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New Carolin Gold Corp (CVE:LAD) CEO on Ladner Gold Project’s Potential

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

New Carolin Gold Corp (CVE:LAD) (OTCMKTS:LADFF) (FRA:29N1) is a junior-stage exploration and development company operating in British Columbia. The company’s holdings are collectively known as the Ladner Gold Project and CEO Kenneth Holmes shares details of the site’s progress. The Ladner Gold Project is a large, 28 kilometre-long property near Hope, British Columbia. As a result, it has access to significant existing infrastructure. Historic drilling occurred at the site in the 1920s and 1930s as well as in the 1980s, but much of the property is unexplored. The company plans to use new mapping technology at the site to get a better sense of its potential. Holmes indicates the site has high-grade gold deposits and the potential to produce 300,000 ounces.

Transcript:

Ed Milewski:  Joining me now: Kenneth Holmes, CEO of New Carolin Gold Corp., and we’re talking about the Ladner gold project here in British Columbia.

Kenneth Holmes:    Exactly.

Ed Milewski:  And this is a big chunk of land.

Kenneth Holmes:    It’s 144 square kilometres, 28 kilometres long, straddling a major deep crustal fault, and one of the interesting features is, we’re only 18 kilometres out of Hope, BC, and just over an hour from Vancouver.

Ed Milewski:  So really, here, we’re talking about tons of infrastructure, tons of, you know, this is going to make it a lot cheaper to put this thing into production.

Kenneth Holmes:    Yeah. The –

Ed Milewski:  Back into production, because it was –

Kenneth Holmes:    It was in production in the early 80’s, yeah. The Coquihalla Highway actually straddles or runs right across part of our property. The portion of the property that contains the mine that was in production is only 6 kilometres up the mountain from that, a short run for power. We don’t even have to build a camp, because the staff would live in Hope; we’ve got four or five kilometres of underground development that gets us down access to deposits. We wouldn’t have to spend huge on that.

The historic mill has been scavenged and is rusted out, so we’d need to rebuild that, and we’ve got a pristine tailings facility with lots of capacity, so really it’s just building a mill and adding to our resource.

Ed Milewski:  And you have a resource of almost 300,000 ounces.

Kenneth Holmes:    Right.

Ed Milewski:  There’s five former producing mines on this property?

Kenneth Holmes:    Yeah. The Carolin was the significant one; it produced over 40,000 ounces. The Emancipation is the next one; it produced around 3,000 ounces, and then the rest were all smaller, artisanal-sized operations. But the fact is, and they were all, the Carolin was in production in the 80s, but the rest of them was all, like, 1920s and 30s. You know, small operation, but it demonstrated the gold up and down the entire structure.

Unfortunately – well, fortunately for us – that work was really all that’s been done on the rest of the property. The bulk of our historic drilled database is at the Carolin. There has been some other drilling, but most of that property is relatively unexplored, particularly with modern techniques.

Ed Milewski:  So this isn’t like a piece of Swiss cheese that’s got –

Kenneth Holmes:    No, no.

Ed Milewski:  This is the exact opposite.

Kenneth Holmes:    Exactly.

Ed Milewski:  Yeah, and so you got all kinds of targets, and you’re telling me about some of the juicier ones.

Kenneth Holmes:    Well, a lot of these have really good high grade, but we do have one occurrence that I would mention to you that I really want to get a drill under this year. According to the records, there’s some old miners took a couple of tonnes of ore out of this one location and got 30 ounces of gold.

Ed Milewski:  So that’s 15 –

Kenneth Holmes:    15 ounces a tonne.

Ed Milewski:  At today’s price, that’s like $20,000 rock or something like that.

Kenneth Holmes:    Yeah, exactly. It’s a big number. I’m not going to tell anybody that I’m going to find a mine with that, but when you have that kind of grade, I want to know what else is there, and where it goes, and –

Ed Milewski:  Sure, sure. And this company was rolled back –

Kenneth Holmes:    We did one consolidation this time last year. So right now, and we did a couple raises at higher prices this past year. We did one just at 15 at Christmas, a small ones, but the other ones were all done at 30 and 35. Even after that, we still only have 31 million, 32 million shares out right now.

Ed Milewski:  Great. And some of your warrants that are out there, are at $0.35?

Kenneth Holmes:    Yeah. The small placement we did at Christmas was just over $300,000, and those warrants were done at $0.25. But everything else is $0.35, $0.40.

Ed Milewski:  Sure, sure. And I know that the junior resource markets is not friendly right now. You’ve got to have something. But if you drill some great holes, you get rewarded. Like, you’ve seen it with Great Bear, and by the way, the gentleman that runs that company is on your Board.

Kenneth Holmes:    He is. He’s the independent Director on the company, but he’s –

Ed Milewski:  Yeah, yeah. That looks to me like you’ve got the land package, you’re in the pretty good area. You’ve got some permits, too, don’t you?

Kenneth Holmes:    We still hold the original permit from when it was in production back in the 80s. Now, obviously we’d have to do some amendments to that; build a new mill, and file a new mine plan. But it’s a big leg up over starting from scratch.

Ed Milewski:  Yeah, for sure, for sure.

Kenneth Holmes:    And under that, we’ve maintained the tailings facility. And if you see that, the tailings facility is – our tailings facility is a big water dam that holds back the tailings. Like, this is not going to be something – wouldn’t be something cheap to build. This would be a multi-million-dollar civil engineering exercise to build that. We don’t have to do that. We have it, we maintain it, we go through government inspections annually just to confirm the state of the thing, that it’s in good shape and that there’s not a problem with it. So it’s available to us if we were to ever put the mine back into production.

