A Great Roar Waking the Mining Sector
I have heard some exploration geologists in Canada talk about how bears seem to protect areas of great drill targets. These ursine beasts the guardians of good drill targets only relinquished to those deserving. Stories of bear charges and encounters where geologists remain unharmed—only to later find outstanding outcrop or grab samples with to pinpoint drill targets. These might be fables, myths or just fun bar-stool stories from the brave outdoors men that challenge the rugged landscapes finding deposits. The name is aptly chosen for this company. All indication is that it might. Great Bear is scratching the surface of a world-class deposit with its mighty paw.
I have been expecting Canada to produce a major gold discovery; and of course, I am biased, but the potential is obvious with a number of incredible, resource rich regions. My attention has recently focused on the Golden Triangle, Northwest BC and the Yukon. However; Ontario is shaping up to be a big contender with Great Bear Resources roaring. This company checks all the boxes for my portfolio model, bring located near another favorite of mine, Pure Gold Mining. Great Bear has 49 mining are in Red Lake, Ontario. This region boasts historic production of 30 million ounces gold from 28 mines making it an excellent region by anyone standards. August 2018 saw a high-grade discovery: 16.35 m of 26.91 g/t gold and 7.00 m of 68.76 g/t gold in two holes, near surface, at Dixie Pr. These are incredible preliminary results and the market is looking forward, anticipating future results.
Great Bear today own a 100% interest in the Dixie Gold Project, Red Lake Ontario. What is exceptional is that in 2017 the company entered into a purchase agreement with Newmont Mining to acquire Newmont’s 33% stake in the project for $80,000 in total cash payments over 4 years. Then in September 2017, the company acquired an additional 26 minerals claims and today the Dixie Lake property covers 13,000 hectares.
At the Dixie Project, gold mineralization is confirmed along a 2.3 km strike of a 10 km target. The system at Dixie has a high-grade gold zone that includes recent intervals of 16.35 metres of 26.91 g/t gold and 7.00 metres of 68.76 g/t gold and is open along strike and at depth. Those results drew a $5.7 million investment by Rob McEwen and McEwen Mining, as part of a $10 million financing completed in September 2018.
Expect drilling news at any time.
The second part of the story is West Madsen. In November 2016, Great Bear nearly doubled its position in the Red Lake district with its acquisition of the West Madsen gold project, an on-strike extension of Pure Gold’s high-grade Madsen project. Having a strong company like Pure Gold next door, with plenty of success, data and metrics for comparable analysis makes life easier. Great Bear’s package of ultramafic rocks looks like Pure Gold’s Madsen too. Expect a robust exploration program through 2018 and 2019 specifically.
The ultramafic rocks hosting Pure Gold’s Madsen have a distinct high magnetic signature which can be traced by high-resolution airborne magnetic survey along strike right into the heart of Great Bear’s paws. Chris Taylor, President and CEO of Great Bear stated:
“Great Bear’s geological interpretation suggests we are drilling a dominantly mafic greenstone belt with comparable geological, structural, alteration and gold mineralization characteristics to the main Red Lake greenstone belt, where over 30,000,000 ounces of gold has been produced from 28 gold mines.”
It’s early, but that’s the best time for investors is Great Bear truly has a pot of gold in its possession. The company’s published presentation, found here makes an impressive case for a Pure Gold or perhaps even Red Lake style find.
President and CEO Chris Taylor was a geologist with Imperial Metals from 2004-2009 before coming on board with Great Bear in 2010. He has been instrumental in positioning the company for success and is clearly managing the ongoing success the company is experiencing. David Terry, PhD is a director of the company as well as a director of Golden Arrow Resources. Among the advisory board is John Robins, a Professional Geologist with over 30 years’ experience in the mining industry, currently the Executive Chairman of Bluestone Resources and a director of Fireweed Zinc, ValOre Metals, Northern Empire Resources, K2 Gold, Ethos Gold and Former Chairman of Kaminak Gold. Jim Paterson is a director of Northern Empire Resources and a director and CEO of ValOre Metals. Notably, Robins and Paterson served as directors of Kaminak from 2010 to 2016, when Goldcorp acquired Kaminak for more than $500 million.On top of this, the Great Bear Resources is part of the Discovery Group of Companies, a highly-respected mineral exploration consortium led by Robin’s which has raised more than $200,000,000 since 2016. This group includes familiar names like K2 Gold, Fireweed Zinc, Dunnedin Ventures and Northern Empire to name a few. Need I say any more?
The simple share structure of this great story leaves makes this an attractive buy for the value-conscious speculator: 34,990,328 shares out, adding up to 46,311,255 shares fully diluted. The ownership of the company is also held well with Rob McEwen owning 11%, management owning 11% and institutional clients owning 6%. As a brief update to this piece the company has announced a flow-through share offering through Comark Securities of 1,000,000 units at a price of $3.50. I am certain this offering will be oversubscribed!
Chris Taylor, President and CEO of Great Bear said, “The recent discovery of a new high-grade gold zone at the South Limb, together with multiple new drill targets related to D2 folding and newly discovered ultramafic units, have led us to plan for an increased scope of exploration activity at Dixie. Proceeds of the current placement, which brings the treasury to about $15 million, will help to fund this expanded program and allow thorough concurrent exploration of the high-grade gold discoveries at the Dixie Limb and Hinge Zones.”
Many of you know all too well the success this company is recently is relishing. They are flowing right ahead and meeting milestone after milestone. I am told news is pending. Expect a priority update when it comes.
When the markets are volatile or times crazy, I use my cash to buy the most hated basics on the market, and essentially I suggest the same. It’s been a long time since I’ve seen a company as undervalued as Great Bear Resources. Befriend that bruin in your portfolio, under his paws is a potential pot of gold.
Securities Disclosure: I, Andrew O’Donnell, hold no direct investment interest in any company mentioned in this article. I was not paid for this article.
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