Stifel GMP has repeated a 'Speculative Buy' on Great Bear Resources (TSX-V:GBR) Ltd following news the Red Lake focused explorer has uncovered a new gold zone called Midwest at its main Dixie property.
The new zone was found near the Hinge and Limb areas and the mineralization closely resembled the style at the Dixie Limb zone. Drilled was 20.27 grams per ton (g/t) gold in an intercept of 1.75 metres (m) starting from a depth of 812.35m.
"With the maiden resource estimate expected in Q1/22, we re-iterate our thesis that Dixie is shaping up to be a coveted asset in any significant gold producer’s portfolio," said the Stifel analysts in a note to clients.
READ: Great Bear Resources discovers 'Midwest' zone at flagship Red Lake project; unveils new LP fault drill results
"Grade, size, location, long-life and development and operating optionality combine to create the potential for a cornerstone asset, with strong margins, in a coveted jurisdiction," they added.
The Stifel analysts also noted that all the "significant" gold zones at Dixie occupied a 1.4 kilometre wide dilation zone, and Phase 2 drilling will continue to test various new targets within this mineralized corridor.
They also noted that ongoing depth drilling at the flagship LP Fault zone continued to encounter gold mineralization at depth beyond the planned 400m-450m depth for the upcoming resource.
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