Ed Milewski:  Have you had many discussions with intermediate sized mining companies about maybe…

Kenneth Holmes:    I’m starting that process right now, and in fact, I’ve had discussions with two companies. One of them was, is still looking at it; the other one was talking about possibly being a lead order on a private placement rather than a joint venture. But I’m talking to these people about both, because the size of – no matter what –

Ed Milewski:  This is a big project.

Kenneth Holmes:    No matter what money we raise this year, we wouldn’t begin to do this properly justice, just because of the scale of it.

Ed Milewski:  So let me ask you this question: so, looking at the scale of this property, and looking at the drilling to date – and you’ve been familiar with this – what percentage of the drilling has been relevant? In other words, is this thing 10 percent drilled? Is it 5 percent drilled?

Kenneth Holmes:    No, I – the bulk of the drilling has just been on the one location, the Carolin Mine. And the Carolin Mine sits on, you know, maybe, as we speak now, if you drive into the portals on the different levels, they only go back about a kilometre. Well, this is a 28 km-long property, and the bulk of the drilling has been around that. So you can imagine just the scale of the property that hasn’t been explored with modern techniques.

We’ve got airborne geophysics on the whole thing, but there’s no extensive ground geophysics or drilling on –

Ed Milewski:  This is an orogenic deposit?

Kenneth Holmes:    Right. A mountain part of the structure is created through the mountain-building process, the tectonics, and the geos tell me this is an analog for the Motherlode deposit in California, and one of the features – and Bralorne – and one of the features of those is, they run deep.

Ed Milewski:  That’s what I was going to ask you. So how – you don’t know how deep it can go.

Kenneth Holmes:    No, exactly.

Ed Milewski:  And what altitude level are you at, here?

Kenneth Holmes:    Oh, we’re, you know, I don’t know what Hope is, but –

Ed Milewski:  Is it like 3,000 feet?

Kenneth Holmes:    It wouldn’t be that much. It would be less than that.

Ed Milewski:  So it’s fairly manageable.

Kenneth Holmes:    Oh yeah. It’s high enough up that we get lots of snow, but the fact that we drill year-round from the underground, snow is not an issue.

Ed Milewski:  Yeah. So you really, I mean, this looks like – yeah, if you don’t know, I’m kind of blown away, both the size of the property and some of the grades that you have here. And a story like that with the two tonnes in the back of the pickup, 30 ounces of gold, yeah, it’s underexplored. Totally underexplored.

Kenneth Holmes:    Wholly underexplored, yeah.

Ed Milewski:  So the ticker is LAD, Ladner Gold Project, New Carolin Gold. And do you have any major shareholders?

Kenneth Holmes:    We have by default a significant European bank as a shareholder, because they had lent money to a couple previous owners and wound up with their interest in the property, and we acquired it from them for stock, and that’s Deutschebank, and they’re a significant party. But at this point, they’re a passive shareholder. They’re not active.

Ed Milewski:  So your stock is pretty well retail-held, would you say that’s a fair statement?

Kenneth Holmes:    Exactly.

Ed Milewski: Yeah.

Kenneth Holmes:    And in fact, the most of the placements we’ve done in the last year have been with people close to the company.

Ed Milewski:  So I mean, yeah, and we’ve just had gold back off about $50, and I was thinking it was about to take off, and a lot of other people thought the same…

Kenneth Holmes:    Well, I’ll give you one comment about that: I can’t, I’m not a predictor of where gold is going to go, but we’re still over $1,200, and I went through, I did a little exercise a few months back: in our technical report, part of the historical narrative in that report shows the production month by month when it was back in production, ’82, ’83, ’84.

So I went back online and I pulled up gold prices during that period. I took the Bank of Canada inflation converter and I converted to 2018 prices. During the period that was in production, gold basically went from about, in 2019 dollars, from about $900 to the highest was $1,070 – so, still well under what we have today. And when they shut down in ’84, gold had dropped to what would be the equivalent of about $675 in today’s prices.

Ed Milewski:  Right, right. So price is not bad.

Kenneth Holmes:    I would love the price of gold to go to $1,400, but I don’t think we need it.

Ed Milewski:  Yeah, no, no. and you got lots of infrastructure. So again, right now there’s about 31 million shares; how much cash are you sitting on right now?

Kenneth Holmes:    We’ve got, you know, a few hundred thousand. We’re looking to do a raise to get the drills turning. As it happens, I have a drill, we have a drill sitting at the end of our 835 level ready to go. It was there from the summer, we did some drilling in the summer, and our driller has been fantastically loyal and left the drill there, ready to go.

Ed Milewski:  Right, right. Okay. Anything else you want to add?

Kenneth Holmes:    No, that’s, you’ve touched the basic story of this project is, it’s a district-scale land package that’s wholly underexplored.

Ed Milewski:  It’s a major camp.

Kenneth Holmes:    And we’re not starting from scratch. We’ve got a resource, and a –

Ed Milewski:  Permitting, and you’ve got –

Kenneth Holmes:    A lot of known gold on the whole thing that’s potential.

Ed Milewski:  Sure. Okay, LAD is the ticker. New Carolin Gold. Let’s watch this one. Thank you.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

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