Expanded Gold Potential Confirmed with New Drill Results at Taurus Deposit

Source: Streetwise Reports 11/15/2024

Cassiar Gold Corp. (GLDC:TSX.V; CGLCF:OTCQX; 756:FRA) announced new drill results from five additional diamond drill holes at its Cassiar Gold Project in northern British Columbia. Read more to see how these promising drill results expand the Taurus deposit’s mineralization footprint and reinforce Cassiar’s bulk-tonnage potential.

Cassiar Gold Corp. (GLDC:TSX.V; CGLCF:OTCQX; 756:FRA) announced new drill results from five additional diamond drill holes at its Cassiar Gold Project in northern British Columbia, where the 2024 exploration program is currently underway. These results focus on the Taurus deposit’s Southwest and Sable areas, showing an expanded and continuous near-surface gold mineralization. The ongoing exploration program includes 7,168 meters of diamond drilling across 30 holes, as well as geophysics, mapping, and sampling, with 19 drill holes still pending results.

Among the reported highlights, drill hole 24TA-220 encountered 113.0 meters grading 0.84 grams per tonne gold (g/t Au) from the surface. Drill hole 24TA-216 revealed multiple intercepts, such as 18.8 meters at 1.29 g/t Au and a high-grade section with 0.5 meters at 40.70 g/t Au. These findings indicate continuity within the deposit, extending mineralization both within and up to 50 meters beyond the current inferred resource boundary.

News Release Highlights:

All drill holes reported in this release encountered reportable intercepts of mineralization above the 0.5 grams per tonne (g/t) gold (Au) cutoff of the 2022 Inferred Mineral Resource at Taurus[1], extending near surface mineralization and confirming continuity within the deposit. The latest results include:

• 113.0 m of 0.84 g/t Au from surface in drill hole 24TA-220

• Multiple intercepts returned in drill hole 24TA-216:

  • 18.8 m of 1.29 g/t Au

  • 46.2 m of 0.58 g/t Au

  • 39.3 m of 0.94 g/t Au, including 0.5 m of 40.70 g/t Au

• 32.4 m of 0.51 g/t Au in drill hole 24TA-228

• 39.7 m of 0.57 g/t Au and 17.3 m of 0.52 g/t Au in drill hole 24TA-211

Cassiar Gold’s President and CEO, Marco Roque, remarked on the results in the news release, stating, “We are pleased to share these latest results, which expand mineralization and reinforce the consistent and continuous nature of near-surface mineralization we see at the Taurus deposit, lending further support to our interpretation of controls on the distribution of bulk-tonnage mineralization at Taurus. With results pending from nineteen drill holes from the 2024 program, we look forward to sharing further insight into the scale of mineralization at the Cassiar Gold Property as we work to advance our property resource base and exploration strategy.”

Currently, the Taurus deposit hosts an inferred resource of 1.4 million ounces at an average grade of 1.14 g/t Au. The 2024 program aims to extend mineralization and validate continuity within this near-surface resource while furthering exploration across the property.

Where Is Gold Going?

Egon von Greyerz, Founder and Chairman, emphasized gold’s critical role as a “protector of wealth” in light of “unsustainable deficits and galloping debt levels” in his November 4 commentary. He noted that the dollar’s purchasing power had declined by 99% since the 1971 end of the gold standard, underscoring gold’s position as a consistent store of value amid ongoing monetary debasement. In his analysis, von Greyerz expected gold prices to rise substantially as these economic pressures continue, marking the metal as an essential hedge in the face of financial instability.

Valks of The Gold Advisor noted that Cassiar’s stock remains attractive at current levels, trading near five-year lows, and expressed optimism for future market recognition of the junior sector’s value, calling the stock’s position “exciting” given its substantial resource expansion.

