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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

  

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Q4 2016 Report, $.50/share target

NEW 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 full research report may be found at http://sectornewswire.com/MarketEquitiesResearch-LAD-2016-Q4.pdf online.

 

The large, 144 sq. km land package is host to 5 previous gold mines and 30 known high grade gold zones.

  • Near-term goals of proving up the historic 728,429 oz. Au high grade underground resource, expand that resource (i.e. to the north), & demonstrate the potential from the distinct Western High Grade Gold Zone discovery to the west at the fault.  Meeting these goals is expected to establish a strong core value for LAD in 2017.

  • Medium-term goal to demonstrate district scale multi-million oz gold potential along the 3km trend from the Carolin Mine to NW of the McMaster Zone, similar to the Bralorne (4M oz) / Motherlode Gold (7M oz producer) Districts.

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 database for the Carolin mine now includes over 40,000 metres of diamond drilling with which to facilitate a resource estimate in the short term. The Company has NOT YET been able to use most of this data from a resource/valuation/or promotional perspective, not until the necessary confirmation holes have been performed – ONCE COMPLETE THE PROJECT TAKES A DRAMATIC LEAP IN INHERENT VALUE; In 2009 Century Mining performed an internal estimate of potential quantity; 5 - 5.6 million tonnes grading 4.2 - 4.8 g/t gold at 2.5 g/t cutoff, or between 0.9 - 1.1 million tonnes grading 8 - 9 g/t gold at 5 g/t cutoff – and that is just for starters, there is believed to be much more. See intersection tables on page 14 of this report and note the impressive consistent grades and widths (e.g. 60.53 m of 2.79 g/T, 68.9 m of 2.26 /T, 62.3 m of 4.47 g/T).

  • 10.5 km of underground development to access a defined resource.

  • Tailings pond permits are up to date, the tailings pond is allowed/grandfathered to be raised ~40feet/enlarged (something extremely valuable from a near-term mining perspective), there is ample excess capacity for many years of production as it is, and the tailings pond contains a valuable readily accessible resource in itself (see page 11 of this report).

  • Permits in place from being a past producer.

  • Excellent location and infrastructure profile; just off the highway, 20 minutes from hope BC alleviates the need for a costly mining camp.

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.

  • Highly favorable geology at a district scale,

  • Recent mapping and sampling in 2016 has traced the mineralization and alteration along a trend of approximately 6,000 m, which remains open to extension – this program indicates that a clear relationship exists between the various zones in several areas of the property,

  • The property is clearly unexplored / underexplored – with much of the targeted development zones having been logged (opening up access).

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.

 

 

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. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

 

 

SOURCE: Sector Newswire editorial

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