement – Ladner Gold Project
TheNewswire / February 17, 2016 - New Carolin
Gold Corp. (the “Company” or “New Carolin”) (TSXV: LAD)
announces that further to Company’s press release of
February 3, 2016, regarding the acquisition of the remaining
assets held by the receiver of Century Mining Corp, that the
hearing was held February 10, 2016 and the Quebec Superior
Court has since granted the order approving the amendments
to the acquisition agreement entered into with the Receiver
of the assets of Century Mining Corp.
The granting of this order is the final leg in respect to
allowing the Company and the receiver of Century Mining
Corp. to facilitate the completion of the acquisition
process.
....click
here for full copy from source |
Recent
(February 3, 2016) news from New Carolin Gold Corp.:
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New Carolin
Amends Agreement to Acquire 100% of Ladner Gold Project
TheNewswire / February 3, 2016 - New Carolin
Gold Corp. (the “Company” or “New Carolin”) (TSXV: LAD) is
pleased to announce that the Receiver of the assets of
Century Mining Corporation (“CMC”) has agreed, subject to
the authorization of the Superior Court of Quebec, to amend
the acquisition agreement (the “Agreement”) announced by the
Company on August 27, 2014 whereby the Company can purchase
the remaining ownership interests of CMC in the Ladner Gold
Project (the “Project”) in southwestern British Columbia. To
date the Company has acquired 40% of the Project with an
undivided 60% interest remaining with CMC.
The Receiver has now agreed that the amount of the financing
to be completed by the Company as a condition precedent to
the transaction will be reduced to $1,500,000, with $600,000
required to be spent on the exploration and development of
the Project. Of this reduced requirement, the Company has
raised $980,000 to date, leaving a balance of $520,000 to
meet this condition.
With respect to the funding requirement and to secure
additional exploration and working capital, the Company
announces a proposed offering of up to 23,000,000 units in
its capital stock for gross proceeds of up to $1,150,000
(the “Offering”) in a combination of flow-through units (“FT
Unit”) and non-flow-through units (“NFT Unit”). Both FT and
NFT Units are priced at $0.05, and will consist of one
common share and one common share purchase warrant
(“Warrant”). Each Warrant will have a two year term with an
exercise price in year one of $0.07 per share and year two
of $0.08 per share. Common shares delivered as part of the
FT Unit will be designated as flow-through shares (“FT
Share”) pursuant to the Income Tax Act (Canada). The
proceeds from the sale of FT Units will be used to fund
qualified CEE work on the Company’s exploration program at
the Project. Warrants issued, whether with FT or NFT Units,
will not have flow-through attributes nor be exercisable for
common shares with flow-through attributes. Proceeds from
the sale of NFT Units will be used for general working
capital. Finder’s fees may be paid in connection with the
Offering. All securities issued in connection with the
Offering will be subject to a four-month plus one day hold
period from the closing of the Offering.
The original terms of the Agreement provided that the shares
issuable to the Receiver, as consideration for the property
interest being acquired, be limited to up to 20,000,000
shares. As consideration for the Receiver’s agreement to
amend the terms of the Agreement and accelerate closing, the
Company has agreed that the shares issuable to the Receiver
will be, immediately after issue of same (including the
common shares issued under the Financing or in connection
with any other conditions to the transaction outlined in the
Agreement), together with all other shares of the Company
then held by the Receiver, equal to 19.9% of the common
shares of the Company then issued and outstanding.
The Receiver has further agreed to reduce to $400,000 the
Company’s accounts payable and accrued liabilities which it
is required to settle as a condition precedent to the
closing of the transaction. In this regard, the Company has
recently settled over $400,000 in debt.
In addition, the Company has also agreed with the Receiver,
as a condition of closing, to obtain an agreement from one
of the Company’s creditors to amend the terms of a recent
secured loan for $200,000, so that such loan shall not come
due and payable until December 31, 2016. The Company has
secured this agreement.
Other closing conditions include receiving TSX Venture
Exchange approval, in addition to obtaining an order from
the Superior Court of Quebec authorizing such amendments.
