On its anniversary of being public for two months, Golcap Resources (CSE:GCP)(OTC: GCRCF) gave its investors a present on Monday, announcing that it added about 23 square kilometers to more than double the size of its Redcap project in the increasingly popular Spences Bridge Gold Belt (SBGB) in south-central British Columbia. SBGB was a hotbed for placer gold mining 170 years ago and is seeing a resurgence in interest owing to high-grade gold and copper discoveries being made underground throughout the belt, particularly in the south where Golcap has set up camp.
Located in an ideal location (SBGB begins less than 50 kilometers from the Washington State border) with all necessary infrastructure and a rich mining history, SBGB has been subject to a staking rush over the past few years. Already home to the Copper Mountain (TSX: CMMC) open pit mine that produced 23.8 million pounds of copper equivalent during Q3 2020, new projects are being developed to the north, including Westhaven Gold’s (TSX-V: WHN) Shovelnose property, Talisker Resources’ (TSX: TSK) Spences Bridge and Kodiak Copper’s (TSX-V: KDK) MPD copper-gold porphyry project.
Following a highlight intercept of 763.6 metres of 0.21% copper, 0.07 g/t gold and 0.77 g/t silver during discovery drilling at MPD in 2019, Teck Resources (NYSE: TECK)(TSX: TECK.B) put up $7.9 million in a private placement in September to become a 9.9% owner of Kodiak Copper.
Situated between Shovelnose and Copper Mountain, and adjacent to Talisker’s Spences Bridge, is Golcap’s Redcap property only 1 kilometer outside Tulameen, a town with a rich history of mining and gold discoveries. Exploration results to date indicate potential for discovery of porphyry-style copper, copper-gold and copper-molybdenum deposits. The company recently spent about $130,000 on work, most of which was used to complete over 500 soil samples with duplicates sent to different labs for analysis. The best coincidental assay returned 0.377 ppm gold and 63 ppm silver.
In a NI 43-101 report completed in September, a two-phased exploration plan for Redcap was proposed for this year, including additional soil samples, geophysical surveys (ground and airbourne), mapping, prospecting and drilling.
Given the results and the prolific nature of surrounding projects, operating and historic mines, Golcap management has made it clear that they intend to aggressively build a large land position in the SBGB. A big stride was just taken in that direction with the company entering an agreement to option the Otter Lake claims abutting its existing 1,738-hectare property to expand the project to 3,938 hectares, or roughly 40 square kilometers.
A field exploration program was completed in 2020 at the claims, consisting of prospecting, surveying and sampling. It is hypothesized that some of the SBGB volcanic rocks collected during the program have similar mineralization to Westhaven’s Shovelnose property, where several high-grade gold veins have been discovered. The company is currently analyzing the sample results and historical data in preparation for a follow-up field exploration program in the coming months.
Per the agreement, Golcap has exclusive rights to acquire a 100% interest in the Otter Lake claims for incremental stock issuance and exploration expenditures. To acquire the total interest, less a 2% net smelter return (NSR) royalty to the existing owner, Golcap must pay a total of 2.5 million shares of its stock and spend $175,000 on exploration on the claims over three years.
If it so chooses, Golcap can buy back up to 1% of the NSR royalty for $1.0 million.
While exciting news for the company, Golcap CEO Gordon Lam certainly isn’t getting complacent. “[W]e’re not done yet,” he said in today’s new release, adding that the company is well-positioned to make more acquisitions in its mission to become a major player in the SBGB.
Lam noted the tens of millions in bought deal financings that have recently been completed by neighboring miners that signal strong support from institutional investors (not to mention a mining giant like Teck) that see the belt as prime real estate as B.C.’s newest gold and copper district.
“Now with a sizable land position in the Spences Bridge Gold Belt, we are gearing up for the upcoming exploration season,” said Lam. “Our immediate plans are to follow up on the numerous showings already identified on the property, with potential drilling later in the year.”
The land package isn’t the only thing that has gone two-fold. Investors have been rallying behind the new public company, doubling shares of GCP from their IPO opening price at 20 cents to 40 cents through Friday’s close. GCP remains at an attractive market capitalization at just $7 million.
Legal Disclaimer/Disclosure: While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing. Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of six thousand eight hundred dollars for Golcap Resources advertising from the company. There may be 3rd parties who may have shares of Golcap Resources and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Baystreet.ca, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
