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New Carolin Gold Corp. TSX.V-LAD has acquired an additional 30% ownership
in the Ladner gold project. Previously LAD had a 10% undivided interest in
the property that holds the core asset plus 100% of the lower property that
while on strike does not as yet have a proven asset. The ownership of the
property has been problematic for New Carolin for almost 3 years since
Century mining went into bankruptcy. The market has punished LAD for a lack
of clarity on ownership and specifically for the lack of a direct path to
100% ownership.
The transfer of this additional 30% interest is very significant for LAD
shareholders, not just for the significant upgrade in their percentage
ownership of the assets on the property (roughly an inferred resource of
750,000 oz at 4.5 g/t gold plus 28,000 inferred oz minimum in the tailings))
but also because LAD now has a direct path to delivering on 100% ownership of
the property.
LAD has an agreement in place with the receiver to acquire the 100%
interest by raising $2 million towards developing the project. A key
component of that agreement was the transfer of the 30% interest from
Tamarlane to LAD as the receiver did not directly control that 30%. Now, with
the monies raised to date, plus the $200,000 loan facilitating the 30% transfer,
Lad is just over one million dollars short of the 2 mil required to transact
the further 60%.
Once LAD can claim 100% ownership they will own the roughly 750,000 oz of
inferred gold underground plus the 28,000 + oz in the tailings pond (drilled out
on only 60% of the ponds surface). Based on the company raising the
funds to complete the acquisition of the further 60 % interest they should
have funds allocated for a 2015 drill program. The management of New Carolin
believes that their next drill program will have
very meaningful targets that could further enhance the current
resource.
Will these new developments be enough to put them in play as an
acquisition target or perhaps to be of sufficient interest to financiers
willing to put the property back in production? We don't know but both
prospects certainly exist and make this a very compelling story
going forward.
There’s also considerable discovery upside left on the property.
‘The Coquihalla serpentine belt is an elongate, north - northwest trending,
steeply dipping ultramafic unit. The belt lies within a major crustal
fracture, the Hozameen fault and exceeds 50 kilometers in discontinuous
strike length. The serpentine belt reaches its maximum development in the
Carolin mine-Coquihalla River area, where it is greater than two kilometers
in width. It gradually narrows to the south (Manning Park area) and north
(Boston Bar).’ Exploration in B.C. 1989, Ministry of Energy and Mines
 New Carolin’s Ladner Gold Property follows the Hozameen
fault structure for approximately 28 km and exceeds 144 square kilometers
covering substantially all of the accessible, yet still very underexplored,
CGB.
The Ladner Gold Project contains several former underground producing gold
mines and numerous gold prospects – more than 30 have been discovered so far.
Approximately 11 gold showings have been found within a 2 km stretch north of
the Carolin Mine.
A recently completed airborne geophysical survey indicated a major
magnetic linear structure that can be traced for over 18 km within the
company's claims. All the aforementioned gold prospects occur along this
major magnetic anomaly and there’s several kilometers of untested ground left
along the structure to explore.
New Carolin is not only shaping up as a very low risk shot at a
prospective near term producer but also as a company with excellent potential
for further discovery. The hair is rapidly coming off of this project.
Let’s get Jim Mustard, mining analyst and vice president of investment,
mining and banking at Vancouver-based PI Financial, to bring this into
perspective for us.
“The majority of M&A activity is focused on gold and copper projects.
Grade is king now. Anything that can be sold as shovel-ready, and that is in
a jurisdiction with clear permitting protocols, that is not subject to being
derailed, and that has low to modest capital expenditures, will be sold.”
Conclusion
When I first started investing in the junior resource space I was given
some good advice by many people. One pearl of wisdom was this;
They do not come along very often but many times the best investment is a
good project screwed up by poor management. The best return on your money
comes from a change of management coming in, taking over a great but screwed
up project.
This is exactly the opportunity I believe is being presented by New
Carolin.
The former owners went broke in Quebec, the last management team that had the
project were excellent promoters but horrible miners. LAD's 'modern'
management teams have, shall we say, lacked the necessary talents, imo, to
successfully develop this project.
CEO and president Robert (Bob) Thast and the current BofD is cut from
different cloth.
I've said it before, this is, rather was, a tired old play with a lot of
hair on it, but that’s history.
Today is a new day. And for that reason, and a whole lot more good things
to come, you need to have New Carolin Gold Corp. TSX.V-LAD on your radar
screen.
Is New Carolin on your screen?
If not, it should be.
Richard lives with his family on a 160 acre ranch in northern British
Columbia. He invests in the resource and biotechnology/pharmaceutical sectors
and is the owner of Aheadoftheherd.com. His articles have been published on
over 400 websites, including:
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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or
the solicitation of an offer to purchase or subscribe for any investment.
Richard Mills has based this document on information obtained from sources
he believes to be reliable but which has not been independently verified.
Richard Mills makes no guarantee, representation or warranty and accepts
no responsibility or liability as to its accuracy or completeness.
Expressions of opinion are those of Richard Mills only and are subject to
change without notice. Richard Mills assumes no warranty, liability or
guarantee for the current relevance, correctness or completeness of any
information provided within this Report and will not be held liable for the
consequence of reliance upon any opinion or statement contained herein or any
omission.
Furthermore, I, Richard Mills, assume no liability for any direct or
indirect loss or damage or, in particular, for lost profit, which you may
incur as a result of the use and existence of the information provided within
this Report.
Richard owns shares of New Carolin Gold Corp. TSX.V-LAD
New Carolin is a paid sponsor of Richard’s site aheadoftheherd.com
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