Great Bear Resources Ltd (CVE:GBR) (OTCQX:GTBAF) (FRA:0G6A) said it was approaching the completion of a 50-hole drill program on the LP Fault zone, at the Dixie project in the Red Lake district of Ontario.
The drill is part of the larger fully-funded $45 million exploration program that is ongoing at the company’s flagship Dixie project.
According to Great Bear, the site hosts two principal styles of gold mineralization, high-grade gold in quartz veins and three silica-sulphide replacement zones (the Dixie Limb, Hinge and Arrow).
READ: Great Bear Resources delivers more high-grade gold intercepts on two-year anniversary of landmark LP Fault discovery
"We are now only months away from completing more than fifty 40 – 50 meter spaced drill sections along 4.2 kilometers of the LP Fault zone," Chris Taylor, president and CEO of Great Bear said in a statement.
"These will be required for maiden mineral resource estimation modelling of the near-surface (0 – 400 meter depth), central area of the zone.”
Highlights from the drill included high-grade gold intercepts including 400 grams per ton (g/t) over 0.50 meters from 175.50 to 176.00 meters downhole. Bulk-tonnage gold intercepts include 2.23 g/t gold over 77.40 meters from 69.60 to 147.00 meters downhole.
Additionally, 11 of the 13 drill holes tested the bulk-tonnage style "halo" adjacent to the high-grade domains along more than 2.5 kilometers of strike length. Drilling intersected gold mineralization from bedrock surface to 500 meters vertical depth.
Great Bear now has 50 drill holes in various stages of completion, ranging from active drilling to being complete and awaiting receipt of assays. The company believes 400 drill holes are needed for a near-surface maiden mineral resource estimation. This work is slated for completion in the coming months.
Aside from the Dixie project, Great Bear also owns three other properties in the Red Lake district, Pakwash, Sobel and Red Lake North.
Research Capital repeats ‘Speculative buy’ rating
The project update prompted Research Capital to repeat its 'Speculative buy' rating on Great Bear with a share price target of $36.00.
Citing the positive drill results, ongoing exploration program and potential for expansion, Research Capital's analysts said they believed "there remains much to be discovered on the Dixie property".
Contact the writer at georgia@proactiveinvestors.com
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