GTBAF - Great Bear Resources Ltd. (GTBAF)(GBR:CA) - A Tier One Gold Deposit in the Making?
Initiating coverage with an Outperform rating. We are initiating coverage of Great Bear Resources Ltd. with an Outperform rating and a price target of C$26 or US$21 per share. Great Bear’s Dixie Project, located in the prolific Red Lake Mining District in Ontario, Canada, offers the potential to become one of the world’s few Tier 1 gold mines. Tier 1 gold mines are generally defined as those that produce at least 500 thousand gold ounces per year, a mine life exceeding 10 years, and costs in the lower half of the industry cost curve. While the company has not published a maiden resource estimate, based on drilling results over the life of the project, we estimate mineral endowment potential of at least 10.0 million gold ounces with significant growth potential.Exploration program yielding significant discoveries. The Dixie project includes several gold-bearing zones, including the LP Fault, Hinge, and Dixie Limb zones. Currently, most of the company’s drilling activities have focused on the LP Fault. The company has released results for 283 LP Fault drill holes and anticipates at least 117 additional LP fault drill holes will be completed by the end of 2021, for a total of 400 drill holes. The company currently has six drill rigs deployed and could add another rig during the summer months.Fully funded into 2022. The company’s activities are fully funded into 2022 following a private placement of shares in February 2021 for gross proceeds of C$69.9 million. Following the offering, the company has cash on hand of ~C$100 million and expects to spend C$45 million on exploration and drilling in 2021. Catalysts for the stock include continued positive drill results that better define existing zones and step-out drilling to expand the existing zones and to discover new ones. We anticipate the company will publish a maiden resource estimate in late 2021 or early 2022.Experienced management team. The company benefits from an experienced management team led by Mr. Chris Taylor, CEO, a structural and economic geologist with over 20 years of industry experience, and a largely independent board of directors that offer a broad range of relevant skills and experience. Read More >>