Cassiar Gold Corp. (CGLCF) is the kind of still-underappreciated value that’s rare in this stage of a gold bull market. The company controls a district-scale, 590-square-kilometer land package in northern British Columbia, highlights Brien Lundin, executive editor of Gold Newsletter.
It’s anchored by a 2.34-million-ounce, near-surface, bulk-tonnage resource at the Taurus deposit, with 91% of the ounces sitting within 150 meters of surface. Most of that land position remains sparsely drilled, yet the stock still trades at a modest market valuation that works out to a very low in-situ value of only around $14/ounce of gold resource.
In a market where many similar names have already doubled or tripled, Cassiar has seen only a modest move off the lows. In our view, that leaves it as one of the better long-term value propositions in the junior gold space.
The company’s updated NI 43-101 technical report on the Cassiar Gold Property pegs Taurus at 8.8 million tonnes grading 1.43 g/t gold for 410,000 ounces in the indicated category, plus 63.2 million tonnes at 0.95 g/t for 1.93 million ounces inferred, using a 0.4 g/t cut-off and a $2,400/oz. gold price. Obviously, there’s lots of resource upside available at current gold prices.
The resource is pit-constrained, open for expansion in multiple directions, and already has strong strip and geometry working in its favor. That alone underpins the current valuation. But the real upside lies in the combination of emerging high-grade domains at Taurus, the Newcoast target just to the south, and a long trend of largely untested, Taurus-style geology across the broader Cassiar North and Cassiar South project areas.
Layer on the rest of the land package and you start to see the leverage. Cassiar South hosts multiple high-grade, past-producing orogenic veins that delivered more than 315,000 ounces at 10 g/t-20 g/t historically. The company also controls most of the high-grade Sheep Creek camp in southern British Columbia, which produced over 700,000 ounces at nearly 15 g/t but has seen little modern exploration. None of that is in the current resource, and relatively little modern drilling has gone into these targets compared with the scale of the ground.
The balance sheet is also funded, management is visible in the market, and the stock is still trading at a level that doesn’t come close to fully valuing the current ounces in the ground. Cassiar remains a buy for patient investors looking for underpriced leverage to both the gold price and resource growth, with the potential for a significant re-rating as the market catches up to the scale of the opportunity.
Recommended Action: Buy CGLCF.
