Sector: Mining - Metals and Minerals :
News Release - October 28, 2016 4:18 PM ET
New Carolin Gold Corp. Issued Significant Upside Market Valuation In Research Report, Advancing Past-Producer with Multi-Million Oz Gold Potential 150km East of Vancouver
YORK, NY, October 28, 2016 /Sector Newswire/ --
New Carolin Gold Corp. (TSX VENTURE: LAD) (OTC: LADFF)
(Frankfurt: 29N) is identified in a newly issued research report
by Market Equities Research Group with several potential catalysts
that exist near-term with potential to result in $100 million market
cap (50 cents /share) for LAD. New Carolin Gold Corp.’s 100%-owned Ladner Gold Project
is located only 150 km (2 hours) East of Vancouver, BC, Canada, in
the Coquihalla Gold Belt. With LAD currently trading at a market cap
of ~$11.7 million and potential to show a 1+ million oz. resource in
2017, combined with the many project advantages, we see strong
potential for a rapidly increase in valuation for LAD based on a $ /
oz basis to form a solid core value for LAD in 2017.
The large, 144 sq. km land package is host to 5 previous gold mines and 30 known high grade gold zones.
FINANCIAL POTENTIAL / VALUATION
The Ladner Gold Project, as it now stands, is clearly an excellent example of exploration “leverage”, whereby the vast amount of past work, combined with the very advanced permitting / infrastructure stage, may well facilitate a very fast track to production.
The capex to set up a mine is probably 30 cents on the dollar because of all the assets that are there right now, this is NOT YET factored into the share price, however it will add tremendous value when a mining situation is clearer to the market. The fact is there already is a mining situation there now, as described above, the Company just can’t talk about it yet. The tens of millions in value related infrastructure, assets, permits, and improvements (access to multiple zones) is not yet factored into the share price.
In this context, assuming LAD is successful in confirming historical resource estimates, we could see the stock trading in the $50+ per ounce range (i.e. $35+ million market cap), and increasing to $100 / oz following a positive economic study (i.e. $70m+ market cap). Should LAD be successful in increasing resources beyond the historical estimate (i.e. the Western High-Grade Zone to the west at the fault, also to the north along trend), these values would of course increase. That is based just on the gold, factor in the above mentioned assets, permits, and infrastructure and a 12 month price target for shares of LAD reaching 50 cents (~$100M market cap, assuming ~30M additional dilution of shares outstanding (to capitalize exploration goals)) appears readily achievable. This is based on current gold prices, higher gold prices would dictate a revision upwards.
In addition to this, we also see clear potential for multi-million ounce discoveries in the future which would have a marked impact on the stock when the company turns its attention to exploring for this potential.
At the origin of something potentially massive; 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. The geological model and local structures at LAD are comparable to Bralorne (4M oz) & Motherlode (7 million oz producer) mining camps.
End Game for 2017
LAD clearly has several milestones to reach in 2017, each of which should add to the market cap of the company and increased stock prices:
• confirm the historical resource estimate,
• expand the resource with additional drilling,
• re-model the resource and complete a new 43-101 resource estimate, and
• begin to demonstrate positive economics.
The full research report with chart, graphics, and analysis of value drivers may be found at http://sectornewswire.com/MarketEquitiesResearch-LAD-2016-Q4.pdf online.
SOURCE: Sector Newswire editorial