New Carolin Gold Corp. (TSX-V: LAD) (OTC: LADFF) has arranged an offering of 12 million units at a price of nine cents per unit for gross proceeds of up to $1.08-million. Each unit comprises one common share and one-half of a share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of 15 cents per share for a period of 12 months from closing. The proceeds of the unit offering will be used to continue drilling the company’s Ladner gold project in southwestern British Columbia and for general working capital.
As previously announced, historic drill holes and the holes drilled in 2018 confirmed the expected geology and mineralization in the main zone at the historic Carolin mine, part of the Ladner gold project, and encountered an additional lower zone that is offset 200 metres to the southwest and referred to as the Hozameen zone. In particular, drill hole 18NC10 intersected 93 metres averaging 1.39 grams per tonne gold, including seven metres of 5.75 grams per tonne gold. This hole was drilled diagonally across two widely spaced historic holes, 11050-60 and 11000-71, which returned significant, broad gold-mineralized intercepts that were not followed up until 2018.
The Ladner gold project extends approximately 28 kilometres along the trend of the East Hozameen fault zone. Most gold occurrences along this fault zone occur within 600 metres of the fault, which is likely a key structural control for mineralizing events. In addition to the underground targets at the Carolin mine, New Carolin’s landholdings contain four other historic mines and 24 other known gold showings. For example, the Emancipation mine produced 2,897 ounces of gold and 605 ounces of silver while operating intermittently from 1916 to 1941. Three additional mines, including Aurum, Pipestem and Ward, have reported historical production totalling 940 ounces of gold.
Emancipation and Pipestem, together with some of the showings, occur along the same mineralized trend within several kilometres of the Carolin mine. All have seen only cursory historic exploration, and the company believes them to have significant exploration potential. Geologists are presently developing additional drill targets near or beneath these other mines and gold showings.
Subject to completion of the offering, the company plans to initiate a 4,000-metre-to-5,000-metre drill program. The program will: test the potential targets announced in the company’s Oct. 17, 2018, news release for additional resource expansion; further test the Hozameen zone; and drill the surface targets currently being developed near or beneath the other historic gold mines and gold showings on the property.
Finders’ fees may be payable on portions of the offerings, in accordance with TSX Venture Exchange policy. All securities issued in connection with both offerings are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation.
All disclosure of scientific or technical information made herein, including any disclosure of a mineral resource or mineral reserve, is based upon information prepared by, or under the supervision of, Trevor Rabb, PGeo (British Columbia), a qualified person as defined by National Instrument 43-101. Mr. Rabb has reviewed and approved the scientific or technical content of this news release as it relates to the Carolin mine and Ladner gold project.
About New Carolin Gold Corp.
New Carolin Gold is a Canadian-based junior company focused on the exploration, evaluation and development of its 100-per-cent-owned property consisting of 144 square kilometres of contiguous mineral claims and Crown grants, collectively known as the Ladner gold project. The project is located near Hope, B.C., in the prospective and underexplored Coquihalla gold belt, which is host to several historic small gold producers, including the Carolin mine, Emancipation mine and Pipestem mine, and numerous gold prospects.