New assay results released September 24 from KO Gold Inc.'s (KOG:CSE; KOGDF:OTCQB) 100%-owned Smylers Gold Exploration Permit in the Otago Gold District of New Zealand's South Island are "very consistent with initial drilling that will eventually outline resources" along the Hyde-Macraes Shear Zone corridor, President and Chief Executive Officer Greg Isenor told Streetwise Reports.
Isenor said the outcome is significant given the corridor's closeness to a major producing mine, OceanaGold Corp.'s (OGC:TSX; OGC:NYSE) neighboring Macraes operation. For example, OceanaGold Corp.'s own September 2026 exploration update at Macraes — covering more than 12,000 meters across 48 holes drilled at Innes Mills since its 2025 resource estimate — reported results including 25 meters grading 0.8 grams per tonne (g/t) gold at hole DDH8224, part of a program the company says is confirming mineralization extensions that support a mine-life extension into the late 2030s.
"If Oceana had these numbers, they'd be drilling around them to find more resources," Isenor said of Thursday's results.
Latest Drilling Results at Smylers
KO Gold's latest results included 23 RC holes and 2 diamond holes totaling 2,070.7 meters between May and August 2026. Diamond drill hole SD0046 returned 0.82 g/t gold (Au) over 8 meters, including 4.09 g/t Au over 0.6 meters, the release noted. Diamond drill hole SD0047 returned 0.75 g/t Au over 5.9 meters, including 2.6 g/t Au over 1.3 meters. RC drilling intersected zones including 1.07 g/t Au over 2 meters, 1.05 g/t Au over 4 meters, 1.64 g/t Au over 2 meters (including 2.60 g/t Au over 1 meter), 2.34 g/t Au over 1 meter, and 1.28 g/t Au over 2 meters.
Isenor said the results reconfirm HMSZ-style gold mineralization with good grades and continuity over wide widths at Smylers and southeast of the Macraes Mine, supporting the geological model and providing the structural framework for the next phase of drilling. Drilling at Smylers is now complete, with work having commenced on private land at the 100%-owned Carrick Exploration Permit, marking the first modern drill testing of the historic Carrick Goldfield.
At Carrick, rather than exploring blind, he said the program is designed to step out from known historical intersections, since the company already knows where the shear zone sits and that gold has been present within it, including a historical trench sample in the area that reportedly returned about 11 meters grading roughly 11 g/t gold, a result that predates the company's current program and hasn't been verified to NI 43-101 standards.
"We expect to make a discovery," Isenor said. "That's the plan there."
Isenor said turning those results into a mineral resource will take more drilling and capital, which the company plans to raise.
Analyst Sees Rebound Ahead for Junior Miners
In an April 9 market analysis update, Technical Analyst John Newell of John Newell & Associates described recent downturns in junior mining shares as typical of bull market corrections, noting that "bull markets do not move in straight lines" and that such volatility often "shake[s] out weak hands." He said he believed the fundamental market structure remained intact and a rebound was likely, pointing to washed-out sentiment indicators and technical setups showing early signs of improvement after extended base building.
1That followed Newell's February analysis of KO Gold's exploration activities in New Zealand's Otago Gold District, where he noted the company had secured about 400 square kilometers of permits along key structural corridors and highlighted the Smylers Gold Project, southeast of the Macraes Gold Mine, as a pivotal asset with more than 4 kilometers of confirmed strike length along the Hyde-Macraes Shear Zone.
Citing completed financing and targeted drilling toward higher-grade zones, he concluded, "For investors willing to accept exploration risk in exchange for leveraged exposure to potential discovery, KO Gold Inc. remains a Speculative Buy."
Bullish Gold Market Outlook Supports Exploration Momentum
Goldman Sachs is maintaining a bullish long-term view on gold despite expectations for further U.S. Federal Reserve rate increases. While higher interest rates can reduce demand for the non-yielding metal, the bank expects continued central-bank purchases to provide enough support to preserve gold's broader upward trend, reported Yoon Young-sil for BusinessKorea on September 22.
According to TheStreet (quoted in the BusinessKorea article), Goldman Sachs said in a September 18 report that additional Fed tightening would likely slow gold's advance rather than reverse it. Analyst Lina Thomas kept the bank's end-2027 gold target at US$5,400 an ounce, representing roughly 23% upside from current levels.
