Great Bear Resources (GBR.V) closed its bought deal last week and the team can now solely focus on the exploration activities again. Just this week, Great Bear released two exploration updates after encountering ultra high-grade gold over long intervals at the LP Fault.
The LP Fault keeps on giving with hole 133 encountering 12.4 meters of 30.51 g/t gold (just short of 1 ounce per tonne) including a higher grade interval of 103.56 g/t over 1.1 meters and within a thicker zone of just over 25 meters containing 15.45 g/t gold. In its June 8th press release, Great Bear called this the ‘widest highest-grade gold interval at the LP Fault to date’. This new record was only valid for 72 hours as hole 137 was released on Thursday encountering 20.55 meters containing 31.33 g/t gold (just over 1 ounce per tonne) and 45.1 meters containing 14.65 g/t gold.
On top of providing high-grade results, Great Bear was also able to confirm the continuity of the high-grade gold zone as hole 138 intersected the same zone just 50-75 meters below hole 137. The intervals are narrower but with 2.4 meters of 33.84 g/t, the grade is still there. And that’s important as this clearly illustrates the potential to further chase the mineralization at depth. Keep in mind GBR hasn’t gone deeper than 250 meters vertical depth at that specific area.
The grades and widths at the LP Fault are also interesting as the target is now clearly shaping up to be an open pit target (as a potentially high strip ratio will clearly be mitigated by the high grade) while the deeper holes indicate there still is the potential to go underground at a later stage.
After completing the C$33M bought deal, Great Bear we estimate the company to be sitting on a working capital position of around C$45M.
Disclosure: The author has a long position in Great Bear. Great Bear is a sponsor of the website.