Great Bear Resources (GBR.V) has released an additional batch of drill results from its Dixie gold project in Ontario’s Red Lake gold district. Although all five holes have encountered gold, the market apparently wasn’t very impressed as Great Bear’s share price was sent 15% lower.
Three holes were drilled 150 meters from the current Hinge Zone drilling while an additional two holes were completed 400 meters west of the DHZ drilling. As you can see in the next table, all holes contained gold, although most intercepts were either narrower or contained lower grade gold than what you’d be used to in the Red Lake district. That’s not an issue as these are still very early days at Dixie, and encountering gold mineralization that appears to be continuous for a strike length of 500 meters already is a success.
That being said, Great Bear’s update is a bit confusing. After clearly stating in a February update the Dixie South Limb and Dixie Hinge Zone appeared to converge into one mineralized zone and the name Hinge Zone would be retained, Great Bear once again used the DSL designation ‘Dixie South Limb’ to name three holes in this weeks updates. Is ‘South Limb’ back? Did Great Bear drill and name the holes before it decided to simply use Dixie Hinge Zone going forward? That’s unclear. But using DSL when the South Limb zone has been officially abolished is quite confusing.
Another confusing element are the two holes that were drilled 400 meters west of the Hinge Zone. For some reason, these holes are called ‘DMS’, but the press release doesn’t contain any information about what DMS stands for. Is it a new mineralized zone that runs separately from the already discovered Hinge Zone? Unlikely, considering the main mineralization and the step-out holes are located on trend and along the same D2 structures and fault zones. It’s understandable GBR is giving these new zones preliminary new names as it’s still figuring out if they connect to the Hinge zone, but additional background information (DSL? DMS?) would be very welcome.
Finding more gold is great. But Great Bear will have to step up its efforts to provide clear information on its ongoing drill program as explaining the Dixie Gold discovery will take time and effort. High-grade gold has been discovered so the initial excitement has evolved into a ‘show us how to connect the dots’ attitude by the market. Or as one shareholder told us ‘fewer press releases and more insight and background information would be appreciated’.
Finding gold over an initial distance of 500 meters is excellent and we are looking forward to the next batch of drill results of its fully-funded 30,000 meter drill program.
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The author has a long position in Great Bear. Great Bear also is a sponsor of the website. Please read the disclaimer
