Ahead of The Herd, Telling you things everyone else doesn't already know.

Cariboo Rose TSX.V – CRB


Richard (Rick) Mills
Ahead of the Herd

As a general rule, the most successful man in life is the man who has the best information

The Quesnel Trough, arcing through much of central British Columbia, Canada encompasses most of the mines currently operating in the province as well as most of the projects currently in the prefeasibility and feasibility stages of development.

The Quesnel Trough attracts the lions share of exploration spending which is focused primarily on copper/gold porphyry style deposits. Porphyry copper deposits yield about two-thirds of the world’s copper and are therefore the world’s most important type of copper deposit. 

In Canada, British Columbia enjoys the lion’s share of this type of deposit, and they contain the largest resources of copper, significant molybdenum and 50% of the gold in the province.

Because of…

  • Strong metal prices
  • Substanial size
  • Improved economics of these porphyry copper/gold/moly deposits
  • An impressive series of recent discoveries  
  • Stable investment climate
  • Government tax sharing agreement with First Nations in place

there’s a very real trend by the major mining companies towards making deals with the junior resource companies that presently own copper/gold porphyry projects in BC.

Cariboo Rose TSX.V – CRB has an extremely interesting story. Not only did Gold Fields NYSE – GFI, a major gold producer, option the north half of their JV (Cariboo Rose 40% / Fjordland 60%) copper/gold porphyry project but had to match a very good offer from another major mining company for the south half.

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The Woodjam project is in south central British Columbia approximately 50 kilometers east of Williams Lake near the town of Horsefly

The land holdings measure up to 40 kilometers east/west and 30 kilometers north/south encompassing approximately 56,150 hectares. The terrain is low elevation with moderate topography and is bisected by a well-maintained network of logging roads and amenable to drilling on a year-round basis.

The last decade has seen a pine beetle problem that has devastated the forest in the area. The northern part of the Provinces economy has been based almost exclusively on logging but because of the recent Lodge Pole Pine Beetle infestation and the resulting destruction of a large part of the working forest locals in the area are very receptive to mining exploration and development.

An IP study performed in 2007 gave evidence that a large intrusive/hydrothermal complex measuring approximately five kilometers by six kilometers underlies the Woodjam property. This geophysical survey data dramatically expanded the area of interest for exploration on the Woodjam property and suggested a much greater potential for discovery than previously envisioned.

Northeasterly trending geologic features have long been considered important in determining the location of large mineralizing systems in the generally northwest trending Quesnel Trough. Interpretation of this data suggests that such a feature is present and is aligned with the known mineralized areas on the property.

Mineralization is calc-alkalic porphyry style with higher than average grades for a Quesnel Trough porphyry. Chalcopyrite is the dominant copper mineral but boronite is also present. The best gold and copper-bearing zones are associated with a monzonite porphyry intrusion and to a lesser extent with its volcaniclastic equivalents. Gold mineralization is directly correlated with copper - where there’s copper there’s gold.

Age dating has demonstrated that the mineralization at Woodjam is of a similar age as that of Tech Cominco’s Highland Valley copper/gold/moly mine near Logan Lake – 197 million years old. The mineralization displays very even distribution and continuity with high grade centers (called keels) within large zones of economic grade open pittable resources.

Gold Fields Horsefly Exploration Corporation - a member of the Gold Fields Limited group of companies (NYSE: GFI) - signed an Option and Joint Venture Exploration Agreement which grants them an option to earn up to a 70% interest in the northern portion of the Woodjam project.

Recently Gold Fields exercised its right of first refusal with respect to the Woodjam South property. Their offer matched one presented by another major international mining company – Freeport McMo-Ran Copper & Gold (NYSE - FCX).

Gold Fields can now earn a 70% interest in both the Woodjam South and Woodjam North properties by making cash pay­ments, providing exploration funding, subscribing for shares in Cariboo Rose (already completed at a 50 percent premium to the 10 day average trading price) and completing a feasibility study. Gold Fields can earn an initial 51% interest by spending US $7 million on each property. In total, Gold Fields could spend about $35 million over the next 7.5 years.

Canadian Creek Property

Castillian Resources Corp. has entered into an agreement with Alder Resources to acquire the right to Alders 60-per-cent interest in the Canadian Creek gold property located in the Whitehorse mining district. Alder had acquired its interest in the property pursuant to an option agreement dated June 11, 2009 between Alder and Cariboo Rose Resources Ltd. Alder had the option to acquire a 60% interest by making $250,000 in cash payments to Cariboo Rose, issuing a total of 250,000 shares and funding exploration expenditures totaling $2,500,000. Approximately $1,000,000 was spent on the property in 2009. CRB retains its 40 percent of the Canadian Creek property.

The Canadian Creek Propery consists of 309 claims covering approximately 6,180 hectares located 160 kilometers south of Dawson in the highly prospective Tintina Gold Belt in central Yukon and approximately 50 kilometers southeast of the White (Underworld/Kinross) gold discovery and adjacent to the Coffee (Kaminak) gold discovery. The very large tonnage low grade Casino copper-gold-molybdenum porphyry deposit owned by Western Copper is located immediately east of the property.

"This is an excellent acquisition for Castillian in what we consider to be a prime property in a major emerging gold belt in Yukon. Only recently has exploration focused on finding the newly discovered White-Coffee-style gold mineralization. Diamond drilling by previous operators has confirmed significant gold mineralization and geochemical sampling by Alder has outlined an extensive gold soil geochemical anomaly that extends for approximately 4 kilometres in the northeast part of the property. In addition analysis by Castillian geologists has identified other target zones on the Property that warrant follow up. Over the winter we plan to compile all available data in order to lay out a focused exploration program to evaluate priority target areas in 2011." Bill Pearson, President & CEO of Castillian

Cariboo Rose TSX.V – CRB Share Structure

Outstanding shares: 26,151,577

Warrants: 0

Options: 2,515,000

Fully Diluted: 28,666,577

Insider Share Ownership: 30%

Retail Share Ownership: 70%

Cash: $800,000.00

Debt: nil

Conclusion

It’s this authors opinion that these immense British Columbian copper-gold porphyries and their owners will eventually get the recognition they deserve. Is Cariboo Rose, TSX.V - CRB, and their JV Woodjam Project in central B.C. on your radar screen?

If not, maybe it should be.

Richard (Rick) Mills
rick@aheadoftheherd.com
www.aheadoftheherd.com

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Richard is host of aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 200 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell.com, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald, Resource Investor and Financial Sense.

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Legal Notice / Disclaimer

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

Richard Mills does not own shares of Cariboo Rose Resources
Cariboo Rose Resources TSX.V – CRB is an advertiser on his website aheadoftheherd.com.

 

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