The Company has spent the past 3½ years working to complete
this acquisition and looks to re-energize its activities
after having overcome many hurdles and poor market
conditions. Upon acquiring the remaining interests of the
Project, the Company believes the investment community
following it will finally be able to measure and attribute
value in keeping with the Company’s assets. The Company
looks forward to concluding the acquisition process and
executing its plans at the Ladner Gold Project.
About New Carolin Gold Corp.
New Carolin Gold is a Canadian-based junior company focused
on the exploration, evaluation and development of 144 sq.
kms of contiguous mineral claims, collectively known as the
Ladner Gold Project. The Project is located near Hope, BC,
in the prospective and under-explored Coquihalla Gold Belt,
which is host to several historic small gold producers
including the Carolin Mine, Emancipation Mine, Pipestem Mine
and numerous gold prospects. For additional information,
please visit the Company’s website at www.newcarolingold.com
....click
here for full copy from source |
Past
production, development, and exploration on the Ladner Gold Project
The property has been producing gold since 1890, 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 -- 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 and heading the wrong way. The project had terrific
headgrades (near-5 g/T) but the operators were deficient in their
mill set-up and operating skills, attaining only near-30% recoveries
for the first ~3/4 of their operation before upgrades yielding ~60%
recoveries -- this has serendipitously set-up an opportunity for the
current owners of the property as the tailings are richly-laden in
gold and readily exploitable. Athabaska Gold explored and developed
underground in the mid-90's with the intent of blocking-out a solid
mineable grade and released a resource estimate in 1997:
|
Resources |
Tonnes |
Grade g/T |
Ounces |
|
Measured: |
1,124,040 |
4.31 |
155,775 |
|
Indicated: |
1,393,460 |
4.28 |
191,768 |
|
Total M&
Indicated: |
2,517,500 |
4.29 |
347,543 |
|
Inferred: |
2,569,540 |
4.61 |
380,886 |
|
Total/All
Categories: |
|
|
728,429 |
* This
resource estimate pre-dates NI43-101 standards
Figure 1 (right) - Carolin
Mine model derived from current drill hole
database; the blue represents mined out
areas and the red represents gold assays of
minimum 1.0 g/t and higher.
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 |
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Figure 3.
Mineralization/Geological Model
- 5 Historical Mines & 30 known gold showings along
fault.
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Athabaska Gold spent ~$3.5 million proving up
new ounces and defining high-grade areas they could mine, but by the
time they were looking to raise money to put the Carolin back into
production gold was down in the $300 range heading toward $250.
Tamerlane and its sister company Century Mining picked-up the
property to take the Carolin Mine to production but it got
financially spread thin and bogged down elsewhere. LAD.V stepped in
late in the game just prior to the receiver getting involved and got
its foot in the door.
Figure 2. (above)
large potential resource growth between McMaster and Carolin Mine
Ability to add significant ounces: The
Carolin Mine mineralized zone is open in all directions, the
underground workings are dry, and fully accessible. A mine
development map from 1981 shows level 800 being extended north for
1.2 km to the McMaster Zone, this was never performed, however
this area between is highly prospective for additional ounces. Most of the drilling to date on the project has been to
expand existing mining that originated from surface showings
(chasing the known mineralized structure), the project has received
next to nothing (only been drilled sporadically & nominally) for exploration and remains largely untested even in obvious
areas where confidence is high something major geologically has
occurred. The McMaster zone has a heavily discounted current
resource of ~79,540 oz with over half the existing resource at ~2+ g/t and near
surface, but the bigger story is in what the confirmation drilling
on Carolin & McMaster and other new targets will yield; it is theorized the McMaster has the
potential to rival and surpass the historical Carolin figures in
size and grades. All drill holes on the project to date have been
relatively short (nothing more than ~200 m) and all have intersected
gold.
The geological model
and local structures at Ladner Creek are comparable to Bralorne (4M
oz) & Motherlode (7 million oz producer) mining camps:
The Hozameen fault runs along the length of
the Ladner Gold Project: All the mineralized gold zones on New Carolin's
Ladner Gold Project appear to be like streams coming from the fault
to surface; 30 degree-angled
down-dipping stacked zones. High
priority target areas LAD.V has identified are expected to affirm
Ladner Gold Project has similar geological makeup to a high-grade
shale-based mesothermal Bralorn/Motherlode-type model. The theory is
there is a brand new zone running between 1.5 - 3 km that needs to be drilled.
