Golcap Doubles Land Position in Spences Bridge Gold Belt as District Rush Continues

February 22, 2021 - By: Baystreet Staff

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.

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