New Carolin Gold Corp. Advancing Low-cost High-impact Plan to Affirm Historic 728,429 oz Gold with Bluesky Motherlode Potential

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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:

  • Plan to verify the 2009 estimate of potential quantity; "5 - 5.6 million tonnes grading 4.2 - 4.8 g/t gold at a 2.5 g/t cutoff, or between 0.9 - 1.1 million tonnes grading 8 - 9 g/t gold at 5 g/t cutoff" (source: 2015-Technical report), large database (~600 holes, ~50,000 m) and access to underground past production workings will result in a low-cost/high-impact program.

  • Tailings deposit grading 1.83 g/t is actively being marketed for sale to generate capital so Company may advance the project without share dilution.

  • Large land package with 5 past producing mines and 30 high-grade workings; similar geology to Bralorne and Motherlode -- multi-million ounce potential.

  • Experienced management, skilled technical leadership, stable mining-friendly jurisdiction, and excellent infrastructure.

Valuation Commentary: New Carolin Gold Corp.'s ($LAD:CA) ($MDULF) Ladner Gold Project is located only 150 km East of Vancouver, BC, Canada, in the Coquihalla Gold Belt.  It hosts 5 past producing mines and a high-grade underground historic (non 43-101) resource at the Carolin Mine of 728,429 gold ounces (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).  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. 


The latent intrinsic value of LAD.V relative to its current market capitalization of <$5 million (~74M shares outstanding X ~6 cents (~113M fully diluted)) appears to present exceptional opportunity -- 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.


This 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 there is an agreement in place whereby LAD.V only needs to provide ~$1,250,000 (remaining, however we speculate as little as $750K will suffice if presented) 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). Mining MarketWatch Journal estimates that a nominal capex of $1M is 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 (600+ holes, ~50,000 m). There is also potential to prove up a new major gold zone adjacent the Carolin Mine in the process.


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:




Grade g/T










Total M& Indicated:








Total/All Categories:




* 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. 


Figure 3. Mineralization/Geological Model - 5 Historical Mines & 30 known gold showings along fault.

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:

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


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.


Potential near-term quick-start mining scenario: In September 2014 New Carolin Gold Corp. completed its mandated inspection and report on the tailings impoundment located on its property -- the Company is fully permitted and up to date. The remaining tailings capacity is 1,327,723 metric tonnes -- this would accommodate New Carolin Gold Corp. restarting production at 600 TPD for 6 - 8 years. For a starter mining operation, New Carolin Gold Corp. could possibly target the ~1 million tonnes of ~9 g/t discussed in the May 29, 2015 Technical Report, and there would be enough room in the existing already permitted tailings pond to accommodate the operation -- back of the envelope calculations (assuming US$1,180/oz Gold (= ~CDN$1,500/oz Gold), and ~CDN$910/oz (US$700) cash-costs, ~90% recoveries) such an operation has potential to generate CDN~$150,000,000 NET (before offsetting capex and development to get there), and that's just the starter (Note: there is no PEA or plans, as we said 'back of the envelope' by this Journal). Such a scenario is not in the current plans of LAD.V, however this analysis underscores the appeal of the project, and chances are a major will step in and take this project to much higher scale and level when the multi-million ounce potential is demonstrated -- as is the plan.


Click here for expanded insight on New Carolin Gold Corp. and its flagship Ladner Gold Project.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


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