Central-bank buying remains the main pillar of Goldman Sachs' outlook. Global central banks are currently purchasing an average of about 91 tonnes of gold per month, compared with 17 tonnes before 2022. China has been a major contributor, with the People's Bank of China adding gold to its reserves for 22 consecutive months through August.
Emerging markets are also reducing their reliance on the U.S. dollar by broadening the assets held in their foreign-exchange reserves, creating another source of structural support for gold. Concerns surrounding currency depreciation, rising government debt, and monetary policy uncertainty are also encouraging wealthy individuals and institutional investors to use gold as a store of value.
Goldman Sachs has nevertheless reduced its year-end 2026 fair-value range to US$4,650–US$4,900 from US$4,900, reflecting a greater chance that the Fed could follow its September 16 25-basis-point hike with another increase in October. Prolonged high rates could weaken gold ETF demand and create additional pressure on prices in the near term.
Gold extended its decline into lower support levels on Wednesday, falling to an intraday low of US$4,275 and remaining near the session bottom. The move took gold below its 50-day moving average, which had recently provided support after being reclaimed last Thursday, Bruce Powers wrote for FX Empire on September 24.
Project Context and Next Steps
KO Gold's Otago permits target southeast and northwest extensions of the Hyde-Macraes Shear Zone near OceanaGold's Macraes mine. The latest results build on prior intercepts and emphasize continuity and scale typical of the district.
With Smylers assays in hand, the company is advancing to Carrick for validation of historical gold intersections.
Key Investor Takeaways
- September 24, 2026, assays from KO Gold confirm and outline broad, structurally controlled gold mineralization along the HMSZ extension at Smylers, including intercepts up to 4.09 g/t Au over 0.6 meters.
- CEO Greg Isenor highlighted that the results support the geological model and enable confident planning for the next drilling phase focused on establishing mineral resources.
- Drilling has shifted to the Carrick permit for the first modern testing of the historic goldfield.
- Goldman Sachs considers gold pullback to be driven by interest rates rather than a reversal in the broader trend and has maintained its US$5,400 end-2027 gold target, supported by continued central-bank purchases.
- KO Gold maintains a district-scale land package of approximately 400 km² across four 100%-owned exploration permits and a Carrick Range exploration permit application.
- Market capitalization remains modest at around CA$7.72 million on September 24, providing leverage to exploration success in a supportive gold price environment.
Streetwise Ownership Overview*KO Gold Inc. (KOG:CSE; KOGDF:OTC)
RestructuresDate Old Symbol Old Shares New Symbol New Shares 09/28/01 CUA:CSE 1 KOG:CSE 1 11/09/98 PTL:CSE 3 CUA:CSE 1 *Share Structure as of 9/24/2026
Ownership and Share Information2
About 15.27% of the company is owned by insiders and management, and the rest is held by retail investors.
KO Gold's market cap is CA$7.72 million with 42.88 million shares outstanding. It trades in a 52-week range of CA$0.09 and CA$0.35.
Common Questions from Investors
What do the latest Smylers results mean for KO Gold?
The assays confirm continuity of HMSZ-style mineralization with grades consistent with the district, advancing the project toward potential resource definition while shifting focus to Carrick for new targets.
Is Goldman Sachs still bullish on gold despite the Fed raising rates further?
Yes. While the bank trimmed its year-end 2026 fair-value range to US$4,650–US$4,900 from US$4,900 on the risk of another October hike, it held its end-2027 target at US$5,400.
What is the status of drilling at Carrick?
Drilling has commenced on private land at the Carrick Exploration Permit as the first modern program targeting historic goldfield potential.
How does KO Gold compare to peers in the Otago district?
KO Gold holds permits adjacent to OceanaGold's Macraes operation and near Santana Minerals' Bendigo-Ophir project, focusing on HMSZ extensions in an underexplored portion of the belt.
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Important Disclosures:
- KO Gold Inc. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of KO Gold Inc.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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1. Disclosure for the quote from the John Newell article published on February 25, 2026
- For the quoted article (published on February 25, 2026), KO Gold has paid Street Smart, an affiliate of Streetwise Reports, US$3,550.
- Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
John Newell Disclaimer
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.
2. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
