Great Bear Resources (TSXV: GBR) is off to a strong start at its Dixie Lake gold project in western Ontario’s 28 million oz. gold Red Lake district.
After revising the project’s geological model, the company completed a 1,000-metre drill program to test the continuity of a historically known, gold-bearing structure.
With intercepts of 10.4 metres of 16.84 grams gold per tonne, including 1.1 metre of 130.1 gram gold, president and CEO Chris Taylor says the “proof-of-concept” drill program was the first step in determining whether Dixie Lake would become Great Bear’s flagship project.
“We’re pleased with how the results are stacking up, and we’re happy to focus on the project going forward,” Taylor says. “We see a structurally controlled, mineralized zone that cuts across all the geology and is essentially continuous. We don’t see the gaps that were interpreted in previous geological models, which means that Dixie Lake has the capacity to host a much bigger system than previously thought.”
Dixie Lake falls within the Red Lake greenstone belt — an east-trending package of volcanic, sedimentary and intrusive rocks that hosts Goldcorp’s (TSX: G; NYSE: GG) Red Lake gold mine and Pure Gold Mining’s (TSXV: PGM) Madsen gold project, 20 km and 10 km north, respectively, of Dixie Lake.
Similar to Red Lake and Madsen, the mineralization at Dixie Lake is hosted along eastern structures that acted as conduits for gold-rich fluids 2.7 billion and 2.9 billion years ago.
At Dixie Lake, previous explorers have traced mineralization for 1.4 km at surface and up to 500 metres deep. The zones remain open along strike and at depth.
In light of the recent drill results, Great Bear expanded its land holdings at Dixie Lake to 71.1 sq. km to cover the northwest and southeast extensions of the prospective structure.
Taylor says that a historical drill hole, 2 km northwest of Dixie Lake’s Main Zone, speaks to the project’s “blue sky potential.” The hole returned 7 metres of 2 grams gold, including a 0.5-metre subinterval of 14.4 grams gold.
“Mineralization at Dixie Lake has size and grade potential, but how big it will be is unknown,” Taylor says. “And there are six other areas where gold was hit in historical drilling. The gold was found in units and a context you wouldn’t expect, so it appears mineralization at Dixie Lake is related to a regional system. There are a number of ways the project can grow, it just requires more work to figure it out.”
At Dixie Lake, our exploration thesis is to follow the gold structures — they’re the main targets and are widespread.”
Taylor says the company is driven by technical results.
“My background is in structural geology and ore controls, whereas Bob Singh — our vice-president of exploration — has over 20 years of experience working in the Red Lake area, so we bring a good skill set to the table,” he says. “We’re not Howe Street promoters, the company is more driven by technical results and a desire to succeed. We like to see the proof in the pudding, and that comes out of drilling.”
Great Bear became interested in Dixie Lake in late 2016, not only for its overlooked geological potential, but also for its road accessibility and year-round drilling. The company is planning a follow-up drill program in the coming months to expand the mineralization footprint at Dixie Lake’s Main Zone and test other targets.
The company will also use property geophysics and surface reconnaissance to find more targets for drilling.
Taylor says the company is fully funded for the upcoming program, having raised $420,000 in a private placement in July. The company issued 1.68 million units at 25¢ per unit, with each unit consisting of one share and one half warrant. Each warrant is exercisable at 35¢ per share for two years.
“Great Bear stands out amongst its peers. We have a tight share structure, with under 20 million shares outstanding and issued — and that’s a good position to be in during an advanced exploration program, where we generate these kinds of drill intercepts. We’re a good company to pay attention to.”
Shares of Great Bear have traded within a 52-week range of 12¢ to 50¢, and closed at 41¢ at press time. The company has under 15 million shares outstanding for a $5.8-million market capitalization.