January 7, 2022
Cassiar Gold Corp. (TSXV:GLDC, BUY, C$1.00 target, David A. Talbot) reported positive assay results from an additional four holes at the Taurus deposit, located at its flagship, 100%-owned Cassiar Au project in northern British Columbia. Multiple intervals of Au mineralization were reported both at depth and near to surface. The top results in terms of grade x thickness came from hole 21TA-128, the deepest hole drilled at Taurus to date, and include: 1) 1.01 g/t Au over 118.6m from 11m downhole including 43.8 g/t Au over 0.8m, and 2) 1.29 g/t Au over 45.3m from 349.7m downhole. The latter result helped extend the depth of known mineralization at Taurus. Other highlight results came from hole 21TA-135, which returned 2.56 g/t Au over 34.9m from 194.2m downhole, including 5.18 g/t Au over 9m. In our view, the results released thus far from 2021 drilling at Taurus bode well enhancing the existing ~1M oz inferred resource, having uncovered mineralization both at depth and internally within gaps of the resource footprint (read more on the previous two batches of assays here and here). Most reported holes contain intervals above Taurus’ resource grade of 1.43 g/t, and given that previous drilling in the area was widely spaced (~100m), we believe that opportunities exist for Cassiar to upgrade inferred resources into indicated by increasing the drill density whilst potentially delineating higher-grade tonnes. Several assays remain pending, including three holes from Cassiar North and 13 holes from Cassiar South. Recent drilling at Cassiar South targeted extensions of past-producing high-grade veins (read more), where a historical resource outlined ~70k oz at a whopping ~23 g/t Au. Assays aside, the company is planning for a 20,000-40,000m drill program in 2022, which is aimed at expanding the Taurus deposit and testing high-priority regional targets such as Wings Canyon and Snowy Creek, and potentially completing a NI 43-101 compliant resource at Cassiar South. Moreover, the company is looking to dust off its Sheep Creek Au project in southern BC with a planned drill program (read more on Sheep Creek in our initiation report). We note that both Sheep Creek and Cassiar South remain unaccounted for in our probability-based valuation, and therefore represent free upside. Read more
