A new, high-grade gold discovery in the Red Lake area of Ontario
A famous gold mining district in a favorable jurisdiction
Gold is shallow and beside a highway, good infrastructure
30,000 m drill program currently underway; company can drill up to 300 plus holes without needing financing again, so 2019 is fully funded.
Who are Great Bear Resources?
Four years ago, the firm struck a deal to acquire the Dixie mining claims in Ontario’s prolific Red Lake gold district and where Great Bear is now earning a 100% interest in 49 mining claims. In 2016, it bought the West Madsen gold project, an on-strike extension of Pure Gold’s high-grade Madsen project. Great Bear now has agreement in place to control 13,000 hectares of prospective ground.
Last year the firm completed its purchase of 100% royalty-free interest in the Dixie gold project, which lies around 15 minutes' drive along Highway 105 from downtown Red Lake, Ontario. The famous and prolific Red Lake mining district in Canada has produced over 30 million ounces of gold.
It benefits from major active mining operations including the Red Lake Gold Mine of Goldcorp Inc (NYSE:GG), plus modern infrastructure and a skilled workforce.
Great Bear is also earning a 100% royalty-free interest in the West Madsen, Pakwash, Dedee and Sobel properties, which it says cover regionally significant gold-controlling structures and prospective geology.
How's it doing?
Great Bear has really been steaming ahead with exploration at its ground since making a new gold discovery, announced last September.
The company named the discovery the South Limb zone (SLZ) and said it had uncovered the best gold grade to date at the property at 1.75 m (meters) with a whopping 101.05 g/t (grams per ton) gold. Significantly, that hole included another intercept of 346.79 g/t gold over 0.5 meters.
The firm said the new target was large and has the potential for several kilometres of strike length.
The company has also now discovered high grade gold at the Hinge zone too. In January this year, the group said: "Our Hinge and South Limb Zone are part of a continuous gold vein system which is interpreted to extend along 300 meters in strike length and has been drill tested to a depth of 212 meters.
"The zone remains open in all directions and "occurs immediately south of a regional east-west trending D2 fold hinge and associated structures' extending about 10 kilometres into undrilled areas."
Current drilling at Dixie Lake is focused on defining and expanding the Hinge and Dixie Limb zones previously identified within the historical mining area of Red Lake and on April 1, the firm said it had doubled drilling to 60,000 meters and added a third rig.
Around 12,000 meters of its original 30,000m program is still to be undertaken and will be completed sometime in July 2019. The additional 30,000 meters will continue throughout the year.
Starting this month, two rigs will focus on drilling along strike and at depth of the Hinge and Dixie Lake zones, while the third rig can accomplish both regional exploration and continue producing core samples at depths similar to other major Red Lake district gold discoveries.
What the CEO says:
President and CEO Chris Taylor has said on the results of two step-out holes at the Dixie Hinge Zone that the firm wants to see "how big this system can actually be".
"Some of the big productive zones at the main Red Lake gold mine, they're only 30m long or 120m long, sometimes they have huge depth extent - it could be hundreds of meters, usually it's less than that but collectively they do extend for kilometers," he said.
"But usually these zones don't extend for hundreds and hundreds of meters along strike. It seems like what we're dealing with in the Hinge zone in the area is impressively robust and large scale gold."