Great Bear Resources (GBR.V) stunned the market last Wednesday when the company reported ultra high-grade assay results from the Hinge Zone on its Dixie Lake gold project in the Red Lake Gold district.
An eye-popping 16.4 meters at 26.91 g/t gold sounds great and even after isolating the ultra high grade zones of that hole (5 meters at 51.39 g/t gold and 1 meter of 112.6 g/t gold), the average grade of the remaining 10 meters still is a very respectable 7 g/t gold. Typical Red Lake area stuff, and a great hole overall. And just to make sure this wasn’t a ‘one hit wonder’, Great Bear drilled a second hole 15 meters below the discovery hole before it got carried away with excitement.
Not only did the second hole confirm the continuity of the gold zone, the assay results were equally as impressive with 7 meters of 44.47 g/t gold including 2 meters of 143.24 g/t. Again. Optically, it looks like Great Bear did some smearing, but when you run the numbers, the remaining 5 meters of the interval outside of the 2 meters of almost 5 ounces per tonne still contain almost 5 g/t gold. This isn’t just a ‘blind’ discovery (based on an alteration-based exploration theory to look for gold in the hinges of the zones), it’s a confirmed discovery. A shallow discovery, as both holes intersected high-grade gold within 110 meters from surface.
Whilst the big headlines obviously got all the attention, let’s not forget about Great Bear’s drill program on other parts of the Dixie Lake project. The assay results from an additional 5 holes (of which 4 were drilled as part of a Northwest Step-Out program) showed more gold mineralization and whilst none of the intervals was as exciting as the ultra high-grade mineralization found at the Hinge Zone, it’s now very clear Dixie Lake now is a very prolific district-scale exploration project.
Great Bear is still drilling as part of its 5,000 meter summer exploration program (which is fully funded), but we can imagine funds and senior producers are drooling over these drill results. Although Great Bear doesn’t ‘need’ the money, it would be wise to top up the treasury while the company is the market’s darling. Issuing 5 million flow-through shares at C$1.70 would raise C$8.5M and increase the share count to just 30 million shares – again evidence of how tightly controlled this company really is.
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The author has a small long position in Great Bear after taking some profits off the table. Please read the disclaimer