Confirming a new major gold zone will demonstrate multi-million
ounce large-scale exploration potential of the model -- if so, there
could be potential for 10 - 20 million ounces on the property.
Recoveries of up to 94.5% possible:
Metallurgical test work of core taken from the McMaster Zone (DDH
32-09; 3.96 g/t gold over 27.6 m from 32.4 to 60.0 meters) indicates
overall gold recoveries of up to 94.5% possible. Pressure-oxidation
and carbon-in-leach has shown recoveries of 96.3% on floatation
concentrate. Using floatation, pressure oxidation and cyanidation of
the floatation tailings returned overall recoveries of 94.5%.
Tailings resource to be sold/leveraged:
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Figure 5.
Carolin Mine in
production, 1984 |
Figure 6.
Tailings impoundment facility,
drain ~12 feet off and
you could drive a truck onto it. |
Figure 7.
Gold-laden tailings sample |
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The tailings impoundment host a homogenous
resource that is readily accessible and is actively being marketed
for sale to generate capital so Company may advance the Ladner Gold
Project without share dilution. 69 holes were drilled into 60% of
the tailings establishing a resource of 404,000 tonnes Indicated
grading 1.83 g/t (~24,000 contained oz gold) and 84,400 tonnes
Inferred grading 1.85 g/t (~5,000 oz gold). Naturally we can
logically deduce there is probably ~40,000 ounces since only 60% was
drilled. Also we note historical production records show the mine
put through ~85,000 ounces of gold material yet only ever sold ~44,000, so
that leaves 41,000. LAD.V has several options, however the preferred
is to sell the tailings outright to a the 3rd party that will
process it, at current gold prices we estimate this should net in excess of $10 million (after capex & opex) over a 4 year
timeframe -- a discounted sale price now has the potential to
generate between $2 - $3 million to New Carolin Gold Corp.
|
Figure
8.
Gold bar from past production
at Carolin Mine, close to half the gold
contained in material processed at the time
still remains in the tailings awaiting
reprocessing. |
Sector Newswire has
identified the following research links for additional DD on New
Carolin Gold Corp.:
This release may
contain forward-looking statements regarding future events that
involve risk and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual events or results. Articles, excerpts,
commentary and reviews herein are for information purposes and are
not solicitations to buy or sell any of the securities mentioned.
SOURCE: Sector Newswire editorial
editorial@SectorNewswire.com
* The current
Carolin Mine Inferred Mineral Resource is reported, at a 2.0 gpt
gold cutoff grade, as 2,589,000 tonnes grading 3.34 gpt gold
(estimating a total gold resource of 278,000 oz). A second Inferred
Mineral Resource was estimated as well, at a 0.5 gpt gold cut-off
grade, to reflect open pit mining potential. This estimate was
12,132,000 tonnes grading 1.53 gpt gold and containing a total gold
resource of 607,000 oz.
The current McMaster Zone Inferred Mineral Resource is reported at a
0.5 gpt gold cut-off grade to acknowledge itʼs open pit potential.
This estimate was 3,575,000 tonnes grading 0.69 gpt gold and
containing a total gold resource of 79,540 oz.
The current Tailings deposit Indicated Mineral Resource estimate is
reported, at a 1.0 gpt gold cut-off, as 445,000 tons grading 0.053
oz/ton gold and containing 24,000 oz. gold. The current Inferred
Mineral Resource for this deposit, at the same 1.0 gpt gold cut-off,
is 93,000 tons grading 0.053 oz/ton and containing 5,000 oz. gold.
Any reference to
recourses that are "historic (non 43-101)" and any references to
"estimate of potential quantity" are not to be relied upon for
investment purposes; the Historic (non-43-101) Athabasca Gold
resource was 1,124,040 t at 4.31 g/T Measured, 1,393,460 t at 4.28
g/T Indicated, 2,569,540 t at 4.61 g/T Inferred. The Century Mining
2009 estimate of potential quantity is referenced from a May-2015
Technical Report filed on SEDAR.
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