The Most Compelling Gold Miner Today

Written by Gerardo Del Real
Posted October 22, 2018 at 3:44PM

Back on August 21, 2018, I wrote about the speculative fever that Novo Resources (TSX-V: NVO) had induced.

The stock had attracted the attention of retail and institutional investors, and many believed that the company could very well be on the verge of the largest gold discovery in history.

I opined that there were too many questions unanswered for me to justify speculating on a company with a market cap approaching C$700 million.

I explained that there wasn’t a resource in place, that we wouldn’t know for months whether the gold was continuous or just nuggets scattered over a wide area, and that establishing consistency and grade would be difficult due to the nugget effect in play.

Since then, the market cap has been cut in half for many of those reasons. I’m still rooting for Novo CEO Quinton Hennigh but will continue rooting for him from the sidelines, not with my checkbook.

Where Novo has already succeeded is in bringing attention back to the potential rewards of mining exploration.

There has been an increase in exploration expenditures and companies actually exploring — and succeeding — instead of just mining shareholders for money. 

In my opinion, the most compelling explorer in the junior space right now is Great Bear Resources (TSX-V: GBR).

Great Bear is a Discovery Group company (John Robins group) advancing the Dixie project in Red Lake, Ontario.

Shares in the company caught fire, surging from 52-week lows at the C$0.25 level to recent 52-week highs of C$3.50 a share after drill hole DHZ-004 retuned 44.47 g/t gold over 7.00 meters on August 22, 2018. 

That interval has been increased to 68.76 g/t gold over 7.00 meters through re-assay of a previously under-reported core interval.

great bear map

That hole has led many to speculate that the Dixie project could be a company maker.

The company has identified a critical ultramafic rock unit in outcrop with an interpreted strike length of at least 2 kilometers.  The unit is folded into the D2 fold axis that is associated with gold in the primary drill areas at Dixie.  Ultramafic rocks, together with D2 folding, are considered to be primary controls on high-grade gold mineralization across the Red Lake district.

Great Bear is drilling a dominantly mafic greenstone belt with geological, structural, alteration, and gold mineralization characteristics comparable to the main Red Lake greenstone belt, where over 30 million ounces of gold have been produced from 28 gold mines.

Great Bear has commenced a fully-funded 30,000-meter drill program that will consist of approximately 150 drill holes, and will continue through 2018 and 2019.

The program will continue to drill test the Dixie Limb Zone (“DLZ”), including its various sub-zones such as the Hinge Zone and South Limb Zone. 

Step-out drilling will also test additional targets along the 10-kilometer strike length of the DLZ.

In addition to the DLZ, a number of parallel structural trends and geological contacts that represent new potential gold mineralization targets elsewhere on the Dixie property have also been identified by Great Bear’s technical team. 

All of the more than 100 drill holes which have intersected the DLZ have encountered gold mineralization.

The results have attracted the attention of Rob McEwen, who, along with McEwen Mining, recently purchased 16.3% of Great Bear on a partially-diluted basis.

Is Great Bear the next Goldcorp? It’s too early to tell.

What we do know is that it has a great share structure with only 35 million shares outstanding (47 million fully diluted) and will have consistent news flow the remainder of this year and throughout 2019.

Great Bear is cashed up with over C$11 million in the treasury.

It has grade, it has scale, lots of targets, good infrastructure (year-round access and a 15 minute drive from downtown Red Lake) and owns 100% of a potential company maker.

There’s a lot to like for a company with a market cap of C$100 million.

To your wealth,

gerardo-sig

Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

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