Last week, Great Bear Resources (GBR.V) released the results of the first deep drill hole on its Dixie project. Hole 85 was extended by an additional 1,000 meters from 524 meters all the way down to 1,509 meters in an attempt to check for continuity at depth. The hole was successful and confirmed the theory as it encountered several gold-bearing intervals with the 19 meters containing 10.19 g/t (including 7.95 meters of almost 24 g/t gold) as main highlight. Not only does this confirm the continuity of gold mineralisation at depth, it also is the widest high-grade interval encountered at Dixie to date. Note – the mineralization started just over 1,000 meters down hole but as the hole was drilled in an angle, the gold-bearing zone really starts at ‘just’ over 700 meters from surface.
And this first deep hole is just the beginning as Great Bear is planning on drilling several more of these deep holes, not just at Dixie Limb where the recent hole was drilled, but also on the LP Fault zone where the company’s geological team has been working on the same concept. Great Bear already targeted the LP Fault for a grid drill program on a 5,000 by 500 meter zone, and drilling a few deep holes could help the company to quickly add tonnes to what we expect to be a drill program focusing on getting GBR ready for a maiden inferred resource estimate.
We were surprised to have received a few emails ‘complaining’ about the capital raise as a lot of investors were wondering ‘why the company was raising money now and why at this valuation’. While Great Bear still had a strong treasury, we feel the raise is a good move as it will help the company to be fully funded to the end of 2021. Raising money in flow-through dollars at C$17/share keeps the dilution to an absolute minimum and allows Great Bear to target more high-impact holes as we can’t imagine the 1,500 meter hole to have been cheap.
Although there will always be funding available for good and hot exploration stories, it’s also important to ‘take the money’ when it’s available on good terms. And we honestly can’t understand why people would complain about a C$17/share warrant-free financing. CEO Taylor decided to take the money, and there’s absolutely no reason he shouldn’t have as this puts Great Bear in a very comfortable position to continue to aggressively drill the LP Fault and the Dixie Limb.
Disclosure: The author has a long position in Great Bear Resources. Great Bear is a sponsor of the website.