There is a company with a project that is a two hour drive from Vancouver with ~24,000 ounces of gold sitting in tailings at surface. New Carolin Gold (TSX-V:LAD) has a 445,000 tonne indicated mineral resource in a tailings deposit at its Ladner Gold Project in southern BC that grades 1.83 grams/tonne gold. At today’s gold prices this gold is worth US$50 million.

A quick refresher on New Carolin’s advantages at Ladner:

  • Substantial infrastructure in place including road access to site, extensive underground development (existing adits), fully permitted tailings storage facility, hydro power runs through the property, and valid water licenses in place.
  • Ladner is 18 kilometers from Hope, BC which means that New Carolin does not need to build a camp on site and has access to skilled and experienced mining labor.
  • Existing 43-101 compliant resource totaling nearly 400,000 ounces of gold gives New Carolin a solid foundation from which to build upon.
  • Underground drill permits good through April 2022 with drill already in place in an existing adit. Drilling should begin within two weeks and could potentially continue through year end (depending upon market conditions and financing).
  • Tremendous location advantage with hydro power running through the property, highway access within a few kilometers of site, abundant labor in a mining-friendly area of southwest British Columbia, fully permitted mine where the ground has already been disturbed (brownfields) makes it much easier to restart operations and potentially get additional permits in the future.
  • Relatively low-cost drilling with all-in costs of drilling currently coming in at roughly C$250 per meter.
  • New Carolin’s Ladner Project is a district-scale property (144 square kilometers) that is under-explored, despite the fact that it has seen mining for more than 120 years. There is robust exploration potential throughout Ladner and the imminent underground drill program will focus on testing downplunge targets at the Carolin Mine. However, New Carolin has also identified multiple targets at surface at the Emancipation Mine, Pipestem Mine, and multiple other occurrences across the district-scale property.

At its recent $.10 share price New Carolin has a C$7.3 million fully-diluted market cap. If LAD can even manage a 10% profit margin on processing the tailings stockpile at Ladner it will have its entire market cap in cash - this cash pile could then fund additional exploration at Ladner including drilling prospective targets such as the Lorraine & McMaster targets.

New Carolin shares have recently moved above the 50-week moving average and resistance at $.08, setting the stage for a test of much bigger resistance near $.14-$.15:

In a recent conversation with New Carolin management I learned that the company is in discussion with multiple parties regarding the tailings stockpile. If New Carolin can find the right partner to help unlock the value from the tailings stockpile it could send the share price significantly higher in the current gold bull market climate. 

Disclosure: Author Owns Shares of LAD.V at the time of publishing and may choose to buy or sell at any time without notice. 


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