On November 5, Yahoo! Finance described the ongoing gold rally as a “forewarning of fiscal ruin,” noting that gold’s alignment with the U.S. dollar — a rare occurrence — highlighted unusual market conditions. Experts reported that only about half of the recent 2,845-tonne supply increase could be accounted for, suggesting undisclosed demand sources, potentially from nations seeking to diversify reserves away from U.S. assets.

This trend, according to the article, reflected strategic moves by global powers to shield themselves from U.S.-centric financial risks.

According to a report by Stockhead on November 11, the Federal Reserve’s recent rate cut contributed to a gold surge past US$2,500 per ounce. This came about as inflationary concerns and geopolitical risks made the metal an attractive investment. Stockhead emphasized how central bank activity and robust retail demand further strengthened gold’s position, with silver also experiencing significant growth. Analysts maintained a positive outlook for gold and silver, noting that demand could stay strong given the unpredictable macroeconomic environment (Stockhead, November 11, 2024).

Axel Merk of Merk Investments, in his November 13 remarks for Seeking Alpha, stated that inflation stabilization, combined with fiscal deficits and ongoing geopolitical tensions, continued to support gold as a “Goldilocks” asset. He indicated that while junior mining companies faced challenges, they offered attractive opportunities within the sector. Merk anticipated sustained interest in precious metals as investors responded to both macroeconomic pressures and the potential for rate adjustments

Company Catalysts

According to Cassiar Gold’s November 2024 investor presentation, the company’s growth is driven by several strategic factors. Expansion potential remains a central focus, as the Taurus deposit’s inferred mineralization is open both laterally and at depth, with additional potential for discovering new bulk-tonnage and high-grade deposits across the Cassiar land package.

Cassiar Gold also benefits from existing infrastructure, including a fully permitted 300 tonnes-per-day mill and two mine permits, facilitating development while keeping operational costs lower. The company is led by a team of experienced industry professionals with a history of successful mineral discovery and project development.

Strong community relations and environmental responsibility further support Cassiar Gold’s efforts; the company has prioritized local hiring and training and maintains a collaborative relationship with the Kaska Dena First Nations. Together, these factors highlight Cassiar Gold’s strategic approach toward expanding its resource base and creating long-term value.

Expert Analysis of Cassiar Gold Corp.

Jeff Valks, Senior Analyst at The Gold Advisor, remarked on Cassiar Gold Corp.’s ongoing success at the Taurus deposit, highlighting the recent drill results as a strong addition to the company’s gold resources. He noted that Cassiar’s “expanding resource at Taurus” underscored the project’s growth potential, enhancing its appeal for future development. Valks emphasized that the results from this year’s exploration program “reinforce the consistent and continuous nature of near-surface mineralization” at the deposit, which builds on Cassiar’s 2022 inferred resource estimate of 1.4 million ounces at 1.14 g/t gold. [OWNERSHIP_CHART-9098]

The positive trajectory was echoed by CEO Marco Roque, who pointed to the near-surface mineralization as a foundation for Cassiar’s bulk-tonnage goals, stating, “These results expand mineralization and reinforce the consistent and continuous nature” at the Taurus deposit. The ongoing drill campaign, with additional assays pending, indicated further growth in the resource estimate, potentially setting the stage for an update in Q1. Valks noted that Cassiar’s stock remains attractive at current levels, trading near five-year lows, and expressed optimism for future market recognition of the junior sector’s value, calling the stock’s position “exciting” given its substantial resource expansion.

Ownership and Share Structure

According to Refinitiv, management and insiders of Cassiar Gold Corp. collectively hold 7.86% of the company, according to recent filings. About 0.35% of the shares are held by institutional investors, while the remaining 91.7% is held by retail investors and other public entities.

Structurally, Cassiar Gold has approximately 127.21 million outstanding shares, with 117.06 million in free float.

The company’s market capitalization stands at roughly CA$21.94 million. Its 52-week trading range has been CA$0.1520 to US$0.3274 per share.

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( Companies Mentioned: GLDC:TSX.V; CGLCF:OTCQX; 756:FRA, )