Carlyle Commodities Perfectly Positioned in this New Gold Market
Authored By: Lemuel Daher
Gold has entered a potentially explosive new phase, posting its best month of October since 1978 with a gain of 7.3% that briefly took the yellow metal above $2,000 an ounce.
Some healthy consolidation is occurring now but the big move in October, aided by continued strong central bank buying, was likely the first major sign that something even bigger is brewing in the gold space for 2024.
Notably, some select advanced gold juniors started to take off to the upside in August, even as bullion was struggling on its way to an important bottom in the low $1,800’s by late September/early October. This, too, suggests 2024 could be a very profitable year for long-suffering gold bugs.
We know that gold is a safety net during times of instability and uncertainty. As a consequence of the tumultuous times we live in, international markets are dead-set on driving up the price of the metal. This, in turn, should be very bullish for advanced gold juniors in particular.
At MarketSmart, we’re proud to work with a gold junior that is perfectly positioned to take these advantageous markets by storm. Our eyes are fixed upon Carlyle Commodities Corp. (CSE: CCC) | (FSE: BJ4) | (OTC: CCCFF), a company that is focused on its flagship Newton Gold-Silver Project featuring an Inferred resource in British Columbia’s southern interior.
Carlye Commodities has year-round access to Newton, a huge advantage. The NI-43-101 resource is wide open for expansion in multiple directions including at depth. It’s a classic low sulphide epithermal system, and much of it has yet to be drilled.
The fact that Newton is located in British Columbia’s Cariboo region, near the town of Williams Lake, significantly lowers the cost of exploration and development – less than 50% the cost, for example, of some other exciting spots in the northwest part of the province.
Consider, too, that there is another property on the same regional trend just 180 km away that is strikingly similar to Newton in terms of geology and deposit style.
Right now, it’s one of the world’s largest open-pit development projects.
Artemis Gold’s Blackwater Gold Project, acquired from New Gold in 2020, is an industry trendsetter in many respects. Artemis commands a $1.1 billion market cap and is slated to put Blackwater into commercial production in late 2024.
Newton could very well be the next Blackwater.
With gold surging, Blackwater is fielding more and more looks from interested investors – but, then, so is Newton!
This shouldn’t be surprising. Anyone can see that Newton boasts a fascinating history that underscores its immense potential. Nearly 35,000 meters of drilling was carried out at the property a little over a decade ago, mainly between 2009-2012, comprising over 100 holes. The resource sector bear market that started in earnest by early 2013 stopped that project in its tracks.
Much of the large Newton Project sulphide-bearing alteration zone has not been thoroughly explored, but many holes outside of the known resource have actually intersected gold. The current Inferred resource is just a fraction of a very large geochemically anomaly.
In short, we agree with the company: All the drill hole intercepts, coincident gold-in-soils, IP chargeability, and favorable structures all point toward the potential of a much larger gold and silver resource at Newton.
Newton’s very recent history has us even more excited.
The company wrapped up its first phase of drilling (three holes) at Newton last spring, and results were impressive to say the least.
Morgan Good, CEO of Carlyle Commodities, has been convinced that the resource at Newton is much larger than originally believed.
Carlyle drilling is backing up that belief. Look to hole N23-091 where, from the top of bedrock, Carlyle intercepted 613.9 m of continuous bulk tonnage mineralization grading 0.53 g/t Au and 1.93 g/t Ag starting just 18.1 m from surface. This extended mineralization well below the current Inferred resource depth limits and included a higher-grade zone of 33 m averaging 1.41 g/t Au and 3.44 g/t Ag (317 to 350 m).
What’s more, holes N23-091 and N23-089 also demonstrated that the main mineralized felsic domain is much more extensive than previously understood.
All in all, Carlyle came away from this first phase of drilling with a thirst for a much more robust Phase 2 program, which is approaching fast.
Considering the way gold is trending at the moment, the timing really couldn’t be better.
So far, this next program is shaping up to be approximately seven holes for a total of 1,500 metres of drilling at an average depth of 200 m per hole. But keep in mind that Carlyle fully intends to expand this campaign once work is underway!
Not only are there various higher-grade near surface targets that the company intends to follow up on, but Carlyle is also interested in testing a felsic volcanic unit situated approximately 1 km to the northwest of the inferred deposit!
With a little over 41 million shares outstanding, Carlyle Commodities boasts an attractive share structure while liquidity in the stock is strong.
Right now, gold is like a 787 in the process of taking off, and it’ll ultimately take gold juniors – especially the more advanced ones – along for the ride. Folks, this is one flight you want to board early.
With gold doing its thing, and Phase 2 drilling imminent, Carlyle investors have much to look forward to over the coming months.
