Great Bear Resources (GBR.V) has released another batch of assay results from its ongoing 60,000 meter drill program it’s currently completing at its Dixie gold project in Ontario’s Red Lake gold district.
Great Bear has released the results from seven drill holes, which were all drilled on the so-called Dixie Limb zone (directly north of the Dixie Hinge Zone). All holes intersected gold, but three holes that assayed higher grade gold values offer important insight on the structures that control the gold mineralization as these three holes intersected gold at the predicted plunge, and this could make Great Bear’s life much easier going forward was the high grade gold zones at the Hinge Zone also appear to be predictable based on the plunges.
Upon reviewing the data from previous exploration programs and drill holes, Great Bear’s geologists noted the grades and thicknesses at Dixie Limb appeared to increase along a 100 meter strike length centered on the predicted intersection of the vein and the Dixie Limb.
The three holes that were drilled to test this theory effectively contained high-grade gold mineralization over mineable widths. Shorter intervals like 2.3 meters of 9.29 g/t which is typical Red Lake stuff, but there were also some longer intervals (like 5.3 meters containing 9.15 g/t gold) as well as narrower but ultra high-grade zones with 1.5 meters grading 20.12 g/t gold and 0.5 meters at 24.38 g/t gold.
It was surprising to see the market was shrugging off these excellent exploration results. Perhaps it was focusing too much on the four holes which returned lower grade gold assays? Or perhaps the importance of the ‘predictable plunge’ based model is misunderstood?
In any case, CEO Taylor’s comment in the press release is important as well: ‘ We now observe that the same late gold event that has led to high-grade mineralization in the Hinge Zone also positively affects the Dixie Limb ‘. And with a success ratio of 100% at Dixie Limb (every single hole of the in excess of 100 holes that have been drilled so far have hit gold), every additional hole confirms this could very well be a completely preserved gold system that has the potential to host millions of ounces of gold.
As Great Bear’s focus is now solely on the Dixie gold project (where it has its hands full with the fully-funded 60,000 meter drill program), the company made the wise decision to find a joint venture partner for the West Madsen land package.
Great Bear has now signed an agreement with GoldON Resources whereby the latter can earn an initial 60% interest in West Madsen after making cash payments and completing a certain amount of minimum exploration expenditures on the property:
On top of that, Great Bear will retain a 2.5% NSR on the property as soon as the 60/40 joint venture has been established. GoldON retains the right to repurchase 1% of that NSR for C$500,000 in cash.