GTBAF - Great Bear Resources (GTBAF)(GBR:CA) - Latest Results Establish Continuity of High-Grade Mineralization at Depth
Meaningful drill results. Great Bear released results for 42 drill holes, of which 7 are representative of deeper LP Fault mineralization along 1.4 kilometers of strike length at a depth between 450-and-750 meters. Included were results for 17 shallow drill holes along 3.6 kilometers of strike length targeting lower grade bulk tonnage mineralization that surrounds high-grade gold domains. To date, Great Bear has reported 446 LP Fault drill holes and completed 300,000 meters of drilling at the Dixie property.Doubling down at the LP Fault. The new drill results established continuity of both high-grade and bulk tonnage style gold over a broad area at depth with the same pattern of high-grade domains surrounded by lower grade envelopes as observed from Phase 1 drilling results conducted to a depth of 450 meters. Deeper drilling will continue along an additional 2.6 kilometers of strike length during the Phase 2 program.Near-term catalysts. In addition to more Phase 2 drill results, the company expects to complete a maiden resource estimate in the first quarter of 2022 which will be based on Phase 1 drilling along a 4-kilometer strike length to a depth of 450 meters. Also in 2022, Great Bear expects to complete a preliminary economic assessment of the LP Fault Zone, a mineral resource update which will include deeper drill results from the LP Fault, and maiden mineral resource estimates for the Dixie Limb and Hinge zones.Rating is Outperform. We believe the Dixie gold project represents significant upside potential for shareholders. While Great Bear could elect to put Dixie into production, we think it is just as likely to be acquired within the next couple of years. Because exploration costs are rising, large gold deposits are increasingly scarce, and lead times for bringing a mine into production longer, we believe M&A activity could accelerate as large companies decide it is more efficient to acquire promising projects. We think Dixie has many attributes that major mining companies find attractive, including being located in a favorable mining jurisdiction with infrastructure advantages. Despite the outcome, we think the current price offers an attractive entry point for investors. Read More >>