Since Great Bear Resources (GBR.V) has completed its flow-through placement, raising C$10.9M by issuing 2 million new shares at C$5.45, it has continuously been releasing drill results and most holes continue to add value to the Dixie gold project.
In yesterday’s update, Great Bear was once again able to publish high-grade assay results but even more important than the grades (with for instance 12.1 meters containing 5.87 g/t gold -which is absolutely excellent- including a higher grade zone of almost 5 meters containing 14.32 g/t gold which is phenomenal for the Red Lake district in hole 50) is the fact that these high grade encounters are validating Great Bear’s exploration theory.
The moment Great Bear was successful in hitting the gold veins at the Hinge Zone, it developed an exploration theory that helped the company to also find more and higher grade gold at Dixie Limb (which until then was considered to be a relatively low-grade exploration target with agrade of around 4 g/t). The new interpretation by Great Bear helps the company to maximize the efficiency of its exploration programs, and the discovery cost for the additional ounces will be relatively low as GBR has a pretty good idea where it should punch holes in the Limb zone to encounter the high-grade gold zones. One of the main reasons why Great Bear is hitting almost no dusters despite the fact the Red Lake district could sometimes be challenging.
Great Bear now has around C$20M in cash and remains over-funded for the remaining 55,000 meters of its 3-rig 90,000 meter drill program. With all three drill rigs now up and running (an increase from the single rig that was operating until February), Great Bear will very likely continue to publish assay results on a weekly basis.