Great Bear Resources (GBR.V) has announced it signed a purchase agreement to acquire a 100% ownership of the West Madsen gold project in Ontario’s Red Lake Gold District. This could be a very interesting and intriguing ‘nearology’ play, as the West Madsen project is located just 3 kilometers to the west of Pure Gold’s (PGM.V) Madsen property, where a very substantial drill program of in excess of 75,000 meters is in full swing.
The acquisition consists of two blocks, each with an approximate surface area of 6 kilometers by 3 kilometers, for a total of approximately 3,500-4,000 hectares (and not the 2,000 hectares claimed in the press release). And Great Bear most definitely didn’t ‘overspend’ on this acquisition, as it will own 100% of the claims by completing a payment of just C$70,000, as well as issuing 100,000 shares over a 4 year period. The property is also subject to a 1.5% NSR, of which 0.75% can be repurchased for half a million dollar.
Great Bear now controls thousands of hectares in the Red Lake Gold district and even though we were originally charmed by the potential of the properties in British Columbia, the Madsen (and Dixie Lake) properties are intriguing as well, and being on strike of the epicenter of the Pure Gold drill program might make this a very interesting ‘nearology-play’ as well.
In British Columbia, the company continues to work on its 50% owned BA project in the Golden Triangle, where it has released some results from a trenching program on a large VMS system. With 7.5 meters of 5.31% zinc, 1.97% lead and in excess of 4 ounces of silver per tonne as well as 6 meters of 0.35 g/t gold, 19.2 g/t silver and 2.1% copper, this trenching program could be considered successful as it confirmed the existence of the VMS system (which has been subject to drilling in the past).
We hope to see a drill program on the BC assets in 2017, as both the BA and Surprise Creek properties are very exciting, and the current market cap of C$2M (with C$1.1M in cash as of at the end of September!) isn’t doing the company any justice. Keep in mind to always work with a limit order, as the spread between bid and ask is pretty wide!